Rhode Island 2026 Regular Session

Rhode Island Senate Bill S2823

Introduced
3/4/26  

Caption

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.

Impact

The passage of S2823 is poised to directly influence state laws concerning personal income tax by adding a targeted credit designed to alleviate fiscal pressure on families. By offering a tax credit adjusted for inflation, it intends to maintain the value of the benefit over time, ensuring that it remains relevant as the cost of living changes. This measure reflects a shift in the state's approach towards more family-centric tax policies, potentially affecting budget allocations in welfare and tax revenue planning.

Summary

Senate Bill S2823 introduces a child tax credit of $650 for eligible taxpayers, which is set to take effect on January 1, 2027. The bill defines an eligible taxpayer as a natural person domiciled in Rhode Island who files a personal income tax return for the applicable tax year. The legislation aims to provide financial relief to families with children, aligning the tax policy with broader economic principles of supporting child wellness through fiscal incentives.

Contention

The bill may spark discussions regarding its long-term fiscal implications, particularly concerning tax revenue and equality among various income brackets. While proponents advocate for the positive impact on child welfare and support for lower and middle-income families, critics may express concerns regarding the sustainability of such a tax credit in the face of economic downturns or budgetary constraints. Additionally, the income threshold for the credit, which phases out beyond an adjusted gross income of $261,000, may lead to debates on equitable taxation practices.

Companion Bills

No companion bills found.

Previously Filed As

RI S0027

Increases the income range up to fifty thousand dollars ($50,000) and tax credit up to eight hundred fifty dollars ($850), for elderly and disabled persons who own or rent their homes.

RI S0447

Establishes a child tax credit of one thousand dollars ($1,000) per dependent.

RI H6072

Establishes a child tax credit of one thousand dollars ($1,000) per dependent.

RI S0033

Allows a modification to federal adjusted gross income of twenty thousand dollars ($20,000) of social security income for tax years beginning on or after January 1, 2025.

RI H6008

Allows an income tax credit for employer contributions to an eligible employee's ABLE account, for a maximum credit of two thousand dollars ($2,000) per employee, per year.

RI H5218

Increases insurance coverage for hearing aids from one thousand five hundred dollars ($1,500) to one thousand seven hundred fifty dollars ($1,750), per ear, for all people regardless of age effective January 1, 2026.

RI S0120

Increases insurance coverage for hearing aids from one thousand five hundred dollars ($1,500) to one thousand seven hundred fifty dollars ($1,750), per ear, for all people regardless of age effective January 1, 2026.

RI S0244

Increases the Rhode Island earned-income credit to twenty percent (20%) on January 1, 2026. Such credit would not exceed the amount of state income tax.

RI S0040

Increases the state earned-income credit as of January 1, 2026 to seventeen percent (17%) of the federal earned-income credit, not to exceed the amount of state income tax.

RI S0183

Gradually phases in modifications to federal adjusted gross income over a four (4) year period for social security income, from twenty-five percent (25%) up to one hundred percent (100%), beginning on or after January 1, 2026.

Similar Bills

No similar bills found.