AN ACT RELATING TO TAXATION -- THE RHODE ISLAND FAMILY CAREGIVER TAX CREDIT ACT (Establishes a tax credit against income tax based on eligible expenses incurred for care and support of an eligible family member.)

S2246

2026 -- S 2246
========
LC003264
========

STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
____________
A N A C T
RELATING TO TAXATION -- THE RHODE ISLAND FAMILY CAREGIVER TAX CREDIT
ACT

Introduced By:
Senators Ujifusa, Lawson, Ciccone, Tikoian, DiPalma, Zurier, DiMario,
E Morgan, Acosta, and Felag

Date Introduced:
January 23, 2026

Referred To:
Senate Finance
It is enacted by the General Assembly as follows:
1
SECTION 1. Legislative findings.
2
The general assembly hereby makes the following findings.
3
(1) About eighty percent (80%) of care at home is provided by unpaid family caregivers,
4
many of whom are older persons providing care to a spouse or family member with disabilities.
5
(2) More than half of caregivers have intensive caregiving responsibilities that include
6
assisting with personal care activities such as bathing, feeding or toileting.
7
(3) Research shows that unpaid family caregivers are frequently under substantial physical,
8
psychological, and financial stress.
9
(4) On average unpaid family caregivers spend seven thousand dollars ($7,000) a year out-
10
of-pocket to assist their family member to be able to live at home.
11
(5) Providing a state income tax credit for expenditures paid by family caregivers shall help
12
relieve some of the financial burden caregivers face in fulfilling their caregiving responsibilities.
13
SECTION 2. Title 44 of the General Laws entitled "TAXATION" is hereby amended by
14
adding thereto the following chapter:
15
CHAPTER 30.4
16
THE RHODE ISLAND FAMILY CAREGIVER TAX CREDIT ACT
17

44-30.4-1. Short title.

18

This chapter shall be known and may be cited as "The Rhode Island Family Caregiver Tax

1
Credit Act."
2

44-30.4-2. Definitions.

3

As used in this chapter, the following terms shall have the following meanings unless the
4
context clearly indicates otherwise:
5

(1) "Activities of daily living (ADL)" means and includes:
6

(i) Ambulating, which is the extent of an individual's ability to move from one position to
7
another and walk independently;
8

(ii) Feeding, which is the ability of an individual to feed oneself;
9

(iii) Dressing, which is the ability to select appropriate clothes and to put the clothes on
10
without aid;
11

(iv) Personal hygiene, which is the ability to bathe and groom oneself and maintain dental
12
hygiene and hair and nail care;
13

(v) Continence, which is the ability to control bladder and bowel function; and
14

(vi) Toileting, which is the ability to get to and from the toilet without aid, using it
15
appropriately, and cleaning oneself.
16

(2) "Eligible expenditure" means and includes:
17

(i) The improvement or alteration to the eligible family caregiver's or eligible family
18
member's primary residence to permit the eligible family member to live in the residence and to
19
remain mobile, safe and independent;
20

(ii) The eligible family caregiver's purchase or lease of equipment including, but not limited
21
to, durable medical equipment, that is necessary to assist the eligible family member in carrying
22
out one or more activities of daily livings (ADL); and
23

(iii) Other paid or incurred expenses by the eligible family caregiver that assist the eligible
24
family caregiver in providing care to an eligible family member. These expenses include, but are
25
not limited to, the following:
26

(A) Hiring a home care aide;
27

(B) Temporary respite care;
28

(C) Adult day care;
29

(D) Personal care attendants;
30

(E) Health care equipment; and
31

(F) Technology.
32

(iv) The eligible expenditures shall be directly related to assisting the eligible family
33
caregiver in providing care to an eligible family member. Eligible expenditures shall not include
34
items or services that are reimbursable by the eligible family member's healthcare insurance

LC003264 - Page 2 of 19
1
including state and federal government insurance programs or the carrying out of general household
2
maintenance activities such as painting, plumbing, electrical repairs, or exterior maintenance.
3

(3) "Eligible family caregiver" means a resident taxpayer of the state who provides care
4
and support to an eligible family member and:
5

(i) Who has a federal adjusted gross income for the taxable year less than fifty thousand
6
dollars ($50,000) for an individual and less than one hundred thousand dollars ($100,00) for a
7
couple filing jointly; and
8

(ii) Who has personally incurred uncompensated expenses directly related to the care of an
9
eligible family member.
10

(4) "Eligible family member" means an individual who:
11

(i) Is sixty-five (65) years of age or older or has qualified for Social Security Disability
12
Benefits Insurance;
13

(ii) Resides with the eligible family caregiver at their permanent place of residence in the
14
state for not less than six (6) months of the taxable year;
15

(iii) Does not reside in an assisted living center, nursing facility, or residential care home;
16

(iv) Requires assistance with at least two (2) activities of daily living (ADL) certified by a
17
licensed health care provider; and
18

(v) Is a dependent, spouse, domestic partner, sibling, grandparent, grandchild, or is a
19
second degree relative.
20

44-30.4-3. Implementation.

