Rhode Island 2025 Regular Session

Rhode Island House Bill H5233 Compare Versions

Only one version of the bill is available at this time.

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5	5	2025 -- H 5233
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7	7	LC000964
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO HUMAN SERVICES -- THE RHODE ISLAND FAMILY CAREGIVER TAX
16	16	CREDIT ACT
17	17	Introduced By: Representatives Donovan, Speakman, Cotter, Cortvriend, Spears,
18	18	Furtado, Edwards, Morales, Ajello, and Shallcross Smith
19	19	Date Introduced: January 29, 2025
20	20	Referred To: House Finance
21	21
22	22
23	23	It is enacted by the General Assembly as follows:
24	24	SECTION 1. Legislative findings. 1
25	25	The general assembly hereby makes the following findings. 2
26	26	(1) About eighty percent (80%) of care at home is provided by unpaid family caregivers, 3
27	27	many of whom are older persons providing care to a spouse or family member with disabilities. 4
28	28	(2) More than half of caregivers have intensive caregiving responsibilities that include 5
29	29	assisting with personal care activities such as bathing, feeding or toileting. 6
30	30	(3) Research shows that unpaid family caregivers are frequently under substantial physical, 7
31	31	psychological, and financial stress. 8
32	32	(4) On average unpaid family caregivers spend seven thousand dollars ($7,000) a year out-9
33	33	of-pocket to assist their family member to be able to live at home. 10
34	34	(5) Providing a state income tax credit for expenditures paid by family caregivers shall help 11
35	35	relieve some of the financial burden caregivers face in fulfilling their caregiving responsibilities. 12
36	36	SECTION 2. Title 40 of the General Laws entitled "HUMAN SERVICES" is hereby 13
37	37	amended by adding thereto the following chapter: 14
38	38	CHAPTER 8.11.5 15
39	39	THE RHODE ISLAND FAMILY CAREGIVER TAX CREDIT ACT 16
40	40	40-8.11.5-1. Short title. 17
41	41	This chapter shall be known and may be cited as "The Rhode Island Family Caregiver Tax 18
42	42
43	43
44	44	LC000964 - Page 2 of 19
45	45	Credit Act." 1
46	46	40-8.11.5-2. Definitions. 2
47	47	As used in this chapter, the following terms shall have the following meanings unless the 3
48	48	context clearly indicates otherwise: 4
49	49	(1) "Activities of daily living (ADL)" means and includes: 5
50	50	(i) Ambulating, which is the extent of an individual's ability to move from one position to 6
51	51	another and walk independently; 7
52	52	(ii) Feeding, which is the ability of an individual to feed oneself; 8
53	53	(iii) Dressing, which is the ability to select appropriate clothes and to put the clothes on 9
54	54	without aid; 10
55	55	(iv) Personal hygiene, which is the ability to bathe and groom oneself and maintain dental 11
56	56	hygiene and hair and nail care; 12
57	57	(v) Continence, which is the ability to control bladder and bowel function; and 13
58	58	(vi) Toileting, which is the ability to get to and from the toilet without aid, using it 14
59	59	appropriately, and cleaning oneself. 15
60	60	(2) "Eligible expenditure" means and includes: 16
61	61	(i) The improvement or alteration to the eligible family caregiver's or eligible family 17
62	62	member's primary residence to permit the eligible family member to live in the residence and to 18
63	63	remain mobile, safe and independent; 19
64	64	(ii) The eligible family caregiver's purchase or lease of equipment, including, but not 20
65	65	limited to, durable medical equipment, that is necessary to assist the eligible family member in 21
66	66	carrying out one or more activities of daily livings (ADL); and 22
67	67	(iii) Other paid or incurred expenses by the eligible family caregiver that assist the eligible 23
68	68	family caregiver in providing care to an eligible family member. These expenses include, but are 24
69	69	not limited to, the following: 25
70	70	(A) Hiring a home care aide; 26
71	71	(B) Temporary respite care; 27
72	72	(C) Adult day care; 28
73	73	(D) Personal care attendants; 29
74	74	(E) Health care equipment; and 30
75	75	(F) Technology. 31
76	76	(iv) The eligible expenditures shall be directly related to assisting the eligible family 32
77	77	caregiver in providing care to an eligible family member. Eligible expenditures shall not include 33
78	78	items or services that are reimbursable by the eligible family member's healthcare insurance 34
79	79
80	80
81	81	LC000964 - Page 3 of 19
82	82	including state and federal government insurance programs or the carrying out of general household 1
83	83	maintenance activities such as painting, plumbing, electrical repairs, or exterior maintenance. 2
84	84	(3) "Eligible family caregiver" means a resident taxpayer of the state who provides care 3
85	85	and support to an eligible family member and: 4
86	86	(i) Who has a federal adjusted gross income for the taxable year less than fifty thousand 5
87	87	dollars ($50,000) for an individual and less than one hundred thousand dollars ($100,00) for a 6
88	88	couple filing jointly; and 7
89	89	(ii) Who has personally incurred uncompensated expenses directly related to the care of an 8
90	90	eligible family member. 9
91	91	(4) "Eligible family member" means an individual who: 10
92	92	(i) Is sixty-five (65) years of age or older or has qualified for Social Security Disability 11
93	93	Benefits Insurance; 12
94	94	(ii) Resides with the eligible family caregiver at their permanent place of residence in the 13
95	95	state for not less than six (6) months of the taxable year; 14
