This bill seeks to support Rhode Island children and families by introducing a new child tax credit in response to the challenges exacerbated by the pandemic, such as educational disruptions, behavioral health issues, homelessness, and food insecurity. The proposed child tax credit allows taxpayers maintaining a household with at least one dependent under eighteen to claim a credit of $1,000 per qualifying dependent, provided their income does not exceed $100,000 for single filers or $150,000 for dual filers. The bill emphasizes the positive impact of child tax credits on reducing poverty and stress within families, drawing comparisons to similar initiatives in neighboring states like Massachusetts and Connecticut.

To implement this child tax credit, the bill amends Section 44-30-2 of the General Laws related to personal income tax, introducing new tax rate schedules for various filing statuses and ensuring tax equity in light of federal changes. Key insertions include the establishment of the child tax credit and specific provisions for estates and trusts, while maintaining the historical context of Rhode Island's personal income tax rates, which have evolved over the years. The bill will take effect upon passage, integrating the child tax credit into the state's tax code and allowing for refunds if the credit exceeds the taxpayer's liability.