2025 -- H 5233
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LC000964
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2025
____________
A N A C T
RELATING TO HUMAN SERVICES -- THE RHODE ISLAND FAMILY CAREGIVER TAX
CREDIT ACT
Introduced By: Representatives Donovan, Speakman, Cotter, Cortvriend, Spears,
Furtado, Edwards, Morales, Ajello, and Shallcross Smith
Date Introduced: January 29, 2025
Referred To: House Finance
It is enacted by the General Assembly as follows:
SECTION 1. Legislative findings. 1
The general assembly hereby makes the following findings. 2
(1) About eighty percent (80%) of care at home is provided by unpaid family caregivers, 3
many of whom are older persons providing care to a spouse or family member with disabilities. 4
(2) More than half of caregivers have intensive caregiving responsibilities that include 5
assisting with personal care activities such as bathing, feeding or toileting. 6
(3) Research shows that unpaid family caregivers are frequently under substantial physical, 7
psychological, and financial stress. 8
(4) On average unpaid family caregivers spend seven thousand dollars ($7,000) a year out-9
of-pocket to assist their family member to be able to live at home. 10
(5) Providing a state income tax credit for expenditures paid by family caregivers shall help 11
relieve some of the financial burden caregivers face in fulfilling their caregiving responsibilities. 12
SECTION 2. Title 40 of the General Laws entitled "HUMAN SERVICES" is hereby 13
amended by adding thereto the following chapter: 14
CHAPTER 8.11.5 15
THE RHODE ISLAND FAMILY CAREGIVER TAX CREDIT ACT 16
40-8.11.5-1. Short title. 17
This chapter shall be known and may be cited as "The Rhode Island Family Caregiver Tax 18
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Credit Act." 1
40-8.11.5-2. Definitions. 2
As used in this chapter, the following terms shall have the following meanings unless the 3
context clearly indicates otherwise: 4
(1) "Activities of daily living (ADL)" means and includes: 5
(i) Ambulating, which is the extent of an individual's ability to move from one position to 6
another and walk independently; 7
(ii) Feeding, which is the ability of an individual to feed oneself; 8
(iii) Dressing, which is the ability to select appropriate clothes and to put the clothes on 9
without aid; 10
(iv) Personal hygiene, which is the ability to bathe and groom oneself and maintain dental 11
hygiene and hair and nail care; 12
(v) Continence, which is the ability to control bladder and bowel function; and 13
(vi) Toileting, which is the ability to get to and from the toilet without aid, using it 14
appropriately, and cleaning oneself. 15
(2) "Eligible expenditure" means and includes: 16
(i) The improvement or alteration to the eligible family caregiver's or eligible family 17
member's primary residence to permit the eligible family member to live in the residence and to 18
remain mobile, safe and independent; 19
(ii) The eligible family caregiver's purchase or lease of equipment, including, but not 20
limited to, durable medical equipment, that is necessary to assist the eligible family member in 21
carrying out one or more activities of daily livings (ADL); and 22
(iii) Other paid or incurred expenses by the eligible family caregiver that assist the eligible 23
family caregiver in providing care to an eligible family member. These expenses include, but are 24
not limited to, the following: 25
(A) Hiring a home care aide; 26
(B) Temporary respite care; 27
(C) Adult day care; 28
(D) Personal care attendants; 29
(E) Health care equipment; and 30
(F) Technology. 31
(iv) The eligible expenditures shall be directly related to assisting the eligible family 32
caregiver in providing care to an eligible family member. Eligible expenditures shall not include 33
items or services that are reimbursable by the eligible family member's healthcare insurance 34
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including state and federal government insurance programs or the carrying out of general household 1
maintenance activities such as painting, plumbing, electrical repairs, or exterior maintenance. 2
(3) "Eligible family caregiver" means a resident taxpayer of the state who provides care 3
and support to an eligible family member and: 4
(i) Who has a federal adjusted gross income for the taxable year less than fifty thousand 5
dollars ($50,000) for an individual and less than one hundred thousand dollars ($100,00) for a 6
couple filing jointly; and 7
(ii) Who has personally incurred uncompensated expenses directly related to the care of an 8
eligible family member. 9
(4) "Eligible family member" means an individual who: 10
(i) Is sixty-five (65) years of age or older or has qualified for Social Security Disability 11
Benefits Insurance; 12
(ii) Resides with the eligible family caregiver at their permanent place of residence in the 13
