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 tax credit in Rhode Island that gives eligible families $650 for each qualifying child when they file their state income taxes. Starting on January 1, 2027, the credit amount would automatically adjust each year to keep up with inflation, meaning it would gradually increase over time so its value doesn't erode as the cost of living rises.

The bill primarily affects Rhode Island parents and guardians who have dependent children and file state income taxes. A tax credit directly reduces the amount of taxes a person owes, which is different from a tax deduction — meaning eligible families would see a dollar-for-dollar reduction in their tax bill. For example, a family with two qualifying children could potentially reduce their state tax bill by $1,300.

The bill is currently in the early stages of the legislative process. It has been introduced in the Senate and referred to the Senate Finance Committee, which will review its potential costs and impacts before deciding whether to move it forward. A hearing has been scheduled for April 7, 2026. The full details — such as income limits, the definition of a qualifying child, and whether the credit is refundable (meaning families could receive money back if the credit exceeds what they owe) — would be found in the complete bill text.