96	96	(iii) Does not reside in an assisted living center, nursing facility, or residential care home; 15
97	97	(iv) Requires assistance with at least two (2) activities of daily living (ADL) certified by a 16
98	98	licensed health care provider; and 17
99	99	(v) Is a dependent, spouse, domestic partner, sibling, grandparent, grandchild, or is a 18
100	100	second degree relative. 19
101	101	40-8.11.5-3. Implementation. 20
102	102	(a) For taxable years beginning after December 31, 2025, there shall be allowed a credit 21
103	103	against the tax imposed pursuant to § 44-30-2.6 ("Rhode Island taxable income -- Rate of tax") in 22
104	104	the amount of fifty percent (50%) for eligible expenditures incurred by a family caregiver for the 23
105	105	care and support of an eligible family member. 24
106	106	(b) The maximum allowable credit authorized by this section shall be one thousand dollars 25
107	107	($1000). If two (2) or more family caregivers claim the tax credit for the same eligible family 26
108	108	member, the maximum allowable credit shall be allocated in equal amounts between each of the 27
109	109	family caregivers. 28
110	110	(c) The credit authorized under this section shall not be used to reduce the tax liability of 29
111	111	the taxpayer to less than zero. The credit shall not be carried over into a subsequent tax year. 30
112	112	(d) The department of revenue shall promulgate rules and regulations necessary to 31
113	113	implement and administer the credit authorized by this section. 32
114	114
115	115
116	116	LC000964 - Page 4 of 19
117	117	SECTION 3. Section 44-30-2.6 of the General Laws in Chapter 44-30 entitled "Personal 1
118	118	Income Tax" is hereby amended to read as follows: 2
119	119	44-30-2.6. Rhode Island taxable income — Rate of tax. 3
120	120	(a) “Rhode Island taxable income” means federal taxable income as determined under the 4
121	121	Internal Revenue Code, 26 U.S.C. § 1 et seq., not including the increase in the basic, standard-5
122	122	deduction amount for married couples filing joint returns as provided in the Jobs and Growth Tax 6
123	123	Relief Reconciliation Act of 2003 and the Economic Growth and Tax Relief Reconciliation Act of 7
124	124	2001 (EGTRRA), and as modified by the modifications in § 44-30-12. 8
125	125	(b) Notwithstanding the provisions of §§ 44-30-1 and 44-30-2, for tax years beginning on 9
126	126	or after January 1, 2001, a Rhode Island personal income tax is imposed upon the Rhode Island 10
127	127	taxable income of residents and nonresidents, including estates and trusts, at the rate of twenty-five 11
128	128	and one-half percent (25.5%) for tax year 2001, and twenty-five percent (25%) for tax year 2002 12
129	129	and thereafter of the federal income tax rates, including capital gains rates and any other special 13
130	130	rates for other types of income, except as provided in § 44-30-2.7, which were in effect immediately 14
131	131	prior to enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA); 15
132	132	provided, rate schedules shall be adjusted for inflation by the tax administrator beginning in taxable 16
133	133	year 2002 and thereafter in the manner prescribed for adjustment by the commissioner of Internal 17
134	134	Revenue in 26 U.S.C. § 1(f). However, for tax years beginning on or after January 1, 2006, a 18
135	135	taxpayer may elect to use the alternative flat tax rate provided in § 44-30-2.10 to calculate his or 19
136	136	her personal income tax liability. 20
137	137	(c) For tax years beginning on or after January 1, 2001, if a taxpayer has an alternative 21
138	138	minimum tax for federal tax purposes, the taxpayer shall determine if he or she has a Rhode Island 22
139	139	alternative minimum tax. The Rhode Island alternative minimum tax shall be computed by 23
140	140	multiplying the federal tentative minimum tax without allowing for the increased exemptions under 24
141	141	the Jobs and Growth Tax Relief Reconciliation Act of 2003 (as redetermined on federal form 6251 25
142	142	Alternative Minimum Tax-Individuals) by twenty-five and one-half percent (25.5%) for tax year 26
143	143	2001, and twenty-five percent (25%) for tax year 2002 and thereafter, and comparing the product 27
144	144	to the Rhode Island tax as computed otherwise under this section. The excess shall be the taxpayer’s 28
145	145	Rhode Island alternative minimum tax. 29
146	146	(1) For tax years beginning on or after January 1, 2005, and thereafter, the exemption 30
147	147	amount for alternative minimum tax, for Rhode Island purposes, shall be adjusted for inflation by 31
148	148	the tax administrator in the manner prescribed for adjustment by the commissioner of Internal 32
149	149	Revenue in 26 U.S.C. § 1(f). 33
150	150	(2) For the period January 1, 2007, through December 31, 2007, and thereafter, Rhode 34
151	151
152	152
153	153	LC000964 - Page 5 of 19
154	154	Island taxable income shall be determined by deducting from federal adjusted gross income as 1
155	155	defined in 26 U.S.C. § 62 as modified by the modifications in § 44-30-12 the Rhode Island 2
156	156	itemized-deduction amount and the Rhode Island exemption amount as determined in this section. 3
157	157	(A) Tax imposed. 4
158	158	(1) There is hereby imposed on the taxable income of married individuals filing joint 5
159	159	returns and surviving spouses a tax determined in accordance with the following table: 6
160	160	If taxable income is: The tax is: 7
161	161	Not over $53,150 3.75% of taxable income 8