state for not less than six (6) months of the taxable year; 14
(iii) Does not reside in an assisted living center, nursing facility, or residential care home; 15
(iv) Requires assistance with at least two (2) activities of daily living (ADL) certified by a 16
licensed health care provider; and 17
(v) Is a dependent, spouse, domestic partner, sibling, grandparent, grandchild, or is a 18
second degree relative. 19
40-8.11.5-3. Implementation. 20
(a) For taxable years beginning after December 31, 2025, there shall be allowed a credit 21
against the tax imposed pursuant to § 44-30-2.6 ("Rhode Island taxable income -- Rate of tax") in 22
the amount of fifty percent (50%) for eligible expenditures incurred by a family caregiver for the 23
care and support of an eligible family member. 24
(b) The maximum allowable credit authorized by this section shall be one thousand dollars 25
($1000). If two (2) or more family caregivers claim the tax credit for the same eligible family 26
member, the maximum allowable credit shall be allocated in equal amounts between each of the 27
family caregivers. 28
(c) The credit authorized under this section shall not be used to reduce the tax liability of 29
the taxpayer to less than zero. The credit shall not be carried over into a subsequent tax year. 30
(d) The department of revenue shall promulgate rules and regulations necessary to 31
implement and administer the credit authorized by this section. 32
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SECTION 3. Section 44-30-2.6 of the General Laws in Chapter 44-30 entitled "Personal 1
Income Tax" is hereby amended to read as follows: 2
44-30-2.6. Rhode Island taxable income — Rate of tax. 3
(a) “Rhode Island taxable income” means federal taxable income as determined under the 4
Internal Revenue Code, 26 U.S.C. § 1 et seq., not including the increase in the basic, standard-5
deduction amount for married couples filing joint returns as provided in the Jobs and Growth Tax 6
Relief Reconciliation Act of 2003 and the Economic Growth and Tax Relief Reconciliation Act of 7
2001 (EGTRRA), and as modified by the modifications in § 44-30-12. 8
(b) Notwithstanding the provisions of §§ 44-30-1 and 44-30-2, for tax years beginning on 9
or after January 1, 2001, a Rhode Island personal income tax is imposed upon the Rhode Island 10
taxable income of residents and nonresidents, including estates and trusts, at the rate of twenty-five 11
and one-half percent (25.5%) for tax year 2001, and twenty-five percent (25%) for tax year 2002 12
and thereafter of the federal income tax rates, including capital gains rates and any other special 13
rates for other types of income, except as provided in § 44-30-2.7, which were in effect immediately 14
prior to enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA); 15
provided, rate schedules shall be adjusted for inflation by the tax administrator beginning in taxable 16
year 2002 and thereafter in the manner prescribed for adjustment by the commissioner of Internal 17
Revenue in 26 U.S.C. § 1(f). However, for tax years beginning on or after January 1, 2006, a 18
taxpayer may elect to use the alternative flat tax rate provided in § 44-30-2.10 to calculate his or 19
her personal income tax liability. 20
(c) For tax years beginning on or after January 1, 2001, if a taxpayer has an alternative 21
minimum tax for federal tax purposes, the taxpayer shall determine if he or she has a Rhode Island 22
alternative minimum tax. The Rhode Island alternative minimum tax shall be computed by 23
multiplying the federal tentative minimum tax without allowing for the increased exemptions under 24
the Jobs and Growth Tax Relief Reconciliation Act of 2003 (as redetermined on federal form 6251 25
Alternative Minimum Tax-Individuals) by twenty-five and one-half percent (25.5%) for tax year 26
2001, and twenty-five percent (25%) for tax year 2002 and thereafter, and comparing the product 27
to the Rhode Island tax as computed otherwise under this section. The excess shall be the taxpayer’s 28
Rhode Island alternative minimum tax. 29
(1) For tax years beginning on or after January 1, 2005, and thereafter, the exemption 30
amount for alternative minimum tax, for Rhode Island purposes, shall be adjusted for inflation by 31
the tax administrator in the manner prescribed for adjustment by the commissioner of Internal 32
Revenue in 26 U.S.C. § 1(f). 33
(2) For the period January 1, 2007, through December 31, 2007, and thereafter, Rhode 34
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Island taxable income shall be determined by deducting from federal adjusted gross income as 1
defined in 26 U.S.C. § 62 as modified by the modifications in § 44-30-12 the Rhode Island 2
itemized-deduction amount and the Rhode Island exemption amount as determined in this section. 3
(A) Tax imposed. 4
(1) There is hereby imposed on the taxable income of married individuals filing joint 5
