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, increasing the credit percentage to twenty percent (20%) for tax years beginning on or after January 1, 2026. This change builds on previous adjustments to the credit, which have varied from ten percent (10%) to sixteen percent (16%) in the years leading up to 2024. The act maintains the existing structure for the refundable portion of the earned-income credit, allowing taxpayers to receive a refund if their Rhode Island earned-income credit exceeds their state income tax. The act is set to take effect upon passage.

Statutes affected:
5760: 44-30-2.6