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, this credit will be equal to twenty percent (20%) of the federal earned-income credit, with the stipulation that it cannot exceed the amount of Rhode Island income tax owed. The existing structure for the refundable portion of the earned-income credit is maintained, allowing taxpayers to receive refunds if their credit exceeds their state income tax. The act is intended to take effect upon passage.

Statutes affected:
244: 44-30-2.6