returns and surviving spouses a tax determined in accordance with the following table: 6
If taxable income is: The tax is: 7
Not over $53,150 3.75% of taxable income 8
Over $53,150 but not over $128,500 $1,993.13 plus 7.00% of the excess over $53,150 9
Over $128,500 but not over $195,850 $7,267.63 plus 7.75% of the excess over $128,500 10
Over $195,850 but not over $349,700 $12,487.25 plus 9.00% of the excess over $195,850 11
Over $349,700 $26,333.75 plus 9.90% of the excess over $349,700 12
(2) There is hereby imposed on the taxable income of every head of household a tax 13
determined in accordance with the following table: 14
If taxable income is: The tax is: 15
Not over $42,650 3.75% of taxable income 16
Over $42,650 but not over $110,100 $1,599.38 plus 7.00% of the excess over $42,650 17
Over $110,100 but not over $178,350 $6,320.88 plus 7.75% of the excess over $110,100 18
Over $178,350 but not over $349,700 $11,610.25 plus 9.00% of the excess over $178,350 19
Over $349,700 $27,031.75 plus 9.90% of the excess over $349,700 20
(3) There is hereby imposed on the taxable income of unmarried individuals (other than 21
surviving spouses and heads of households) a tax determined in accordance with the following 22
table: 23
If taxable income is: The tax is: 24
Not over $31,850 3.75% of taxable income 25
Over $31,850 but not over $77,100 $1,194.38 plus 7.00% of the excess over $31,850 26
Over $77,100 but not over $160,850 $4,361.88 plus 7.75% of the excess over $77,100 27
Over $160,850 but not over $349,700 $10,852.50 plus 9.00% of the excess over $160,850 28
Over $349,700 $27,849.00 plus 9.90% of the excess over $349,700 29
(4) There is hereby imposed on the taxable income of married individuals filing separate 30
returns and bankruptcy estates a tax determined in accordance with the following table: 31
If taxable income is: The tax is: 32
Not over $26,575 3.75% of taxable income 33
Over $26,575 but not over $64,250 $996.56 plus 7.00% of the excess over $26,575 34
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Over $64,250 but not over $97,925 $3,633.81 plus 7.75% of the excess over $64,250 1
Over $97,925 but not over $174,850 $6,243.63 plus 9.00% of the excess over $97,925 2
Over $174,850 $13,166.88 plus 9.90% of the excess over $174,850 3
(5) There is hereby imposed a taxable income of an estate or trust a tax determined in 4
accordance with the following table: 5
If taxable income is: The tax is: 6
Not over $2,150 3.75% of taxable income 7
Over $2,150 but not over $5,000 $80.63 plus 7.00% of the excess over $2,150 8
Over $5,000 but not over $7,650 $280.13 plus 7.75% of the excess over $5,000 9
Over $7,650 but not over $10,450 $485.50 plus 9.00% of the excess over $7,650 10
Over $10,450 $737.50 plus 9.90% of the excess over $10,450 11
(6) Adjustments for inflation. 12
The dollars amount contained in paragraph (A) shall be increased by an amount equal to: 13
(a) Such dollar amount contained in paragraph (A) in the year 1993, multiplied by; 14
(b) The cost-of-living adjustment determined under section (J) with a base year of 1993; 15
(c) The cost-of-living adjustment referred to in subparagraphs (a) and (b) used in making 16
adjustments to the nine percent (9%) and nine and nine tenths percent (9.9%) dollar amounts shall 17
be determined under section (J) by substituting “1994” for “1993.” 18
(B) Maximum capital gains rates. 19
(1) In general. 20
If a taxpayer has a net capital gain for tax years ending prior to January 1, 2010, the tax 21
imposed by this section for such taxable year shall not exceed the sum of: 22
(a) 2.5% of the net capital gain as reported for federal income tax purposes under section 23
26 U.S.C. § 1(h)(1)(a) and 26 U.S.C. § 1(h)(1)(b). 24
(b) 5% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. 25
§ 1(h)(1)(c). 26
(c) 6.25% of the net capital gain as reported for federal income tax purposes under 26 27
U.S.C. § 1(h)(1)(d). 28
(d) 7% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. 29
§ 1(h)(1)(e). 30
(2) For tax years beginning on or after January 1, 2010, the tax imposed on net capital gain 31
shall be determined under subdivision 44-30-2.6(c)(2)(A). 32
(C) Itemized deductions. 33
(1) In general. 34
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For the purposes of section (2), “itemized deductions” means the amount of federal 1
itemized deductions as modified by the modifications in § 44-30-12. 2
(2) Individuals who do not itemize their deductions. 3
In the case of an individual who does not elect to itemize his deductions for the taxable 4
year, they may elect to take a standard deduction. 5
(3) Basic standard deduction. 6
The Rhode Island standard deduction shall be allowed in accordance with the following 7
table: 8
Filing status Amount 9
Single $5,350 10
Married filing jointly or qualifying widow(er) $8,900 11
Married filing separately $4,450 12
Head of Household $7,850 13
(4) Additional standard deduction for the aged and blind. 14