21

(a) For taxable years beginning after December 31, 2026, there shall be allowed a credit
22
against the tax imposed pursuant to § 44-30-2.6 ("Rhode Island taxable income -- Rate of tax") in
23
the amount of fifty percent (50%) for eligible expenditures incurred by a family caregiver for the
24
care and support of an eligible family member.
25

(b) The maximum allowable credit authorized by this section shall be one thousand dollars
26
($1000). If two (2) or more family caregivers claim the tax credit for the same eligible family
27
member, the maximum allowable credit shall be allocated in equal amounts between each of the
28
family caregivers.
29

(c) The credit authorized under this section shall not be used to reduce the tax liability of
30
the taxpayer to less than zero. The credit shall not be carried over into a subsequent tax year.
31

(d) The department of revenue shall promulgate rules and regulations necessary to
32
implement and administer the credit authorized by this section.
33
SECTION 3. Section 44-30-2.6 of the General Laws in Chapter 44-30 entitled "Personal
34
Income Tax" is hereby amended to read as follows:

LC003264 - Page 3 of 19
1

44-30-2.6. Rhode Island taxable income — Rate of tax.
2
(a) “Rhode Island taxable income” means federal taxable income as determined under the
3
Internal Revenue Code, 26 U.S.C. § 1 et seq., not including the increase in the basic, standard-
4
deduction amount for married couples filing joint returns as provided in the Jobs and Growth Tax
5
Relief Reconciliation Act of 2003 and the Economic Growth and Tax Relief Reconciliation Act of
6
2001 (EGTRRA), and as modified by the modifications in § 44-30-12.
7
(b) Notwithstanding the provisions of §§ 44-30-1 and 44-30-2, for tax years beginning on
8
or after January 1, 2001, a Rhode Island personal income tax is imposed upon the Rhode Island
9
taxable income of residents and nonresidents, including estates and trusts, at the rate of twenty-five
10
and one-half percent (25.5%) for tax year 2001, and twenty-five percent (25%) for tax year 2002
11
and thereafter of the federal income tax rates, including capital gains rates and any other special
12
rates for other types of income, except as provided in § 44-30-2.7, which were in effect immediately
13
prior to enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA);
14
provided, rate schedules shall be adjusted for inflation by the tax administrator beginning in taxable
15
year 2002 and thereafter in the manner prescribed for adjustment by the commissioner of Internal
16
Revenue in 26 U.S.C. § 1(f). However, for tax years beginning on or after January 1, 2006, a
17
taxpayer may elect to use the alternative flat tax rate provided in § 44-30-2.10 to calculate his or
18
her personal income tax liability.
19
(c) For tax years beginning on or after January 1, 2001, if a taxpayer has an alternative
20
minimum tax for federal tax purposes, the taxpayer shall determine if he or she has a Rhode Island
21
alternative minimum tax. The Rhode Island alternative minimum tax shall be computed by
22
multiplying the federal tentative minimum tax without allowing for the increased exemptions under
23
the Jobs and Growth Tax Relief Reconciliation Act of 2003 (as redetermined on federal form 6251
24
Alternative Minimum Tax-Individuals) by twenty-five and one-half percent (25.5%) for tax year
25
2001, and twenty-five percent (25%) for tax year 2002 and thereafter, and comparing the product
26
to the Rhode Island tax as computed otherwise under this section. The excess shall be the taxpayer’s
27
Rhode Island alternative minimum tax.
28
(1) For tax years beginning on or after January 1, 2005, and thereafter, the exemption
29
amount for alternative minimum tax, for Rhode Island purposes, shall be adjusted for inflation by
30
the tax administrator in the manner prescribed for adjustment by the commissioner of Internal
31
Revenue in 26 U.S.C. § 1(f).
32
(2) For the period January 1, 2007, through December 31, 2007, and thereafter, Rhode
33
Island taxable income shall be determined by deducting from federal adjusted gross income as
34
defined in 26 U.S.C. § 62 as modified by the modifications in § 44-30-12 the Rhode Island

