Raises the earned-income tax credit to thirty percent (30%) for the tax years 2027 and beyond.

Rhode Island Earned Income Tax Credit Increase

This bill would increase Rhode Island's Earned Income Tax Credit (EITC) from its current rate to 30% starting with the 2027 tax year. The Earned Income Tax Credit is a tax benefit designed to help working people with low to moderate incomes — it reduces the amount of taxes they owe, and in some cases, can result in a refund even if they owe little or no taxes.

The people most directly affected by this bill are working Rhode Islanders with lower to moderate incomes, particularly those with children, though some workers without children may also qualify. If passed, eligible taxpayers would see a larger reduction in their state tax bill beginning when they file their 2027 taxes. The higher the percentage of the credit, the more money stays in the pockets of qualifying workers.

Currently, this bill has been introduced in the Rhode Island House and sent to the House Finance Committee for review. It has not yet been voted on or signed into law, so no changes are in effect at this time. If it moves forward, the state would collect less tax revenue from qualifying low- and moderate-income workers starting in 2027.