162	162	Over $53,150 but not over $128,500 $1,993.13 plus 7.00% of the excess over $53,150 9
163	163	Over $128,500 but not over $195,850 $7,267.63 plus 7.75% of the excess over $128,500 10
164	164	Over $195,850 but not over $349,700 $12,487.25 plus 9.00% of the excess over $195,850 11
165	165	Over $349,700 $26,333.75 plus 9.90% of the excess over $349,700 12
166	166	(2) There is hereby imposed on the taxable income of every head of household a tax 13
167	167	determined in accordance with the following table: 14
168	168	If taxable income is: The tax is: 15
169	169	Not over $42,650 3.75% of taxable income 16
170	170	Over $42,650 but not over $110,100 $1,599.38 plus 7.00% of the excess over $42,650 17
171	171	Over $110,100 but not over $178,350 $6,320.88 plus 7.75% of the excess over $110,100 18
172	172	Over $178,350 but not over $349,700 $11,610.25 plus 9.00% of the excess over $178,350 19
173	173	Over $349,700 $27,031.75 plus 9.90% of the excess over $349,700 20
174	174	(3) There is hereby imposed on the taxable income of unmarried individuals (other than 21
175	175	surviving spouses and heads of households) a tax determined in accordance with the following 22
176	176	table: 23
177	177	If taxable income is: The tax is: 24
178	178	Not over $31,850 3.75% of taxable income 25
179	179	Over $31,850 but not over $77,100 $1,194.38 plus 7.00% of the excess over $31,850 26
180	180	Over $77,100 but not over $160,850 $4,361.88 plus 7.75% of the excess over $77,100 27
181	181	Over $160,850 but not over $349,700 $10,852.50 plus 9.00% of the excess over $160,850 28
182	182	Over $349,700 $27,849.00 plus 9.90% of the excess over $349,700 29
183	183	(4) There is hereby imposed on the taxable income of married individuals filing separate 30
184	184	returns and bankruptcy estates a tax determined in accordance with the following table: 31
185	185	If taxable income is: The tax is: 32
186	186	Not over $26,575 3.75% of taxable income 33
187	187	Over $26,575 but not over $64,250 $996.56 plus 7.00% of the excess over $26,575 34
188	188
189	189
190	190	LC000964 - Page 6 of 19
191	191	Over $64,250 but not over $97,925 $3,633.81 plus 7.75% of the excess over $64,250 1
192	192	Over $97,925 but not over $174,850 $6,243.63 plus 9.00% of the excess over $97,925 2
193	193	Over $174,850 $13,166.88 plus 9.90% of the excess over $174,850 3
194	194	(5) There is hereby imposed a taxable income of an estate or trust a tax determined in 4
195	195	accordance with the following table: 5
196	196	If taxable income is: The tax is: 6
197	197	Not over $2,150 3.75% of taxable income 7
198	198	Over $2,150 but not over $5,000 $80.63 plus 7.00% of the excess over $2,150 8
199	199	Over $5,000 but not over $7,650 $280.13 plus 7.75% of the excess over $5,000 9
200	200	Over $7,650 but not over $10,450 $485.50 plus 9.00% of the excess over $7,650 10
201	201	Over $10,450 $737.50 plus 9.90% of the excess over $10,450 11
202	202	(6) Adjustments for inflation. 12
203	203	The dollars amount contained in paragraph (A) shall be increased by an amount equal to: 13
204	204	(a) Such dollar amount contained in paragraph (A) in the year 1993, multiplied by; 14
205	205	(b) The cost-of-living adjustment determined under section (J) with a base year of 1993; 15
206	206	(c) The cost-of-living adjustment referred to in subparagraphs (a) and (b) used in making 16
207	207	adjustments to the nine percent (9%) and nine and nine tenths percent (9.9%) dollar amounts shall 17
208	208	be determined under section (J) by substituting “1994” for “1993.” 18
209	209	(B) Maximum capital gains rates. 19
210	210	(1) In general. 20
211	211	If a taxpayer has a net capital gain for tax years ending prior to January 1, 2010, the tax 21
212	212	imposed by this section for such taxable year shall not exceed the sum of: 22
213	213	(a) 2.5% of the net capital gain as reported for federal income tax purposes under section 23
214	214	26 U.S.C. § 1(h)(1)(a) and 26 U.S.C. § 1(h)(1)(b). 24
215	215	(b) 5% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. 25
216	216	§ 1(h)(1)(c). 26
217	217	(c) 6.25% of the net capital gain as reported for federal income tax purposes under 26 27
218	218	U.S.C. § 1(h)(1)(d). 28
219	219	(d) 7% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. 29
220	220	§ 1(h)(1)(e). 30
221	221	(2) For tax years beginning on or after January 1, 2010, the tax imposed on net capital gain 31
222	222	shall be determined under subdivision 44-30-2.6(c)(2)(A). 32
223	223	(C) Itemized deductions. 33
224	224	(1) In general. 34
225	225
226	226
227	227	LC000964 - Page 7 of 19
228	228	For the purposes of section (2), “itemized deductions” means the amount of federal 1
229	229	itemized deductions as modified by the modifications in § 44-30-12. 2
230	230	(2) Individuals who do not itemize their deductions. 3
231	231	In the case of an individual who does not elect to itemize his deductions for the taxable 4
232	232	year, they may elect to take a standard deduction. 5
233	233	(3) Basic standard deduction. 6
234	234	The Rhode Island standard deduction shall be allowed in accordance with the following 7
235	235	table: 8
236	236	Filing status Amount 9
237	237	Single $5,350 10
238	238	Married filing jointly or qualifying widow(er) $8,900 11
239	239	Married filing separately $4,450 12
240	240	Head of Household $7,850 13
241	241	(4) Additional standard deduction for the aged and blind. 14
242	242	An additional standard deduction shall be allowed for individuals age sixty-five (65) or 15
243	243	older or blind in the amount of $1,300 for individuals who are not married and $1,050 for 16