LC003264 - Page 4 of 19
1
itemized-deduction amount and the Rhode Island exemption amount as determined in this section.
2
(A)
Tax imposed.
3
(1) There is hereby imposed on the taxable income of married individuals filing joint
4
returns and surviving spouses a tax determined in accordance with the following table:
5
If taxable income is: The tax is:
6
Not over $53,150 3.75% of taxable income
7
Over $53,150 but not over $128,500 $1,993.13 plus 7.00% of the excess over $53,150
8
Over $128,500 but not over $195,850 $7,267.63 plus 7.75% of the excess over $128,500
9
Over $195,850 but not over $349,700 $12,487.25 plus 9.00% of the excess over $195,850
10
Over $349,700 $26,333.75 plus 9.90% of the excess over $349,700
11
(2) There is hereby imposed on the taxable income of every head of household a tax
12
determined in accordance with the following table:
13
If taxable income is: The tax is:
14
Not over $42,650 3.75% of taxable income
15
Over $42,650 but not over $110,100 $1,599.38 plus 7.00% of the excess over $42,650
16
Over $110,100 but not over $178,350 $6,320.88 plus 7.75% of the excess over $110,100
17
Over $178,350 but not over $349,700 $11,610.25 plus 9.00% of the excess over $178,350
18
Over $349,700 $27,031.75 plus 9.90% of the excess over $349,700
19
(3) There is hereby imposed on the taxable income of unmarried individuals (other than
20
surviving spouses and heads of households) a tax determined in accordance with the following
21
table:
22
If taxable income is: The tax is:
23
Not over $31,850 3.75% of taxable income
24
Over $31,850 but not over $77,100 $1,194.38 plus 7.00% of the excess over $31,850
25
Over $77,100 but not over $160,850 $4,361.88 plus 7.75% of the excess over $77,100
26
Over $160,850 but not over $349,700 $10,852.50 plus 9.00% of the excess over $160,850
27
Over $349,700 $27,849.00 plus 9.90% of the excess over $349,700
28
(4) There is hereby imposed on the taxable income of married individuals filing separate
29
returns and bankruptcy estates a tax determined in accordance with the following table:
30
If taxable income is: The tax is:
31
Not over $26,575 3.75% of taxable income
32
Over $26,575 but not over $64,250 $996.56 plus 7.00% of the excess over $26,575
33
Over $64,250 but not over $97,925 $3,633.81 plus 7.75% of the excess over $64,250
34
Over $97,925 but not over $174,850 $6,243.63 plus 9.00% of the excess over $97,925

LC003264 - Page 5 of 19
1
Over $174,850 $13,166.88 plus 9.90% of the excess over $174,850
2
(5) There is hereby imposed a taxable income of an estate or trust a tax determined in
3
accordance with the following table:
4
If taxable income is: The tax is:
5
Not over $2,150 3.75% of taxable income
6
Over $2,150 but not over $5,000 $80.63 plus 7.00% of the excess over $2,150
7
Over $5,000 but not over $7,650 $280.13 plus 7.75% of the excess over $5,000
8
Over $7,650 but not over $10,450 $485.50 plus 9.00% of the excess over $7,650
9
Over $10,450 $737.50 plus 9.90% of the excess over $10,450
10
(6) Adjustments for inflation.
11
The dollars amount contained in paragraph (A) shall be increased by an amount equal to:
12
(a) Such dollar amount contained in paragraph (A) in the year 1993, multiplied by;
13
(b) The cost-of-living adjustment determined under section (J) with a base year of 1993;
14
(c) The cost-of-living adjustment referred to in subparagraphs (a) and (b) used in making
15
adjustments to the nine percent (9%) and nine and nine tenths percent (9.9%) dollar amounts shall
16
be determined under section (J) by substituting “1994” for “1993.”
17
(B)
Maximum capital gains rates.
18
(1) In general.
19
If a taxpayer has a net capital gain for tax years ending prior to January 1, 2010, the tax
20
imposed by this section for such taxable year shall not exceed the sum of:
21
(a) 2.5% of the net capital gain as reported for federal income tax purposes under section
22
26 U.S.C. § 1(h)(1)(a) and 26 U.S.C. § 1(h)(1)(b).
23
(b) 5% of the net capital gain as reported for federal income tax purposes under 26 U.S.C.
24
§ 1(h)(1)(c).
25
(c) 6.25% of the net capital gain as reported for federal income tax purposes under 26
26
U.S.C. § 1(h)(1)(d).
27
(d) 7% of the net capital gain as reported for federal income tax purposes under 26 U.S.C.
28
§ 1(h)(1)(e).
29
(2) For tax years beginning on or after January 1, 2010, the tax imposed on net capital gain
30
shall be determined under subdivision 44-30-2.6(c)(2)(A).
31
(C)
Itemized deductions.
32
(1) In general.
33
For the purposes of section (2), “itemized deductions” means the amount of federal
34
itemized deductions as modified by the modifications in § 44-30-12.

