Establishes a child tax credit of one thousand dollars ($1,000) per dependent.
Impact
The proposed child tax credit would modify the existing personal income tax framework in Rhode Island. To qualify for the credit, households would need to have an annual income of less than one hundred thousand dollars for single filers and one hundred fifty thousand dollars for joint filers. This income threshold is designed to target assistance toward lower and middle-income families, potentially improving outcomes for families experiencing economic hardship. If the tax credit exceeds an individual's tax liability, the state taxation division will handle the excess as an overpayment, ensuring that the number of families benefiting from this credit remains broad.
Summary
Bill S0447 seeks to establish a child tax credit in Rhode Island, providing a tax benefit of one thousand dollars ($1,000) for each dependent up to the age of eighteen. The legislation aims to alleviate financial pressures on families, especially in the wake of the challenges exacerbated by the COVID-19 pandemic, which has increased issues such as food insecurity and homelessness. The sponsors of the bill, a coalition of senators led by Senators Vargas and Lawson, argue that this credit would promote child welfare and support economic stability for families statewide.
Contention
Although the bill has the potential to significantly enhance financial support for numerous families, it may also face skepticism from certain quarters regarding its funding and economic impact on the state's budget. Critics may raise concerns about the sustainability of such tax credits in light of potential state revenue implications. However, proponents counter that investment in child welfare through tax credits can yield long-term savings by reducing poverty and its associated societal costs. Discussions in legislative committees suggest that advocates for the bill are confident in its positive reception, given the growing recognition of the importance of supporting child development and family stability in Rhode Island.
Allows a modification to federal adjusted gross income of fifty thousand dollars ($50,000) of taxable pension and/or annuity income for tax years beginning on or after January 1, 2025.
Awards all members of the pension system a three and one-half percent (3.5%) annual benefit adjustment applied to the first thirty thousand dollars ($30,000) of a member's retirement allowance.
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, 2024.
Authorizes a retroactive tax credit for tax yr 2022/thereafter/allowing investment tax credits to be passed through to the personal income tax returns of eligible Sub-S corporation shareholders/limited liability company members who meet certain conditions
To Amend And Modernize The Law Concerning The Apportionment Of Income Derived From Multistate Operations; And To Change The Method For Sourcing Of Receipts For Services And Intangibles.
Zero-emission facilities; requiring facilities that generate electricity by zero-emissions and receive a tax credit to provide annual report to lessee landowners; providing contents of report. Effective date.