Bill > H5760

This bill raises the Rhode Island Earned Income Tax Credit (EITC) from sixteen percent (16%) to twenty percent (20%) of the federal earned-income credit for tax years beginning on or after January 1, 2026. The Earned Income Tax Credit is a refundable tax credit designed to provide financial support to low to moderate-income working individuals and families. Under this bill, taxpayers who qualify for the federal earned-income credit will be able to claim a state-level credit equal to twenty percent of their federal credit, which can help reduce their state income tax liability or potentially result in a tax refund if the credit exceeds their tax owed. The bill would take effect immediately upon passage, meaning it can be implemented for the 2026 tax year and beyond. This change represents a continued incremental increase in Rhode Island's support for working families through the state's earned-income tax credit program.

Budget and Finance

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