LC003264 - Page 6 of 19
1
(2) Individuals who do not itemize their deductions.
2
In the case of an individual who does not elect to itemize his deductions for the taxable
3
year, they may elect to take a standard deduction.
4
(3) Basic standard deduction.
5
The Rhode Island standard deduction shall be allowed in accordance with the following
6
table:
7
Filing status Amount
8
Single $5,350
9
Married filing jointly or qualifying widow(er) $8,900
10
Married filing separately $4,450
11
Head of Household $7,850
12
(4) Additional standard deduction for the aged and blind.
13
An additional standard deduction shall be allowed for individuals age sixty-five (65) or
14
older or blind in the amount of $1,300 for individuals who are not married and $1,050 for
15
individuals who are married.
16
(5) Limitation on basic standard deduction in the case of certain dependents.
17
In the case of an individual to whom a deduction under section (E) is allowable to another
18
taxpayer, the basic standard deduction applicable to such individual shall not exceed the greater of:
19
(a) $850;
20
(b) The sum of $300 and such individual’s earned income;
21
(6) Certain individuals not eligible for standard deduction.
22
In the case of:
23
(a) A married individual filing a separate return where either spouse itemizes deductions;
24
(b) Nonresident alien individual;
25
(c) An estate or trust;
26
The standard deduction shall be zero.
27
(7) Adjustments for inflation.
28
Each dollar amount contained in paragraphs (3), (4) and (5) shall be increased by an amount
29
equal to:
30
(a) Such dollar amount contained in paragraphs (3), (4) and (5) in the year 1988, multiplied
31
by
32
(b) The cost-of-living adjustment determined under section (J) with a base year of 1988.
33
(D)
Overall limitation on itemized deductions.
34
(1) General rule.

LC003264 - Page 7 of 19
1
In the case of an individual whose adjusted gross income as modified by § 44-30-12
2
exceeds the applicable amount, the amount of the itemized deductions otherwise allowable for the
3
taxable year shall be reduced by the lesser of:
4
(a) Three percent (3%) of the excess of adjusted gross income as modified by § 44-30-12
5
over the applicable amount; or
6
(b) Eighty percent (80%) of the amount of the itemized deductions otherwise allowable for
7
such taxable year.
8
(2) Applicable amount.
9
(a) In general.
10
For purposes of this section, the term “applicable amount” means $156,400 ($78,200 in the
11
case of a separate return by a married individual)
12
(b) Adjustments for inflation.
13
Each dollar amount contained in paragraph (a) shall be increased by an amount equal to:
14
(i) Such dollar amount contained in paragraph (a) in the year 1991, multiplied by
15
(ii) The cost-of-living adjustment determined under section (J) with a base year of 1991.
16
(3) Phase-out of Limitation.
17
(a) In general.
18
In the case of taxable year beginning after December 31, 2005, and before January 1, 2010,
19
the reduction under section (1) shall be equal to the applicable fraction of the amount which would
20
be the amount of such reduction.
21
(b) Applicable fraction.
22
For purposes of paragraph (a), the applicable fraction shall be determined in accordance
23
with the following table:
24
For taxable years beginning in calendar year The applicable fraction is
25
2006 and 2007 ⅔
26
2008 and 2009 ⅓
27
(E)
Exemption amount.
28
(1) In general.
29
Except as otherwise provided in this subsection, the term “exemption amount” means
30
$3,400.
31
(2) Exemption amount disallowed in case of certain dependents.
32
In the case of an individual with respect to whom a deduction under this section is allowable
33
to another taxpayer for the same taxable year, the exemption amount applicable to such individual
34
for such individual's taxable year shall be zero.

LC003264 - Page 8 of 19
1
(3) Adjustments for inflation.
2
The dollar amount contained in paragraph (1) shall be increased by an amount equal to:
3
(a) Such dollar amount contained in paragraph (1) in the year 1989, multiplied by
4
(b) The cost-of-living adjustment determined under section (J) with a base year of 1989.
5
(4) Limitation.
6
(a) In general.
7
In the case of any taxpayer whose adjusted gross income as modified for the taxable year
8
exceeds the threshold amount shall be reduced by the applicable percentage.
9
(b) Applicable percentage.
10
In the case of any taxpayer whose adjusted gross income for the taxable year exceeds the
11
threshold amount, the exemption amount shall be reduced by two (2) percentage points for each
12
$2,500 (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year
13
exceeds the threshold amount. In the case of a married individual filing a separate return, the
14
preceding sentence shall be applied by substituting “$1,250” for “$2,500.” In no event shall the
15
applicable percentage exceed one hundred percent (100%).
16
(c) Threshold Amount.
17
For the purposes of this paragraph, the term ‘‘threshold amount’’ shall be determined with
18
the following table:
19
Filing status Amount
20
Single $156,400
21
Married filing jointly of qualifying widow(er) $234,600
22
Married filing separately $117,300
23
Head of Household $195,500
24
(d) Adjustments for inflation.
25
Each dollar amount contained in paragraph (b) shall be increased by an amount equal to:
26
(i) Such dollar amount contained in paragraph (b) in the year 1991, multiplied by
27
(ii) The cost-of-living adjustment determined under section (J) with a base year of 1991.
28
(5) Phase-out of limitation.
29
(a) In general.
30
In the case of taxable years beginning after December 31, 2005, and before January 1,
31
2010, the reduction under section 4 shall be equal to the applicable fraction of the amount which
32
would be the amount of such reduction.
33
(b) Applicable fraction.
34
For the purposes of paragraph (a), the applicable fraction shall be determined in accordance