An additional standard deduction shall be allowed for individuals age sixty-five (65) or 15
older or blind in the amount of $1,300 for individuals who are not married and $1,050 for 16
individuals who are married. 17
(5) Limitation on basic standard deduction in the case of certain dependents. 18
In the case of an individual to whom a deduction under section (E) is allowable to another 19
taxpayer, the basic standard deduction applicable to such individual shall not exceed the greater of: 20
(a) $850; 21
(b) The sum of $300 and such individual’s earned income; 22
(6) Certain individuals not eligible for standard deduction. 23
In the case of: 24
(a) A married individual filing a separate return where either spouse itemizes deductions; 25
(b) Nonresident alien individual; 26
(c) An estate or trust; 27
The standard deduction shall be zero. 28
(7) Adjustments for inflation. 29
Each dollar amount contained in paragraphs (3), (4) and (5) shall be increased by an amount 30
equal to: 31
(a) Such dollar amount contained in paragraphs (3), (4) and (5) in the year 1988, multiplied 32
by 33
(b) The cost-of-living adjustment determined under section (J) with a base year of 1988. 34
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(D) Overall limitation on itemized deductions. 1
(1) General rule. 2
In the case of an individual whose adjusted gross income as modified by § 44-30-12 3
exceeds the applicable amount, the amount of the itemized deductions otherwise allowable for the 4
taxable year shall be reduced by the lesser of: 5
(a) Three percent (3%) of the excess of adjusted gross income as modified by § 44-30-12 6
over the applicable amount; or 7
(b) Eighty percent (80%) of the amount of the itemized deductions otherwise allowable for 8
such taxable year. 9
(2) Applicable amount. 10
(a) In general. 11
For purposes of this section, the term “applicable amount” means $156,400 ($78,200 in the 12
case of a separate return by a married individual) 13
(b) Adjustments for inflation. 14
Each dollar amount contained in paragraph (a) shall be increased by an amount equal to: 15
(i) Such dollar amount contained in paragraph (a) in the year 1991, multiplied by 16
(ii) The cost-of-living adjustment determined under section (J) with a base year of 1991. 17
(3) Phase-out of Limitation. 18
(a) In general. 19
In the case of taxable year beginning after December 31, 2005, and before January 1, 2010, 20
the reduction under section (1) shall be equal to the applicable fraction of the amount which would 21
be the amount of such reduction. 22
(b) Applicable fraction. 23
For purposes of paragraph (a), the applicable fraction shall be determined in accordance 24
with the following table: 25
For taxable years beginning in calendar year The applicable fraction is 26
2006 and 2007 ⅔ 27
2008 and 2009 ⅓ 28
(E) Exemption amount. 29
(1) In general. 30
Except as otherwise provided in this subsection, the term “exemption amount” means 31
$3,400. 32
(2) Exemption amount disallowed in case of certain dependents. 33
In the case of an individual with respect to whom a deduction under this section is allowable 34
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to another taxpayer for the same taxable year, the exemption amount applicable to such individual 1
for such individual's taxable year shall be zero. 2
(3) Adjustments for inflation. 3
The dollar amount contained in paragraph (1) shall be increased by an amount equal to: 4
(a) Such dollar amount contained in paragraph (1) in the year 1989, multiplied by 5
(b) The cost-of-living adjustment determined under section (J) with a base year of 1989. 6
(4) Limitation. 7
(a) In general. 8
In the case of any taxpayer whose adjusted gross income as modified for the taxable year 9
exceeds the threshold amount shall be reduced by the applicable percentage. 10
(b) Applicable percentage. 11
In the case of any taxpayer whose adjusted gross income for the taxable year exceeds the 12
threshold amount, the exemption amount shall be reduced by two (2) percentage points for each 13
$2,500 (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year 14
exceeds the threshold amount. In the case of a married individual filing a separate return, the 15
preceding sentence shall be applied by substituting “$1,250” for “$2,500.” In no event shall the 16
applicable percentage exceed one hundred percent (100%). 17
(c) Threshold Amount. 18
For the purposes of this paragraph, the term ‘‘threshold amount’’ shall be determined with 19
the following table: 20
Filing status Amount 21
Single $156,400 22
Married filing jointly of qualifying widow(er) $234,600 23
Married filing separately $117,300 24
Head of Household $195,500 25
(d) Adjustments for inflation. 26
Each dollar amount contained in paragraph (b) shall be increased by an amount equal to: 27
(i) Such dollar amount contained in paragraph (b) in the year 1991, multiplied by 28
