Establishes a tax credit against income tax based on eligible expenses incurred for care and support of an eligible family member.
Impact
The implementation of this tax credit could significantly impact the financial situation of many families in Rhode Island. By providing a credit based on eligible expenditures such as hiring home care aides or purchasing necessary medical equipment, the bill can aid in reducing the out-of-pocket costs that caregivers incur. The provisions of the bill indicate that this tax credit will be available for tax years beginning after December 31, 2024, demonstrating a commitment by the state to support families transitioning to support their loved ones at home.
Summary
House Bill 7490, also known as the Rhode Island Family Caregiver Tax Credit Act, aims to provide financial relief to family caregivers by establishing a state income tax credit. This credit will be available to individuals who incur eligible expenses related to the care and support of family members needing assistance with daily activities. The maximum amount of the credit is set at $1,000 and is designed to alleviate the financial burden that many caregivers face, which research indicates averages around $7,000 per year in out-of-pocket expenses.
Contention
Notable points of contention surrounding H7490 may include discussions regarding the qualifications for eligible family members, defining what constitutes eligible expenditures, and the potential budget impacts on the state's finances. As the bill specifies income thresholds for eligibility—less than $50,000 for individuals and $100,000 for couples—there may be debates on whether these thresholds adequately capture those most in need of assistance. Furthermore, the allocation of the credit among multiple caregivers for the same family member raises questions on equity and practicality.