LC003264 - Page 9 of 19
1
with the following table:
2
For taxable years beginning in calendar year The applicable fraction is
3
2006 and 2007 ⅔
4
2008 and 2009 ⅓
5
(F)
Alternative minimum tax.
6
(1) General rule. There is hereby imposed (in addition to any other tax imposed by this
7
subtitle) a tax equal to the excess (if any) of:
8
(a) The tentative minimum tax for the taxable year, over
9
(b) The regular tax for the taxable year.
10
(2) The tentative minimum tax for the taxable year is the sum of:
11
(a) 6.5 percent of so much of the taxable excess as does not exceed $175,000, plus
12
(b) 7.0 percent of so much of the taxable excess above $175,000.
13
(3) The amount determined under the preceding sentence shall be reduced by the alternative
14
minimum tax foreign tax credit for the taxable year.
15
(4) Taxable excess. For the purposes of this subsection the term “taxable excess” means so
16
much of the federal alternative minimum taxable income as modified by the modifications in § 44-
17
30-12 as exceeds the exemption amount.
18
(5) In the case of a married individual filing a separate return, subparagraph (2) shall be
19
applied by substituting “$87,500” for $175,000 each place it appears.
20
(6) Exemption amount.
21
For purposes of this section "exemption amount" means:
22
Filing status Amount
23
Single $39,150
24
Married filing jointly or qualifying widow(er) $53,700
25
Married filing separately $26,850
26
Head of Household $39,150
27
Estate or trust $24,650
28
(7) Treatment of unearned income of minor children
29
(a) In general.
30
In the case of a minor child, the exemption amount for purposes of section (6) shall not
31
exceed the sum of:
32
(i) Such child's earned income, plus
33
(ii) $6,000.
34
(8) Adjustments for inflation.

LC003264 - Page 10 of 19
1
The dollar amount contained in paragraphs (6) and (7) shall be increased by an amount
2
equal to:
3
(a) Such dollar amount contained in paragraphs (6) and (7) in the year 2004, multiplied by
4
(b) The cost-of-living adjustment determined under section (J) with a base year of 2004.
5
(9) Phase-out.
6
(a) In general.
7
The exemption amount of any taxpayer shall be reduced (but not below zero) by an amount
8
equal to twenty-five percent (25%) of the amount by which alternative minimum taxable income
9
of the taxpayer exceeds the threshold amount.
10
(b) Threshold amount.
11
For purposes of this paragraph, the term “threshold amount” shall be determined with the
12
following table:
13
Filing status Amount
14
Single $123,250
15
Married filing jointly or qualifying widow(er) $164,350
16
Married filing separately $82,175
17
Head of Household $123,250
18
Estate or Trust $82,150
19
(c) Adjustments for inflation
20
Each dollar amount contained in paragraph (9) shall be increased by an amount equal to:
21
(i) Such dollar amount contained in paragraph (9) in the year 2004, multiplied by
22
(ii) The cost-of-living adjustment determined under section (J) with a base year of 2004.
23
(G)
Other Rhode Island taxes.
24
(1) General rule. There is hereby imposed (in addition to any other tax imposed by this
25
subtitle) a tax equal to twenty-five percent (25%) of:
26
(a) The Federal income tax on lump-sum distributions.
27
(b) The Federal income tax on parents' election to report child's interest and dividends.
28
(c) The recapture of Federal tax credits that were previously claimed on Rhode Island
29
return.
30
(H)
Tax for children under 18 with investment income.
31
(1) General rule. There is hereby imposed a tax equal to twenty-five percent (25%) of:
32
(a) The Federal tax for children under the age of 18 with investment income.
33
(I)
Averaging of farm income.
34
(1) General rule. At the election of an individual engaged in a farming business or fishing