244	244	individuals who are married. 17
245	245	(5) Limitation on basic standard deduction in the case of certain dependents. 18
246	246	In the case of an individual to whom a deduction under section (E) is allowable to another 19
247	247	taxpayer, the basic standard deduction applicable to such individual shall not exceed the greater of: 20
248	248	(a) $850; 21
249	249	(b) The sum of $300 and such individual’s earned income; 22
250	250	(6) Certain individuals not eligible for standard deduction. 23
251	251	In the case of: 24
252	252	(a) A married individual filing a separate return where either spouse itemizes deductions; 25
253	253	(b) Nonresident alien individual; 26
254	254	(c) An estate or trust; 27
255	255	The standard deduction shall be zero. 28
256	256	(7) Adjustments for inflation. 29
257	257	Each dollar amount contained in paragraphs (3), (4) and (5) shall be increased by an amount 30
258	258	equal to: 31
259	259	(a) Such dollar amount contained in paragraphs (3), (4) and (5) in the year 1988, multiplied 32
260	260	by 33
261	261	(b) The cost-of-living adjustment determined under section (J) with a base year of 1988. 34
262	262
263	263
264	264	LC000964 - Page 8 of 19
265	265	(D) Overall limitation on itemized deductions. 1
266	266	(1) General rule. 2
267	267	In the case of an individual whose adjusted gross income as modified by § 44-30-12 3
268	268	exceeds the applicable amount, the amount of the itemized deductions otherwise allowable for the 4
269	269	taxable year shall be reduced by the lesser of: 5
270	270	(a) Three percent (3%) of the excess of adjusted gross income as modified by § 44-30-12 6
271	271	over the applicable amount; or 7
272	272	(b) Eighty percent (80%) of the amount of the itemized deductions otherwise allowable for 8
273	273	such taxable year. 9
274	274	(2) Applicable amount. 10
275	275	(a) In general. 11
276	276	For purposes of this section, the term “applicable amount” means $156,400 ($78,200 in the 12
277	277	case of a separate return by a married individual) 13
278	278	(b) Adjustments for inflation. 14
279	279	Each dollar amount contained in paragraph (a) shall be increased by an amount equal to: 15
280	280	(i) Such dollar amount contained in paragraph (a) in the year 1991, multiplied by 16
281	281	(ii) The cost-of-living adjustment determined under section (J) with a base year of 1991. 17
282	282	(3) Phase-out of Limitation. 18
283	283	(a) In general. 19
284	284	In the case of taxable year beginning after December 31, 2005, and before January 1, 2010, 20
285	285	the reduction under section (1) shall be equal to the applicable fraction of the amount which would 21
286	286	be the amount of such reduction. 22
287	287	(b) Applicable fraction. 23
288	288	For purposes of paragraph (a), the applicable fraction shall be determined in accordance 24
289	289	with the following table: 25
290	290	For taxable years beginning in calendar year The applicable fraction is 26
291	291	2006 and 2007 ⅔ 27
292	292	2008 and 2009 ⅓ 28
293	293	(E) Exemption amount. 29
294	294	(1) In general. 30
295	295	Except as otherwise provided in this subsection, the term “exemption amount” means 31
296	296	$3,400. 32
297	297	(2) Exemption amount disallowed in case of certain dependents. 33
298	298	In the case of an individual with respect to whom a deduction under this section is allowable 34
299	299
300	300
301	301	LC000964 - Page 9 of 19
302	302	to another taxpayer for the same taxable year, the exemption amount applicable to such individual 1
303	303	for such individual's taxable year shall be zero. 2
304	304	(3) Adjustments for inflation. 3
305	305	The dollar amount contained in paragraph (1) shall be increased by an amount equal to: 4
306	306	(a) Such dollar amount contained in paragraph (1) in the year 1989, multiplied by 5
307	307	(b) The cost-of-living adjustment determined under section (J) with a base year of 1989. 6
308	308	(4) Limitation. 7
309	309	(a) In general. 8
310	310	In the case of any taxpayer whose adjusted gross income as modified for the taxable year 9
311	311	exceeds the threshold amount shall be reduced by the applicable percentage. 10
312	312	(b) Applicable percentage. 11
313	313	In the case of any taxpayer whose adjusted gross income for the taxable year exceeds the 12
314	314	threshold amount, the exemption amount shall be reduced by two (2) percentage points for each 13
315	315	$2,500 (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year 14
316	316	exceeds the threshold amount. In the case of a married individual filing a separate return, the 15
317	317	preceding sentence shall be applied by substituting “$1,250” for “$2,500.” In no event shall the 16
318	318	applicable percentage exceed one hundred percent (100%). 17
319	319	(c) Threshold Amount. 18
320	320	For the purposes of this paragraph, the term ‘‘threshold amount’’ shall be determined with 19
321	321	the following table: 20
322	322	Filing status Amount 21
323	323	Single $156,400 22
324	324	Married filing jointly of qualifying widow(er) $234,600 23
325	325	Married filing separately $117,300 24
326	326	Head of Household $195,500 25
327	327	(d) Adjustments for inflation. 26
328	328	Each dollar amount contained in paragraph (b) shall be increased by an amount equal to: 27
329	329	(i) Such dollar amount contained in paragraph (b) in the year 1991, multiplied by 28
330	330	(ii) The cost-of-living adjustment determined under section (J) with a base year of 1991. 29
331	331	(5) Phase-out of limitation. 30
332	332	(a) In general. 31