(ii) The cost-of-living adjustment determined under section (J) with a base year of 1991. 29
(5) Phase-out of limitation. 30
(a) In general. 31
In the case of taxable years beginning after December 31, 2005, and before January 1, 32
2010, the reduction under section 4 shall be equal to the applicable fraction of the amount which 33
would be the amount of such reduction. 34
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(b) Applicable fraction. 1
For the purposes of paragraph (a), the applicable fraction shall be determined in accordance 2
with the following table: 3
For taxable years beginning in calendar year The applicable fraction is 4
2006 and 2007 ⅔ 5
2008 and 2009 ⅓ 6
(F) Alternative minimum tax. 7
(1) General rule. There is hereby imposed (in addition to any other tax imposed by this 8
subtitle) a tax equal to the excess (if any) of: 9
(a) The tentative minimum tax for the taxable year, over 10
(b) The regular tax for the taxable year. 11
(2) The tentative minimum tax for the taxable year is the sum of: 12
(a) 6.5 percent of so much of the taxable excess as does not exceed $175,000, plus 13
(b) 7.0 percent of so much of the taxable excess above $175,000. 14
(3) The amount determined under the preceding sentence shall be reduced by the alternative 15
minimum tax foreign tax credit for the taxable year. 16
(4) Taxable excess. For the purposes of this subsection the term “taxable excess” means so 17
much of the federal alternative minimum taxable income as modified by the modifications in § 44-18
30-12 as exceeds the exemption amount. 19
(5) In the case of a married individual filing a separate return, subparagraph (2) shall be 20
applied by substituting “$87,500” for $175,000 each place it appears. 21
(6) Exemption amount. 22
For purposes of this section "exemption amount" means: 23
Filing status Amount 24
Single $39,150 25
Married filing jointly or qualifying widow(er) $53,700 26
Married filing separately $26,850 27
Head of Household $39,150 28
Estate or trust $24,650 29
(7) Treatment of unearned income of minor children 30
(a) In general. 31
In the case of a minor child, the exemption amount for purposes of section (6) shall not 32
exceed the sum of: 33
(i) Such child's earned income, plus 34
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(ii) $6,000. 1
(8) Adjustments for inflation. 2
The dollar amount contained in paragraphs (6) and (7) shall be increased by an amount 3
equal to: 4
(a) Such dollar amount contained in paragraphs (6) and (7) in the year 2004, multiplied by 5
(b) The cost-of-living adjustment determined under section (J) with a base year of 2004. 6
(9) Phase-out. 7
(a) In general. 8
The exemption amount of any taxpayer shall be reduced (but not below zero) by an amount 9
equal to twenty-five percent (25%) of the amount by which alternative minimum taxable income 10
of the taxpayer exceeds the threshold amount. 11
(b) Threshold amount. 12
For purposes of this paragraph, the term “threshold amount” shall be determined with the 13
following table: 14
Filing status Amount 15
Single $123,250 16
Married filing jointly or qualifying widow(er) $164,350 17
Married filing separately $82,175 18
Head of Household $123,250 19
Estate or Trust $82,150 20
(c) Adjustments for inflation 21
Each dollar amount contained in paragraph (9) shall be increased by an amount equal to: 22
(i) Such dollar amount contained in paragraph (9) in the year 2004, multiplied by 23
(ii) The cost-of-living adjustment determined under section (J) with a base year of 2004. 24
(G) Other Rhode Island taxes. 25
(1) General rule. There is hereby imposed (in addition to any other tax imposed by this 26
subtitle) a tax equal to twenty-five percent (25%) of: 27
(a) The Federal income tax on lump-sum distributions. 28
(b) The Federal income tax on parents' election to report child's interest and dividends. 29
(c) The recapture of Federal tax credits that were previously claimed on Rhode Island 30
return. 31
(H) Tax for children under 18 with investment income. 32
(1) General rule. There is hereby imposed a tax equal to twenty-five percent (25%) of: 33
(a) The Federal tax for children under the age of 18 with investment income. 34
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(I) Averaging of farm income. 1
(1) General rule. At the election of an individual engaged in a farming business or fishing 2
business, the tax imposed in section 2 shall be equal to twenty-five percent (25%) of: 3
(a) The Federal averaging of farm income as determined in IRC section 1301 [26 U.S.C. § 4
1301]. 5
(J) Cost-of-living adjustment. 6
(1) In general. 7
The cost-of-living adjustment for any calendar year is the percentage (if any) by which: 8
(a) The CPI for the preceding calendar year exceeds 9
(b) The CPI for the base year. 10
(2) CPI for any calendar year. 11
For purposes of paragraph (1), the CPI for any calendar year is the average of the consumer 12
price index as of the close of the twelve (12) month period ending on August 31 of such calendar 13