LC003264 - Page 11 of 19
1
business, the tax imposed in section 2 shall be equal to twenty-five percent (25%) of:
2
(a) The Federal averaging of farm income as determined in IRC section 1301 [26 U.S.C. §
3
1301].
4
(J)
Cost-of-living adjustment.
5
(1) In general.
6
The cost-of-living adjustment for any calendar year is the percentage (if any) by which:
7
(a) The CPI for the preceding calendar year exceeds
8
(b) The CPI for the base year.
9
(2) CPI for any calendar year.
10
For purposes of paragraph (1), the CPI for any calendar year is the average of the consumer
11
price index as of the close of the twelve (12) month period ending on August 31 of such calendar
12
year.
13
(3) Consumer price index.
14
For purposes of paragraph (2), the term “consumer price index” means the last consumer
15
price index for all urban consumers published by the department of labor. For purposes of the
16
preceding sentence, the revision of the consumer price index that is most consistent with the
17
consumer price index for calendar year 1986 shall be used.
18
(4) Rounding.
19
(a) In general.
20
If any increase determined under paragraph (1) is not a multiple of $50, such increase shall
21
be rounded to the next lowest multiple of $50.
22
(b) In the case of a married individual filing a separate return, subparagraph (a) shall be
23
applied by substituting “$25” for $50 each place it appears.
24
(K)
Credits against tax.
For tax years beginning on or after January 1, 2001, a taxpayer
25
entitled to any of the following federal credits enacted prior to January 1, 1996, shall be entitled to
26
a credit against the Rhode Island tax imposed under this section:
27
(1) [Deleted by P.L. 2007, ch. 73, art. 7, § 5.]
28
(2) Child and dependent care credit;
29
(3) General business credits;
30
(4) Credit for elderly or the disabled;
31
(5) Credit for prior year minimum tax;
32
(6) Mortgage interest credit;
33
(7) Empowerment zone employment credit;
34
(8) Qualified electric vehicle credit.

LC003264 - Page 12 of 19
1
(L)
Credit against tax for adoption.
For tax years beginning on or after January 1, 2006,
2
a taxpayer entitled to the federal adoption credit shall be entitled to a credit against the Rhode Island
3
tax imposed under this section if the adopted child was under the care, custody, or supervision of
4
the Rhode Island department of children, youth and families prior to the adoption.
5
(M) The credit shall be twenty-five percent (25%) of the aforementioned federal credits
6
provided there shall be no deduction based on any federal credits enacted after January 1, 1996,
7
including the rate reduction credit provided by the federal Economic Growth and Tax
8
Reconciliation Act of 2001 (EGTRRA). In no event shall the tax imposed under this section be
9
reduced to less than zero. A taxpayer required to recapture any of the above credits for federal tax
10
purposes shall determine the Rhode Island amount to be recaptured in the same manner as
11
prescribed in this subsection.
12
(N)
Rhode Island earned-income credit.
13
(1) In general.
14
For tax years beginning before January 1, 2015, a taxpayer entitled to a federal earned-
15
income credit shall be allowed a Rhode Island earned-income credit equal to twenty-five percent
16
(25%) of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode
17
Island income tax.
18
For tax years beginning on or after January 1, 2015, and before January 1, 2016, a taxpayer
19
entitled to a federal earned-income credit shall be allowed a Rhode Island earned-income credit
20
equal to ten percent (10%) of the federal earned-income credit. Such credit shall not exceed the
21
amount of the Rhode Island income tax.
22
For tax years beginning on or after January 1, 2016, a taxpayer entitled to a federal earned-
23
income credit shall be allowed a Rhode Island earned-income credit equal to twelve and one-half
24
percent (12.5%) of the federal earned-income credit. Such credit shall not exceed the amount of the
25
Rhode Island income tax.
26
For tax years beginning on or after January 1, 2017, a taxpayer entitled to a federal earned-
27
income credit shall be allowed a Rhode Island earned-income credit equal to fifteen percent (15%)
28
of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island
29
income tax.
30
For tax years beginning on or after January 1, 2024, a taxpayer entitled to a federal earned-
31
income credit shall be allowed a Rhode Island earned-income credit equal to sixteen percent (16%)
32
of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island
33
income tax.
34
(2) Refundable portion.