333	333	In the case of taxable years beginning after December 31, 2005, and before January 1, 32
334	334	2010, the reduction under section 4 shall be equal to the applicable fraction of the amount which 33
335	335	would be the amount of such reduction. 34
336	336
337	337
338	338	LC000964 - Page 10 of 19
339	339	(b) Applicable fraction. 1
340	340	For the purposes of paragraph (a), the applicable fraction shall be determined in accordance 2
341	341	with the following table: 3
342	342	For taxable years beginning in calendar year The applicable fraction is 4
343	343	2006 and 2007 ⅔ 5
344	344	2008 and 2009 ⅓ 6
345	345	(F) Alternative minimum tax. 7
346	346	(1) General rule. There is hereby imposed (in addition to any other tax imposed by this 8
347	347	subtitle) a tax equal to the excess (if any) of: 9
348	348	(a) The tentative minimum tax for the taxable year, over 10
349	349	(b) The regular tax for the taxable year. 11
350	350	(2) The tentative minimum tax for the taxable year is the sum of: 12
351	351	(a) 6.5 percent of so much of the taxable excess as does not exceed $175,000, plus 13
352	352	(b) 7.0 percent of so much of the taxable excess above $175,000. 14
353	353	(3) The amount determined under the preceding sentence shall be reduced by the alternative 15
354	354	minimum tax foreign tax credit for the taxable year. 16
355	355	(4) Taxable excess. For the purposes of this subsection the term “taxable excess” means so 17
356	356	much of the federal alternative minimum taxable income as modified by the modifications in § 44-18
357	357	30-12 as exceeds the exemption amount. 19
358	358	(5) In the case of a married individual filing a separate return, subparagraph (2) shall be 20
359	359	applied by substituting “$87,500” for $175,000 each place it appears. 21
360	360	(6) Exemption amount. 22
361	361	For purposes of this section "exemption amount" means: 23
362	362	Filing status Amount 24
363	363	Single $39,150 25
364	364	Married filing jointly or qualifying widow(er) $53,700 26
365	365	Married filing separately $26,850 27
366	366	Head of Household $39,150 28
367	367	Estate or trust $24,650 29
368	368	(7) Treatment of unearned income of minor children 30
369	369	(a) In general. 31
370	370	In the case of a minor child, the exemption amount for purposes of section (6) shall not 32
371	371	exceed the sum of: 33
372	372	(i) Such child's earned income, plus 34
373	373
374	374
375	375	LC000964 - Page 11 of 19
376	376	(ii) $6,000. 1
377	377	(8) Adjustments for inflation. 2
378	378	The dollar amount contained in paragraphs (6) and (7) shall be increased by an amount 3
379	379	equal to: 4
380	380	(a) Such dollar amount contained in paragraphs (6) and (7) in the year 2004, multiplied by 5
381	381	(b) The cost-of-living adjustment determined under section (J) with a base year of 2004. 6
382	382	(9) Phase-out. 7
383	383	(a) In general. 8
384	384	The exemption amount of any taxpayer shall be reduced (but not below zero) by an amount 9
385	385	equal to twenty-five percent (25%) of the amount by which alternative minimum taxable income 10
386	386	of the taxpayer exceeds the threshold amount. 11
387	387	(b) Threshold amount. 12
388	388	For purposes of this paragraph, the term “threshold amount” shall be determined with the 13
389	389	following table: 14
390	390	Filing status Amount 15
391	391	Single $123,250 16
392	392	Married filing jointly or qualifying widow(er) $164,350 17
393	393	Married filing separately $82,175 18
394	394	Head of Household $123,250 19
395	395	Estate or Trust $82,150 20
396	396	(c) Adjustments for inflation 21
397	397	Each dollar amount contained in paragraph (9) shall be increased by an amount equal to: 22
398	398	(i) Such dollar amount contained in paragraph (9) in the year 2004, multiplied by 23
399	399	(ii) The cost-of-living adjustment determined under section (J) with a base year of 2004. 24
400	400	(G) Other Rhode Island taxes. 25
401	401	(1) General rule. There is hereby imposed (in addition to any other tax imposed by this 26
402	402	subtitle) a tax equal to twenty-five percent (25%) of: 27
403	403	(a) The Federal income tax on lump-sum distributions. 28
404	404	(b) The Federal income tax on parents' election to report child's interest and dividends. 29
405	405	(c) The recapture of Federal tax credits that were previously claimed on Rhode Island 30
406	406	return. 31
407	407	(H) Tax for children under 18 with investment income. 32
408	408	(1) General rule. There is hereby imposed a tax equal to twenty-five percent (25%) of: 33
409	409	(a) The Federal tax for children under the age of 18 with investment income. 34
410	410
411	411
412	412	LC000964 - Page 12 of 19
413	413	(I) Averaging of farm income. 1
414	414	(1) General rule. At the election of an individual engaged in a farming business or fishing 2
415	415	business, the tax imposed in section 2 shall be equal to twenty-five percent (25%) of: 3
416	416	(a) The Federal averaging of farm income as determined in IRC section 1301 [26 U.S.C. § 4
417	417	1301]. 5
418	418	(J) Cost-of-living adjustment. 6
419	419	(1) In general. 7
420	420	The cost-of-living adjustment for any calendar year is the percentage (if any) by which: 8
421	421	(a) The CPI for the preceding calendar year exceeds 9
422	422	(b) The CPI for the base year. 10
423	423	(2) CPI for any calendar year. 11
424	424	For purposes of paragraph (1), the CPI for any calendar year is the average of the consumer 12
425	425	price index as of the close of the twelve (12) month period ending on August 31 of such calendar 13
426	426	year. 14
