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