The bill amends Section 44-30-2.6 of the General Laws in Chapter 44-30, which governs Rhode Island's personal income tax. It introduces new legal language that establishes a Rhode Island earned-income credit for taxpayers entitled to a federal earned-income credit. For tax years beginning on or after January 1, 2026, the Rhode Island earned-income credit will be set at seventeen percent (17%) of the federal earned-income credit, and for tax years beginning on or after January 1, 2027, it will increase to eighteen percent (18%). The credit shall not exceed the amount of the Rhode Island income tax. The act is designed to take effect upon passage.

Statutes affected:
40: 44-30-2.6