427	427	(3) Consumer price index. 15
428	428	For purposes of paragraph (2), the term “consumer price index” means the last consumer 16
429	429	price index for all urban consumers published by the department of labor. For purposes of the 17
430	430	preceding sentence, the revision of the consumer price index that is most consistent with the 18
431	431	consumer price index for calendar year 1986 shall be used. 19
432	432	(4) Rounding. 20
433	433	(a) In general. 21
434	434	If any increase determined under paragraph (1) is not a multiple of $50, such increase shall 22
435	435	be rounded to the next lowest multiple of $50. 23
436	436	(b) In the case of a married individual filing a separate return, subparagraph (a) shall be 24
437	437	applied by substituting “$25” for $50 each place it appears. 25
438	438	(K) Credits against tax. For tax years beginning on or after January 1, 2001, a taxpayer 26
439	439	entitled to any of the following federal credits enacted prior to January 1, 1996, shall be entitled to 27
440	440	a credit against the Rhode Island tax imposed under this section: 28
441	441	(1) [Deleted by P.L. 2007, ch. 73, art. 7, § 5.] 29
442	442	(2) Child and dependent care credit; 30
443	443	(3) General business credits; 31
444	444	(4) Credit for elderly or the disabled; 32
445	445	(5) Credit for prior year minimum tax; 33
446	446	(6) Mortgage interest credit; 34
447	447
448	448
449	449	LC000964 - Page 13 of 19
450	450	(7) Empowerment zone employment credit; 1
451	451	(8) Qualified electric vehicle credit. 2
452	452	(L) Credit against tax for adoption. For tax years beginning on or after January 1, 2006, 3
453	453	a taxpayer entitled to the federal adoption credit shall be entitled to a credit against the Rhode Island 4
454	454	tax imposed under this section if the adopted child was under the care, custody, or supervision of 5
455	455	the Rhode Island department of children, youth and families prior to the adoption. 6
456	456	(M) The credit shall be twenty-five percent (25%) of the aforementioned federal credits 7
457	457	provided there shall be no deduction based on any federal credits enacted after January 1, 1996, 8
458	458	including the rate reduction credit provided by the federal Economic Growth and Tax 9
459	459	Reconciliation Act of 2001 (EGTRRA). In no event shall the tax imposed under this section be 10
460	460	reduced to less than zero. A taxpayer required to recapture any of the above credits for federal tax 11
461	461	purposes shall determine the Rhode Island amount to be recaptured in the same manner as 12
462	462	prescribed in this subsection. 13
463	463	(N) Rhode Island earned-income credit. 14
464	464	(1) In general. 15
465	465	For tax years beginning before January 1, 2015, a taxpayer entitled to a federal earned-16
466	466	income credit shall be allowed a Rhode Island earned-income credit equal to twenty-five percent 17
467	467	(25%) of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode 18
468	468	Island income tax. 19
469	469	For tax years beginning on or after January 1, 2015, and before January 1, 2016, a taxpayer 20
470	470	entitled to a federal earned-income credit shall be allowed a Rhode Island earned-income credit 21
471	471	equal to ten percent (10%) of the federal earned-income credit. Such credit shall not exceed the 22
472	472	amount of the Rhode Island income tax. 23
473	473	For tax years beginning on or after January 1, 2016, a taxpayer entitled to a federal earned-24
474	474	income credit shall be allowed a Rhode Island earned-income credit equal to twelve and one-half 25
475	475	percent (12.5%) of the federal earned-income credit. Such credit shall not exceed the amount of the 26
476	476	Rhode Island income tax. 27
477	477	For tax years beginning on or after January 1, 2017, a taxpayer entitled to a federal earned-28
478	478	income credit shall be allowed a Rhode Island earned-income credit equal to fifteen percent (15%) 29
479	479	of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island 30
480	480	income tax. 31
481	481	For tax years beginning on or after January 1, 2024, a taxpayer entitled to a federal earned-32
482	482	income credit shall be allowed a Rhode Island earned-income credit equal to sixteen percent (16%) 33
483	483	of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island 34
484	484
485	485
486	486	LC000964 - Page 14 of 19
487	487	income tax. 1
488	488	(2) Refundable portion. 2
489	489	In the event the Rhode Island earned-income credit allowed under paragraph (N)(1) of this 3
490	490	section exceeds the amount of Rhode Island income tax, a refundable earned-income credit shall 4
491	491	be allowed as follows. 5
492	492	(i) For tax years beginning before January 1, 2015, for purposes of paragraph (2) refundable 6
493	493	earned-income credit means fifteen percent (15%) of the amount by which the Rhode Island earned-7
494	494	income credit exceeds the Rhode Island income tax. 8
495	495	(ii) For tax years beginning on or after January 1, 2015, for purposes of paragraph (2) 9
496	496	refundable earned-income credit means one hundred percent (100%) of the amount by which the 10
497	497	Rhode Island earned-income credit exceeds the Rhode Island income tax. 11
498	498	(O) The tax administrator shall recalculate and submit necessary revisions to paragraphs 12
499	499	(A) through (J) to the general assembly no later than February 1, 2010, and every three (3) years 13
500	500	thereafter for inclusion in the statute. 14
501	501	(3) For the period January 1, 2011, through December 31, 2011, and thereafter, “Rhode 15