year. 14
(3) Consumer price index. 15
For purposes of paragraph (2), the term “consumer price index” means the last consumer 16
price index for all urban consumers published by the department of labor. For purposes of the 17
preceding sentence, the revision of the consumer price index that is most consistent with the 18
consumer price index for calendar year 1986 shall be used. 19
(4) Rounding. 20
(a) In general. 21
If any increase determined under paragraph (1) is not a multiple of $50, such increase shall 22
be rounded to the next lowest multiple of $50. 23
(b) In the case of a married individual filing a separate return, subparagraph (a) shall be 24
applied by substituting “$25” for $50 each place it appears. 25
(K) Credits against tax. For tax years beginning on or after January 1, 2001, a taxpayer 26
entitled to any of the following federal credits enacted prior to January 1, 1996, shall be entitled to 27
a credit against the Rhode Island tax imposed under this section: 28
(1) [Deleted by P.L. 2007, ch. 73, art. 7, § 5.] 29
(2) Child and dependent care credit; 30
(3) General business credits; 31
(4) Credit for elderly or the disabled; 32
(5) Credit for prior year minimum tax; 33
(6) Mortgage interest credit; 34
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(7) Empowerment zone employment credit; 1
(8) Qualified electric vehicle credit. 2
(L) Credit against tax for adoption. For tax years beginning on or after January 1, 2006, 3
a taxpayer entitled to the federal adoption credit shall be entitled to a credit against the Rhode Island 4
tax imposed under this section if the adopted child was under the care, custody, or supervision of 5
the Rhode Island department of children, youth and families prior to the adoption. 6
(M) The credit shall be twenty-five percent (25%) of the aforementioned federal credits 7
provided there shall be no deduction based on any federal credits enacted after January 1, 1996, 8
including the rate reduction credit provided by the federal Economic Growth and Tax 9
Reconciliation Act of 2001 (EGTRRA). In no event shall the tax imposed under this section be 10
reduced to less than zero. A taxpayer required to recapture any of the above credits for federal tax 11
purposes shall determine the Rhode Island amount to be recaptured in the same manner as 12
prescribed in this subsection. 13
(N) Rhode Island earned-income credit. 14
(1) In general. 15
For tax years beginning before January 1, 2015, a taxpayer entitled to a federal earned-16
income credit shall be allowed a Rhode Island earned-income credit equal to twenty-five percent 17
(25%) of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode 18
Island income tax. 19
For tax years beginning on or after January 1, 2015, and before January 1, 2016, a taxpayer 20
entitled to a federal earned-income credit shall be allowed a Rhode Island earned-income credit 21
equal to ten percent (10%) of the federal earned-income credit. Such credit shall not exceed the 22
amount of the Rhode Island income tax. 23
For tax years beginning on or after January 1, 2016, a taxpayer entitled to a federal earned-24
income credit shall be allowed a Rhode Island earned-income credit equal to twelve and one-half 25
percent (12.5%) of the federal earned-income credit. Such credit shall not exceed the amount of the 26
Rhode Island income tax. 27
For tax years beginning on or after January 1, 2017, a taxpayer entitled to a federal earned-28
income credit shall be allowed a Rhode Island earned-income credit equal to fifteen percent (15%) 29
of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island 30
income tax. 31
For tax years beginning on or after January 1, 2024, a taxpayer entitled to a federal earned-32
income credit shall be allowed a Rhode Island earned-income credit equal to sixteen percent (16%) 33
of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island 34
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income tax. 1
(2) Refundable portion. 2
In the event the Rhode Island earned-income credit allowed under paragraph (N)(1) of this 3
section exceeds the amount of Rhode Island income tax, a refundable earned-income credit shall 4
be allowed as follows. 5
(i) For tax years beginning before January 1, 2015, for purposes of paragraph (2) refundable 6
earned-income credit means fifteen percent (15%) of the amount by which the Rhode Island earned-7
income credit exceeds the Rhode Island income tax. 8
(ii) For tax years beginning on or after January 1, 2015, for purposes of paragraph (2) 9
refundable earned-income credit means one hundred percent (100%) of the amount by which the 10
Rhode Island earned-income credit exceeds the Rhode Island income tax. 11
(O) The tax administrator shall recalculate and submit necessary revisions to paragraphs 12
(A) through (J) to the general assembly no later than February 1, 2010, and every three (3) years 13
