Establishes a child tax credit of one thousand dollars ($1,000) per dependent.
If enacted, the bill will amend Rhode Island's existing personal income tax laws, specifically allowing qualified taxpayers to claim this additional child tax credit. Eligibility for the credit is limited to households earning a maximum of one hundred thousand dollars for single filers and one hundred fifty thousand for joint filers. This measure aims to provide direct financial assistance to families, promoting positive outcomes for children and contributing to overall state welfare.
House Bill 7924 proposes the establishment of a child tax credit in Rhode Island, providing a credit of one thousand dollars ($1,000) for each dependent child under the care of qualifying taxpayers. The bill aims to support families by alleviating some of the financial burdens they face, particularly in light of challenges exacerbated by the pandemic, such as inflation and food insecurity. This initiative is based on research suggesting that child tax credits can reduce child poverty, enhance child development, and improve family financial stability.
The key points of contention surrounding HB 7924 may include discussions about the fiscal implications of the proposed tax credit on state revenue, as well as the potential benefits and drawbacks it presents to various demographics within Rhode Island. Supporters may argue that the credit is essential for aiding families struggling with post-pandemic financial challenges, while opponents might raise concerns over the cost to the state and the fairness of extending tax credits to certain income brackets. As similar measures have been adopted in several neighboring states, debates might also involve comparisons to these existing programs.