502	502	Island taxable income” means federal adjusted gross income as determined under the Internal 16
503	503	Revenue Code, 26 U.S.C. § 1 et seq., and as modified for Rhode Island purposes pursuant to § 44-17
504	504	30-12 less the amount of Rhode Island Basic Standard Deduction allowed pursuant to subparagraph 18
505	505	44-30-2.6(c)(3)(B), and less the amount of personal exemption allowed pursuant to subparagraph 19
506	506	44-30-2.6(c)(3)(C). 20
507	507	(A) Tax imposed. 21
508	508	(I) There is hereby imposed on the taxable income of married individuals filing joint 22
509	509	returns, qualifying widow(er), every head of household, unmarried individuals, married individuals 23
510	510	filing separate returns and bankruptcy estates, a tax determined in accordance with the following 24
511	511	table: 25
512	512	RI Taxable Income RI Income Tax 26
513	513	Over But not over Pay + % on Excess on the amount over 27
514	514	$ 0 - $ 55,000 $ 0 + 3.75% $ 0 28
515	515	55,000 - 125,000 2,063 + 4.75% 55,000 29
516	516	125,000 - 5,388 + 5.99% 125,000 30
517	517	(II) There is hereby imposed on the taxable income of an estate or trust a tax determined in 31
518	518	accordance with the following table: 32
519	519	RI Taxable Income RI Income Tax 33
520	520	Over But not over Pay + % on Excess on the amount over 34
521	521
522	522
523	523	LC000964 - Page 15 of 19
524	524	$ 0 - $ 2,230 $ 0 + 3.75% $ 0 1
525	525	2,230 - 7,022 84 + 4.75% 2,230 2
526	526	7,022 - 312 + 5.99% 7,022 3
527	527	(B) Deductions: 4
528	528	(I) Rhode Island Basic Standard Deduction. 5
529	529	Only the Rhode Island standard deduction shall be allowed in accordance with the 6
530	530	following table: 7
531	531	Filing status: Amount 8
532	532	Single $7,500 9
533	533	Married filing jointly or qualifying widow(er) $15,000 10
534	534	Married filing separately $7,500 11
535	535	Head of Household $11,250 12
536	536	(II) Nonresident alien individuals, estates and trusts are not eligible for standard 13
537	537	deductions. 14
538	538	(III) In the case of any taxpayer whose adjusted gross income, as modified for Rhode Island 15
539	539	purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five thousand 16
540	540	dollars ($175,000), the standard deduction amount shall be reduced by the applicable percentage. 17
541	541	The term “applicable percentage” means twenty (20) percentage points for each five thousand 18
542	542	dollars ($5,000) (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable 19
543	543	year exceeds one hundred seventy-five thousand dollars ($175,000). 20
544	544	(C) Exemption Amount: 21
545	545	(I) The term “exemption amount” means three thousand five hundred dollars ($3,500) 22
546	546	multiplied by the number of exemptions allowed for the taxable year for federal income tax 23
547	547	purposes. For tax years beginning on or after 2018, the term “exemption amount” means the same 24
548	548	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
549	549	Jobs Act (Pub. L. No. 115-97) on December 22, 2017. 26
550	550	(II) Exemption amount disallowed in case of certain dependents. In the case of an 27
551	551	individual with respect to whom a deduction under this section is allowable to another taxpayer for 28
552	552	the same taxable year, the exemption amount applicable to such individual for such individual’s 29
553	553	taxable year shall be zero. 30
554	554	(III) Identifying information required. 31
555	555	(1) Except as provided in § 44-30-2.6(c)(3)(C)(II) of this section, no exemption shall be 32
556	556	allowed under this section with respect to any individual unless the Taxpayer Identification Number 33
557	557	of such individual is included on the federal return claiming the exemption for the same tax filing 34
558	558
559	559
560	560	LC000964 - Page 16 of 19
561	561	period. 1
562	562	(2) Notwithstanding the provisions of § 44-30-2.6(c)(3)(C)(I) of this section, in the event 2
563	563	that the Taxpayer Identification Number for each individual is not required to be included on the 3
564	564	federal tax return for the purposes of claiming a personal exemption(s), then the Taxpayer 4
565	565	Identification Number must be provided on the Rhode Island tax return for the purpose of claiming 5
566	566	said exemption(s). 6
567	567	(D) In the case of any taxpayer whose adjusted gross income, as modified for Rhode Island 7
568	568	purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five thousand 8
569	569	dollars ($175,000), the exemption amount shall be reduced by the applicable percentage. The term 9
570	570	“applicable percentage” means twenty (20) percentage points for each five thousand dollars 10
571	571	($5,000) (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year 11
572	572	exceeds one hundred seventy-five thousand dollars ($175,000). 12
573	573	(E) Adjustment for inflation. The dollar amount contained in subparagraphs 44-30-13
574	574	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
575	575	equal to: 15
576	576	(I) Such dollar amount contained in subparagraphs 44-30-2.6(c)(3)(A), 44-30-2.6(c)(3)(B) 16
577	577	and 44-30-2.6(c)(3)(C) adjusted for inflation using a base tax year of 2000, multiplied by; 17
578	578	(II) The cost-of-living adjustment with a base year of 2000. 18
579	579	(III) For the purposes of this section, the cost-of-living adjustment for any calendar year is 19
580	580	the percentage (if any) by which the consumer price index for the preceding calendar year exceeds 20