thereafter for inclusion in the statute. 14
(3) For the period January 1, 2011, through December 31, 2011, and thereafter, “Rhode 15
Island taxable income” means federal adjusted gross income as determined under the Internal 16
Revenue Code, 26 U.S.C. § 1 et seq., and as modified for Rhode Island purposes pursuant to § 44-17
30-12 less the amount of Rhode Island Basic Standard Deduction allowed pursuant to subparagraph 18
44-30-2.6(c)(3)(B), and less the amount of personal exemption allowed pursuant to subparagraph 19
44-30-2.6(c)(3)(C). 20
(A) Tax imposed. 21
(I) There is hereby imposed on the taxable income of married individuals filing joint 22
returns, qualifying widow(er), every head of household, unmarried individuals, married individuals 23
filing separate returns and bankruptcy estates, a tax determined in accordance with the following 24
table: 25
RI Taxable Income RI Income Tax 26
Over But not over Pay + % on Excess on the amount over 27
$ 0 - $ 55,000 $ 0 + 3.75% $ 0 28
55,000 - 125,000 2,063 + 4.75% 55,000 29
125,000 - 5,388 + 5.99% 125,000 30
(II) There is hereby imposed on the taxable income of an estate or trust a tax determined in 31
accordance with the following table: 32
RI Taxable Income RI Income Tax 33
Over But not over Pay + % on Excess on the amount over 34
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$ 0 - $ 2,230 $ 0 + 3.75% $ 0 1
2,230 - 7,022 84 + 4.75% 2,230 2
7,022 - 312 + 5.99% 7,022 3
(B) Deductions: 4
(I) Rhode Island Basic Standard Deduction. 5
Only the Rhode Island standard deduction shall be allowed in accordance with the 6
following table: 7
Filing status: Amount 8
Single $7,500 9
Married filing jointly or qualifying widow(er) $15,000 10
Married filing separately $7,500 11
Head of Household $11,250 12
(II) Nonresident alien individuals, estates and trusts are not eligible for standard 13
deductions. 14
(III) In the case of any taxpayer whose adjusted gross income, as modified for Rhode Island 15
purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five thousand 16
dollars ($175,000), the standard deduction amount shall be reduced by the applicable percentage. 17
The term “applicable percentage” means twenty (20) percentage points for each five thousand 18
dollars ($5,000) (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable 19
year exceeds one hundred seventy-five thousand dollars ($175,000). 20
(C) Exemption Amount: 21
(I) The term “exemption amount” means three thousand five hundred dollars ($3,500) 22
multiplied by the number of exemptions allowed for the taxable year for federal income tax 23
purposes. For tax years beginning on or after 2018, the term “exemption amount” means the same 24
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 25
Jobs Act (Pub. L. No. 115-97) on December 22, 2017. 26
(II) Exemption amount disallowed in case of certain dependents. In the case of an 27
individual with respect to whom a deduction under this section is allowable to another taxpayer for 28
the same taxable year, the exemption amount applicable to such individual for such individual’s 29
taxable year shall be zero. 30
(III) Identifying information required. 31
(1) Except as provided in § 44-30-2.6(c)(3)(C)(II) of this section, no exemption shall be 32
allowed under this section with respect to any individual unless the Taxpayer Identification Number 33
of such individual is included on the federal return claiming the exemption for the same tax filing 34
LC000964 - Page 16 of 19
period. 1
(2) Notwithstanding the provisions of § 44-30-2.6(c)(3)(C)(I) of this section, in the event 2
that the Taxpayer Identification Number for each individual is not required to be included on the 3
federal tax return for the purposes of claiming a personal exemption(s), then the Taxpayer 4
Identification Number must be provided on the Rhode Island tax return for the purpose of claiming 5
said exemption(s). 6
(D) In the case of any taxpayer whose adjusted gross income, as modified for Rhode Island 7
purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five thousand 8
dollars ($175,000), the exemption amount shall be reduced by the applicable percentage. The term 9
“applicable percentage” means twenty (20) percentage points for each five thousand dollars 10
($5,000) (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year 11
exceeds one hundred seventy-five thousand dollars ($175,000). 12
(E) Adjustment for inflation. The dollar amount contained in subparagraphs 44-30-13
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 14
equal to: 15
(I) Such dollar amount contained in subparagraphs 44-30-2.6(c)(3)(A), 44-30-2.6(c)(3)(B) 16
and 44-30-2.6(c)(3)(C) adjusted for inflation using a base tax year of 2000, multiplied by; 17
(II) The cost-of-living adjustment with a base year of 2000. 18
(III) For the purposes of this section, the cost-of-living adjustment for any calendar year is 19
the percentage (if any) by which the consumer price index for the preceding calendar year exceeds 20
