Bill > S0244

This bill increases the Rhode Island earned-income credit from 16% to 20% for tax years beginning on or after January 1, 2026. The earned-income credit is a tax benefit for low to moderate-income workers that reduces their tax liability based on a percentage of the federal earned-income credit. The bill specifies that this credit cannot exceed the amount of state income tax owed by the taxpayer. This means that if a taxpayer's earned-income credit is larger than their Rhode Island state income tax, they will only receive a credit up to the full amount of taxes they owe, but not more. The change is part of an ongoing series of incremental increases to the state's earned-income credit, which is designed to provide financial support to working individuals and families with lower incomes. The bill will take effect immediately upon its passage.

Budget and Finance

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