581	581	the consumer price index for the base year. The consumer price index for any calendar year is the 21
582	582	average of the consumer price index as of the close of the twelve-month (12) period ending on 22
583	583	August 31, of such calendar year. 23
584	584	(IV) For the purpose of this section the term “consumer price index” means the last 24
585	585	consumer price index for all urban consumers published by the department of labor. For the purpose 25
586	586	of this section the revision of the consumer price index that is most consistent with the consumer 26
587	587	price index for calendar year 1986 shall be used. 27
588	588	(V) If any increase determined under this section is not a multiple of fifty dollars ($50.00), 28
589	589	such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the case of a 29
590	590	married individual filing separate return, if any increase determined under this section is not a 30
591	591	multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower multiple 31
592	592	of twenty-five dollars ($25.00). 32
593	593	(F) Credits against tax. 33
594	594	(I) Notwithstanding any other provisions of Rhode Island Law, for tax years beginning on 34
595	595
596	596
597	597	LC000964 - Page 17 of 19
598	598	or after January 1, 2011, the only credits allowed against a tax imposed under this chapter shall be 1
599	599	as follows: 2
600	600	(a) Rhode Island earned-income credit: Credit shall be allowed for earned-income credit 3
601	601	pursuant to subparagraph 44-30-2.6(c)(2)(N). 4
602	602	(b) Property Tax Relief Credit: Credit shall be allowed for property tax relief as provided 5
603	603	in § 44-33-1 et seq. 6
604	604	(c) Lead Paint Credit: Credit shall be allowed for residential lead abatement income tax 7
605	605	credit as provided in § 44-30.3-1 et seq. 8
606	606	(d) Credit for income taxes of other states. Credit shall be allowed for income tax paid to 9
607	607	other states pursuant to § 44-30-74. 10
608	608	(e) Historic Structures Tax Credit: Credit shall be allowed for historic structures tax credit 11
609	609	as provided in § 44-33.2-1 et seq. 12
610	610	(f) Motion Picture Productions Tax Credit: Credit shall be allowed for motion picture 13
611	611	production tax credit as provided in § 44-31.2-1 et seq. 14
612	612	(g) Child and Dependent Care: Credit shall be allowed for twenty-five percent (25%) of 15
613	613	the federal child and dependent care credit allowable for the taxable year for federal purposes; 16
614	614	provided, however, such credit shall not exceed the Rhode Island tax liability. 17
615	615	(h) Tax credits for contributions to Scholarship Organizations: Credit shall be allowed for 18
616	616	contributions to scholarship organizations as provided in chapter 62 of title 44. 19
617	617	(i) Credit for tax withheld. Wages upon which tax is required to be withheld shall be taxable 20
618	618	as if no withholding were required, but any amount of Rhode Island personal income tax actually 21
619	619	deducted and withheld in any calendar year shall be deemed to have been paid to the tax 22
620	620	administrator on behalf of the person from whom withheld, and the person shall be credited with 23
621	621	having paid that amount of tax for the taxable year beginning in that calendar year. For a taxable 24
622	622	year of less than twelve (12) months, the credit shall be made under regulations of the tax 25
623	623	administrator. 26
624	624	(j) Stay Invested in RI Wavemaker Fellowship: Credit shall be allowed for stay invested in 27
625	625	RI wavemaker fellowship program as provided in § 42-64.26-1 et seq. 28
626	626	(k) Rebuild Rhode Island: Credit shall be allowed for rebuild RI tax credit as provided in 29
627	627	§ 42-64.20-1 et seq. 30
628	628	(l) Rhode Island Qualified Jobs Incentive Program: Credit shall be allowed for Rhode 31
629	629	Island new qualified jobs incentive program credit as provided in § 44-48.3-1 et seq. 32
630	630	(m) Historic homeownership assistance act: Effective for tax year 2017 and thereafter, 33
631	631	unused carryforward for such credit previously issued shall be allowed for the historic 34
632	632
633	633
634	634	LC000964 - Page 18 of 19
635	635	homeownership assistance act as provided in § 44-33.1-4. This allowance is for credits already 1
636	636	issued pursuant to § 44-33.1-4 and shall not be construed to authorize the issuance of new credits 2
637	637	under the historic homeownership assistance act. 3
638	638	(n) Rhode Island family caregiver tax credit shall be allowed for family caregivers as 4
639	639	provided in chapter 8.11.5 of title 40. 5
640	640	(2) Except as provided in section 1 above, no other state and federal tax credit shall be 6
641	641	available to the taxpayers in computing tax liability under this chapter. 7
642	642	SECTION 4. This act shall take effect upon passage. 8
643	643	========
644	644	LC000964
645	645	========
646	646
647	647
648	648	LC000964 - Page 19 of 19
649	649	EXPLANATION
650	650	BY THE LEGISLATIVE COUNCIL
651	651	OF
652	652	A N A C T
653	653	RELATING TO HUMAN SERVICES -- THE RHODE ISLAND FAMILY CAREGIVER TAX
654	654	CREDIT ACT
655	655	***
656	656	This act would establish a tax credit against income tax based upon eligible expenditures 1
657	657	incurred by a family caregiver for the care and support of an eligible family member. The maximum 2
658	658	amount of the credit would be one thousand dollars ($1,000) and would apply to all tax years 3
659	659	beginning after December 31, 2025. 4
660	660	This act would take effect upon passage. 5
661	661	========
662	662	LC000964
663	663	========