Establishes a tax credit against income tax based on eligible expenses incurred for care and support of an eligible family member.

Rhode Island Family Caregiver Tax Credit Act

This bill would create a new tax credit for Rhode Island residents who spend their own money to care for a family member who needs assistance. The credit would be applied directly against the state income taxes a caregiver owes, meaning it could reduce — or potentially eliminate — their state tax bill based on qualifying out-of-pocket expenses they incur while providing care and support.

The bill would affect family members who take on caregiving responsibilities for a loved one, such as an elderly parent, a spouse, or another relative who requires ongoing care and support. Eligible expenses might include things like medical equipment, home modifications, or other care-related costs, though the specific qualifying expenses and credit limits would be defined in the final legislation. Caregivers who spend significant personal funds supporting a family member could see meaningful financial relief when they file their state taxes.

This type of legislation is generally aimed at recognizing and easing the financial burden on the estimated millions of Americans — and many Rhode Islanders — who provide unpaid or partially paid care to family members rather than relying solely on professional care services or government programs. The bill has been introduced and referred to the Senate Finance Committee, where lawmakers will review its potential cost to the state and determine whether any adjustments are needed before it moves forward.