The bill amends Chapter 44-30 of the General Laws to establish a new Child Tax Credit of $650 for eligible taxpayers with children under the age of 18, effective for tax years beginning on or after January 1, 2027. To qualify for this credit, taxpayers must be eligible taxpayers as defined in the bill and have a zero exemption amount for the claimed child. The credit will be reduced for eligible taxpayers whose adjusted gross income exceeds $261,000, following a specified reduction formula based on income thresholds.

Additionally, the bill includes provisions for annual inflation adjustments to the credit amount, ensuring it remains relevant over time. The adjustments will be based on the consumer price index, with specific calculations outlined in the bill.

The legislation also modifies Section 44-30-2.6, clarifying that the exemption amount for a claimed child dependent will be zero for tax years beginning on or after January 1, 2027, effectively replacing the exemption with the new credit. The bill takes effect on January 1, 2027.

Statutes affected:
2823: 44-30-2.6