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 set at twenty percent (20%) of the federal earned-income credit and will not exceed the amount of the Rhode Island income tax. The existing structure for the refundable portion of the earned-income credit is maintained, allowing taxpayers to receive refunds if their Rhode Island earned-income credit exceeds their state income tax. The act is intended to take effect immediately upon passage, aiming to provide enhanced tax relief for low- to moderate-income families.

Statutes affected:
5760: 44-30-2.6