AN ACT RELATING TO TAXATION -- THE RHODE ISLAND FAMILY CAREGIVER TAX CREDIT ACT

HB 7241 establishes a state tax credit for Rhode Island residents who provide unpaid care to qualifying family members. It allows eligible caregivers (earning under $50,000 individually or $100,000 jointly) to claim a 50% credit on out-of-pocket expenses for caregiving, capped at $1,000 annually. Eligible expenses include home modifications, medical equipment, hiring aides, or respite care, but exclude insurance-covered costs or general home maintenance. The credit applies to expenses incurred after 2026 for family members aged 65+ or with disability benefits who live with the caregiver and need help with at least two basic self-care tasks (like bathing or dressing).