Establishes a child tax credit in the amount of six hundred fifty dollars ($650) for eligible taxpayers adjusted for inflation annually commencing January 1, 2027.

Rhode Island Child Tax Credit Bill

This bill would create a new Rhode Island state tax credit of $650 per child for eligible families filing their state income taxes. A tax credit directly reduces the amount of taxes a person owes, meaning qualifying families would pay $650 less in state taxes for each eligible child. Starting on January 1, 2027, this credit would also be adjusted each year to keep up with inflation, so its value would not shrink over time as the cost of living rises.

The bill would affect Rhode Island parents and guardians who qualify as "eligible taxpayers" under the program's criteria (the specific income limits or other eligibility requirements are not detailed in the bill summary). Families with children who meet the qualifications would see a direct reduction in their state income tax bill, potentially putting hundreds of dollars back in their pockets each tax year.

Currently, this bill has been introduced and sent to the House Finance Committee, where lawmakers will review it before deciding whether to move it forward. It has not yet been passed into law. If it does become law, the credit would not take effect until 2027, giving the state time to prepare for the change.