Rhode Island House Bill H5233

Rhode Island 2025 Regular Session

• Introduced: 1/29/25
• Refer: 1/29/25

Caption

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

Impact

The potential impact of H5233 on state laws is significant as it establishes a specific tax credit framework that legitimizes and acknowledges the role of family caregivers. By providing financial support, the bill encourages families to care for their elderly or disabled members at home, contributing positively to their quality of life while also potentially reducing the burden on formal healthcare systems. The inclusion of a wide range of eligible expenditures in the bill is intended to cover various aspects of caregiving, supporting caregivers in multiple ways as they navigate the challenges of their responsibilities.

Summary

House Bill H5233, known as 'The Rhode Island Family Caregiver Tax Credit Act', aims to provide financial relief to family caregivers who shoulder the majority of caregiving responsibilities in their homes. The legislation recognizes that about 80% of care at home is provided by unpaid family caregivers, many of whom incur significant out-of-pocket expenses. By introducing a tax credit for eligible expenditures related to the care and support of family members, this bill seeks to ease the financial stress experienced by caregivers. The maximum allowable credit is set at $1,000 for qualifying expenses, which can include home care aides, medical equipment, and necessary alterations to the home to assist individuals with disabilities or age-related challenges.

Contention

While the bill presents benefits to caregivers, there could be points of contention regarding eligibility criteria, the definition of eligible expenses, and potential fiscal impacts on the state's budget. Concerns may arise about ensuring that the program is adequately funded and that it does not encourage unwanted financial or logistical burdens on families who might not be able to cope with the demands of caregiving. Additionally, there might be discussions about the adequacy of the credit amount versus escalating caregiving costs, and whether it is sufficient to attract broader support among caregivers and healthcare advocates.