Rhode Island Senate Bill S0110

Rhode Island 2025 Regular Session

• Introduced: 1/31/25
• Refer: 1/31/25

Caption

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

Impact

The proposed tax credit will be set at a maximum of $1,000 per tax year for caregivers claiming qualified expenditures. Eligible expenses could encompass the costs related to home modifications, hiring aides, or acquiring necessary medical supplies. This legislation could significantly impact state tax laws by integrating direct financial assistance for caregivers into the state tax system, consequently recognizing and formalizing the critical role of family caregivers in the health care continuum.

Summary

S0110, known as the Rhode Island Family Caregiver Tax Credit Act, is intended to provide financial support to family caregivers who are tasked with assisting their elderly or disabled relatives. The bill recognizes that a significant majority of care at home is provided by unpaid family caregivers, who often face substantial physical, psychological, and financial burdens while performing these duties. By allowing a tax credit for eligible expenses incurred in providing care, the bill aims to alleviate some of these burdens, making caregiving more feasible and sustainable for families throughout the state.

Contention

While there is broad support for the intent of S0110, discussions around the bill have highlighted potential challenges in its implementation. Some legislators express concern about the adequacy of the proposed maximum credit of $1,000, questioning whether this amount is sufficient considering the average costs that caregivers often face. Moreover, ensuring that the criteria for eligible expenditures are appropriately defined to prevent misuse of the credit may represent a substantial oversight issue that could complicate the administrative process of the bill.

Additional_notes

The bill specifies that expenditures must relate directly to caregiving responsibilities and further excludes items reimbursable by health insurance programs. By setting clear boundaries and definitions within the tax legislation, the bill attempts to streamline assistance specifically to caregivers without overlapping other support mechanisms already in place.