the consumer price index for the base year. The consumer price index for any calendar year is the 21
average of the consumer price index as of the close of the twelve-month (12) period ending on 22
August 31, of such calendar year. 23
(IV) For the purpose of this section the term “consumer price index” means the last 24
consumer price index for all urban consumers published by the department of labor. For the purpose 25
of this section the revision of the consumer price index that is most consistent with the consumer 26
price index for calendar year 1986 shall be used. 27
(V) If any increase determined under this section is not a multiple of fifty dollars ($50.00), 28
such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the case of a 29
married individual filing separate return, if any increase determined under this section is not a 30
multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower multiple 31
of twenty-five dollars ($25.00). 32
(F) Credits against tax. 33
(I) Notwithstanding any other provisions of Rhode Island Law, for tax years beginning on 34
LC000964 - Page 17 of 19
or after January 1, 2011, the only credits allowed against a tax imposed under this chapter shall be 1
as follows: 2
(a) Rhode Island earned-income credit: Credit shall be allowed for earned-income credit 3
pursuant to subparagraph 44-30-2.6(c)(2)(N). 4
(b) Property Tax Relief Credit: Credit shall be allowed for property tax relief as provided 5
in § 44-33-1 et seq. 6
(c) Lead Paint Credit: Credit shall be allowed for residential lead abatement income tax 7
credit as provided in § 44-30.3-1 et seq. 8
(d) Credit for income taxes of other states. Credit shall be allowed for income tax paid to 9
other states pursuant to § 44-30-74. 10
(e) Historic Structures Tax Credit: Credit shall be allowed for historic structures tax credit 11
as provided in § 44-33.2-1 et seq. 12
(f) Motion Picture Productions Tax Credit: Credit shall be allowed for motion picture 13
production tax credit as provided in § 44-31.2-1 et seq. 14
(g) Child and Dependent Care: Credit shall be allowed for twenty-five percent (25%) of 15
the federal child and dependent care credit allowable for the taxable year for federal purposes; 16
provided, however, such credit shall not exceed the Rhode Island tax liability. 17
(h) Tax credits for contributions to Scholarship Organizations: Credit shall be allowed for 18
contributions to scholarship organizations as provided in chapter 62 of title 44. 19
(i) Credit for tax withheld. Wages upon which tax is required to be withheld shall be taxable 20
as if no withholding were required, but any amount of Rhode Island personal income tax actually 21
deducted and withheld in any calendar year shall be deemed to have been paid to the tax 22
administrator on behalf of the person from whom withheld, and the person shall be credited with 23
having paid that amount of tax for the taxable year beginning in that calendar year. For a taxable 24
year of less than twelve (12) months, the credit shall be made under regulations of the tax 25
administrator. 26
(j) Stay Invested in RI Wavemaker Fellowship: Credit shall be allowed for stay invested in 27
RI wavemaker fellowship program as provided in § 42-64.26-1 et seq. 28
(k) Rebuild Rhode Island: Credit shall be allowed for rebuild RI tax credit as provided in 29
§ 42-64.20-1 et seq. 30
(l) Rhode Island Qualified Jobs Incentive Program: Credit shall be allowed for Rhode 31
Island new qualified jobs incentive program credit as provided in § 44-48.3-1 et seq. 32
(m) Historic homeownership assistance act: Effective for tax year 2017 and thereafter, 33
unused carryforward for such credit previously issued shall be allowed for the historic 34
LC000964 - Page 18 of 19
homeownership assistance act as provided in § 44-33.1-4. This allowance is for credits already 1
issued pursuant to § 44-33.1-4 and shall not be construed to authorize the issuance of new credits 2
under the historic homeownership assistance act. 3
(n) Rhode Island family caregiver tax credit shall be allowed for family caregivers as 4
provided in chapter 8.11.5 of title 40. 5
(2) Except as provided in section 1 above, no other state and federal tax credit shall be 6
available to the taxpayers in computing tax liability under this chapter. 7
SECTION 4. This act shall take effect upon passage. 8
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO HUMAN SERVICES -- THE RHODE ISLAND FAMILY CAREGIVER TAX
CREDIT ACT
***
This act would establish a tax credit against income tax based upon eligible expenditures 1
incurred by a family caregiver for the care and support of an eligible family member. The maximum 2
amount of the credit would be one thousand dollars ($1,000) and would apply to all tax years 3
beginning after December 31, 2025. 4
This act would take effect upon passage. 5
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