LC003264 - Page 13 of 19
1
In the event the Rhode Island earned-income credit allowed under paragraph (N)(1) of this
2
section exceeds the amount of Rhode Island income tax, a refundable earned-income credit shall
3
be allowed as follows.
4
(i) For tax years beginning before January 1, 2015, for purposes of paragraph (2) refundable
5
earned-income credit means fifteen percent (15%) of the amount by which the Rhode Island earned-
6
income credit exceeds the Rhode Island income tax.
7
(ii) For tax years beginning on or after January 1, 2015, for purposes of paragraph (2)
8
refundable earned-income credit means one hundred percent (100%) of the amount by which the
9
Rhode Island earned-income credit exceeds the Rhode Island income tax.
10
(O) The tax administrator shall recalculate and submit necessary revisions to paragraphs
11
(A) through (J) to the general assembly no later than February 1, 2010, and every three (3) years
12
thereafter for inclusion in the statute.
13
(3) For the period January 1, 2011, through December 31, 2011, and thereafter, “Rhode
14
Island taxable income” means federal adjusted gross income as determined under the Internal
15
Revenue Code, 26 U.S.C. § 1 et seq., and as modified for Rhode Island purposes pursuant to § 44-
16
30-12 less the amount of Rhode Island Basic Standard Deduction allowed pursuant to subparagraph
17
44-30-2.6(c)(3)(B), and less the amount of personal exemption allowed pursuant to subparagraph
18
44-30-2.6(c)(3)(C).
19
(A)
Tax imposed.
20
(I) There is hereby imposed on the taxable income of married individuals filing joint
21
returns, qualifying widow(er), every head of household, unmarried individuals, married individuals
22
filing separate returns and bankruptcy estates, a tax determined in accordance with the following
23
table:
24
RI Taxable Income RI Income Tax
25
Over But not over Pay + % on Excess on the amount over
26
$ 0 - $ 55,000 $ 0 + 3.75% $ 0
27
55,000 - 125,000 2,063 + 4.75% 55,000
28
125,000 - 5,388 + 5.99% 125,000
29
(II) There is hereby imposed on the taxable income of an estate or trust a tax determined in
30
accordance with the following table:
31
RI Taxable Income RI Income Tax
32
Over But not over Pay + % on Excess on the amount over
33
$ 0 - $ 2,230 $ 0 + 3.75% $ 0
34
2,230 - 7,022 84 + 4.75% 2,230

LC003264 - Page 14 of 19
1
7,022 - 312 + 5.99% 7,022
2
(B)
Deductions:
3
(I) Rhode Island Basic Standard Deduction.
4
Only the Rhode Island standard deduction shall be allowed in accordance with the
5
following table:
6
Filing status: Amount
7
Single $7,500
8
Married filing jointly or qualifying widow(er) $15,000
9
Married filing separately $7,500
10
Head of Household $11,250
11
(II) Nonresident alien individuals, estates and trusts are not eligible for standard
12
deductions.
13
(III) In the case of any taxpayer whose adjusted gross income, as modified for Rhode Island
14
purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five thousand
15
dollars ($175,000), the standard deduction amount shall be reduced by the applicable percentage.
16
The term “applicable percentage” means twenty (20) percentage points for each five thousand
17
dollars ($5,000) (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable
18
year exceeds one hundred seventy-five thousand dollars ($175,000).
19
(C)
Exemption Amount:
20
(I) The term “exemption amount” means three thousand five hundred dollars ($3,500)
21
multiplied by the number of exemptions allowed for the taxable year for federal income tax
22
purposes. For tax years beginning on or after 2018, the term “exemption amount” means the same
23
as it does in 26 U.S.C. § 151 and 26 U.S.C. § 152 just prior to the enactment of the Tax Cuts and
24
Jobs Act (Pub. L. No. 115-97) on December 22, 2017.
25
(II) Exemption amount disallowed in case of certain dependents. In the case of an
26
individual with respect to whom a deduction under this section is allowable to another taxpayer for
27
the same taxable year, the exemption amount applicable to such individual for such individual’s
28
taxable year shall be zero.
29
(III) Identifying information required.
30
(1) Except as provided in § 44-30-2.6(c)(3)(C)(II) of this section, no exemption shall be
31
allowed under this section with respect to any individual unless the Taxpayer Identification Number
32
of such individual is included on the federal return claiming the exemption for the same tax filing
33
period.
34
(2) Notwithstanding the provisions of § 44-30-2.6(c)(3)(C)(I) of this section, in the event

LC003264 - Page 15 of 19
1
that the Taxpayer Identification Number for each individual is not required to be included on the
2
federal tax return for the purposes of claiming a personal exemption(s), then the Taxpayer
3
Identification Number must be provided on the Rhode Island tax return for the purpose of claiming
4
said exemption(s).
5
(D) In the case of any taxpayer whose adjusted gross income, as modified for Rhode Island
6
purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five thousand
7
dollars ($175,000), the exemption amount shall be reduced by the applicable percentage. The term
8
“applicable percentage” means twenty (20) percentage points for each five thousand dollars
9
($5,000) (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year
10
exceeds one hundred seventy-five thousand dollars ($175,000).
11
(E)
Adjustment for inflation.
The dollar amount contained in subparagraphs 44-30-
12
2.6(c)(3)(A), 44-30-2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) shall be increased annually by an amount
13
equal to:
14
(I) Such dollar amount contained in subparagraphs 44-30-2.6(c)(3)(A), 44-30-2.6(c)(3)(B)
15
and 44-30-2.6(c)(3)(C) adjusted for inflation using a base tax year of 2000, multiplied by;
16
(II) The cost-of-living adjustment with a base year of 2000.
17
(III) For the purposes of this section, the cost-of-living adjustment for any calendar year is
18
the percentage (if any) by which the consumer price index for the preceding calendar year exceeds
19
the consumer price index for the base year. The consumer price index for any calendar year is the
20
average of the consumer price index as of the close of the twelve-month (12) period ending on
21
August 31, of such calendar year.
22
(IV) For the purpose of this section the term “consumer price index” means the last
23
consumer price index for all urban consumers published by the department of labor. For the purpose
24
of this section the revision of the consumer price index that is most consistent with the consumer
25
price index for calendar year 1986 shall be used.
26
(V) If any increase determined under this section is not a multiple of fifty dollars ($50.00),
27
such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the case of a
28
married individual filing separate return, if any increase determined under this section is not a
29
multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower multiple
30
of twenty-five dollars ($25.00).
31
(F)
Credits against tax.
32
(I) Notwithstanding any other provisions of Rhode Island Law, for tax years beginning on
33
or after January 1, 2011, the only credits allowed against a tax imposed under this chapter shall be
34
as follows:

LC003264 - Page 16 of 19
1
(a) Rhode Island earned-income credit: Credit shall be allowed for earned-income credit
2
pursuant to subparagraph 44-30-2.6(c)(2)(N).
3
(b) Property Tax Relief Credit: Credit shall be allowed for property tax relief as provided
4
in § 44-33-1 et seq.
5
(c) Lead Paint Credit: Credit shall be allowed for residential lead abatement income tax
6
credit as provided in § 44-30.3-1 et seq.
7
(d) Credit for income taxes of other states. Credit shall be allowed for income tax paid to
8
other states pursuant to § 44-30-74.
9
(e) Historic Structures Tax Credit: Credit shall be allowed for historic structures tax credit
10
as provided in § 44-33.2-1 et seq.
11
(f) Motion Picture Productions Tax Credit: Credit shall be allowed for motion picture
12
production tax credit as provided in § 44-31.2-1 et seq.
13
(g) Child and Dependent Care: Credit shall be allowed for twenty-five percent (25%) of
14
the federal child and dependent care credit allowable for the taxable year for federal purposes;
15
provided, however, such credit shall not exceed the Rhode Island tax liability.
16
(h) Tax credits for contributions to Scholarship Organizations: Credit shall be allowed for
17
contributions to scholarship organizations as provided in chapter 62 of title 44.
18
(i) Credit for tax withheld. Wages upon which tax is required to be withheld shall be taxable
19
as if no withholding were required, but any amount of Rhode Island personal income tax actually
20
deducted and withheld in any calendar year shall be deemed to have been paid to the tax
21
administrator on behalf of the person from whom withheld, and the person shall be credited with
22
having paid that amount of tax for the taxable year beginning in that calendar year. For a taxable
23
year of less than twelve (12) months, the credit shall be made under regulations of the tax
24
administrator.
25
(j) Stay Invested in RI Wavemaker Fellowship: Credit shall be allowed for stay invested in
26
RI wavemaker fellowship program as provided in § 42-64.26-1 et seq.
27
(k) Rebuild Rhode Island: Credit shall be allowed for rebuild RI tax credit as provided in
28
§ 42-64.20-1 et seq.
29
(l) Rhode Island Qualified Jobs Incentive Program: Credit shall be allowed for Rhode
30
Island new qualified jobs incentive program credit as provided in § 44-48.3-1 et seq.
31
(m) Historic homeownership assistance act: Effective for tax year 2017 and thereafter,
32
unused carryforward for such credit previously issued shall be allowed for the historic
33
homeownership assistance act as provided in § 44-33.1-4. This allowance is for credits already
34
issued pursuant to § 44-33.1-4 and shall not be construed to authorize the issuance of new credits

LC003264 - Page 17 of 19
1
under the historic homeownership assistance act.
2

(n) Rhode Island family caregiver tax credit shall be allowed for family caregivers as
3
provided in chapter 30.4 of title 44.
4
(2) Except as provided in section 1 above, no other state and federal tax credit shall be
5
available to the taxpayers in computing tax liability under this chapter.
6
SECTION 4. This act shall take effect upon passage.
========
LC003264
========

LC003264 - Page 18 of 19
EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- THE RHODE ISLAND FAMILY CAREGIVER TAX CREDIT
ACT
***
1
This act would establish a tax credit against income tax based upon eligible expenditures
2
incurred by a family caregiver for the care and support of an eligible family member. The maximum
3
amount of the credit would be one thousand dollars ($1,000) and would apply to all tax years
4
beginning after December 31, 2026.
5
This act would take effect upon passage.
========
LC003264
========

LC003264 - Page 19 of 19