Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0447 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3
4	4
5	5	2025 -- S 0447
6	6	========
7	7	LC000546
8	8	========
9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO TAXATION -- PERSONAL INCOME TAX -- CHILD TAX CREDIT
16	16	Introduced By: Senators Vargas, Lawson, DiPalma, Murray, Acosta, Gu, Appollonio,
17	17	and Britto
18	18	Date Introduced: February 26, 2025
19	19	Referred To: Senate Finance
20	20
21	21
22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Findings of fact. 1
24	24	(1) The health and wellbeing of Rhode Island children and their families are critical to the 2
25	25	future of our state; 3
26	26	(2) Children, youth, and their caregivers are experiencing challenges exacerbated by the 4
27	27	pandemic leading to increasing educational, behavioral health crises, as well as inflationary 5
28	28	pressures exacerbating homelessness, and food insecurity; 6
29	29	(3) Research has shown that child tax credits contribute to promotion of work, reduction 7
30	30	of poverty, and enhanced child development; 8
31	31	(4) Research has shown that child tax credits are associated with reductions in family 9
32	32	stressors and state-level maltreatment reports; 10
33	33	(5) Research has shown that child tax credit income is used to supplement basic household 11
34	34	needs and children's essentials; 12
35	35	(6) Fourteen states including Massachusetts have child tax credits and other states have 13
36	36	pending proposals in their state legislatures, including Connecticut. According to research by the 14
37	37	Institute on Taxation and Economic Policy, a combination of the existing federal child tax credit 15
38	38	and a state credit would slash child poverty rates. 16
39	39	SECTION 2. Section 44-30-2 of the General Laws in Chapter 44-30 entitled "Personal 17
40	40	Income Tax" is hereby amended to read as follows: 18
41	41	44-30-2. Rate of tax. 19
42	42
43	43
44	44	LC000546 - Page 2 of 8
45	45	(a) General. 1
46	46	(1)(i) A Rhode Island personal income tax is imposed upon the Rhode Island income of 2
47	47	residents and nonresidents, including estates and trusts, for the period January 1, 1971 through June 3
48	48	30, 1971 equal to twenty percent (20%) of one-half (½) of the taxpayer’s federal income tax liability 4
49	49	for the taxable year commencing January 1, 1971; for the period July 1, 1971 through December 5
50	50	31, 1971 equal to fifteen percent (15%) of one-half (½) of the taxpayer’s federal income tax liability 6
51	51	for the taxable year commencing January 1, 1971; and for each taxable year on and after January 7
52	52	1, 1972, and ending on or before December 31, 1974 equal to fifteen percent (15%) of the 8
53	53	taxpayer’s federal income tax liability; for each taxable year on and after January 1, 1975 and 9
54	54	ending on or before December 31, 1977 equal to seventeen percent (17%) of the taxpayer’s federal 10
55	55	income tax liability; for each taxable year ending after December 31, 1977 equal to nineteen percent 11
56	56	(19%) of the taxpayer’s federal income tax liability; for each taxable year ending after December 12
57	57	31, 1980 equal to nineteen and twenty-four one-hundredths percent (19.24%) of the taxpayer’s 13
58	58	federal income tax liability; for each taxable year ending after December 31, 1981 equal to twenty-14
59	59	one and nine-tenths percent (21.9%) of the taxpayer’s federal income tax liability; for the period 15
60	60	January 1, 1983 through June 30, 1983 equal to twenty-seven and five-tenths percent (27.5%) of 16
61	61	the taxpayer’s federal income tax liability; for the period July 1, 1983 and through June 30, 1984 17
62	62	equal to twenty-six percent (26%) of the taxpayer’s federal income tax liability; for the period July 18
63	63	1, 1984 and through December 31, 1984 equal to twenty-four and nine-tenths percent (24.9%) of 19
64	64	the taxpayer’s federal income tax liability; in accordance with subsection (2) of this section for the 20
65	65	period January 1, 1985 through June 30, 1985 equal to twenty-three and sixty-five one-hundredths 21
66	66	percent (23.65%) of the taxpayer’s federal income tax liability; for the period July 1, 1985 through 22
67	67	December 31, 1985, equal to twenty-two and sixty-five one-hundredths percent (22.65%) of the 23
68	68	taxpayer’s federal income tax liability; in accordance with subsection (3) of this section for January 24
69	69	1, 1986 and thereafter shall be equal to twenty-two and twenty-one one-hundredths percent 25
70	70	(22.21%) of the taxpayer’s federal income tax liability; in accordance with the Tax Reform Act of 26
71	71	1986, codified primarily at 26 U.S.C. § 1 et seq., for the period January 1, 1987 through June 30, 27
72	72	1987 shall be equal to twenty-three and ninety-six one-hundredths percent (23.96%) of the 28
73	73	taxpayer’s federal income tax liability; for the period July 1, 1987 through December 31, 1990 shall 29
74	74	be equal to twenty-two and ninety-six one-hundredths percent (22.96%) of the taxpayer’s federal 30
75	75	income tax liability; for the period January 1, 1991 through June 30, 1992 and for the period January 31
76	76	1, 1994 and thereafter shall be equal to twenty-seven and five tenths percent (27.5%) of the 32
77	77	taxpayer’s federal income tax liability; for the period July 1, 1992 through December 31, 1992 if 33
78	78	the taxpayer’s federal income tax liability is fifteen thousand dollars ($15,000) or less shall be equal 34
79	79
80	80
81	81	LC000546 - Page 3 of 8
82	82	to twenty-seven and five tenths percent (27.5%) of the taxpayer’s federal income tax liability but 1
83	83	if the taxpayer’s federal income tax liability is greater than fifteen thousand dollars ($15,000) shall 2
84	84	be the sum of twenty-seven and five-tenths percent (27.5%) of the taxpayer’s federal income tax 3
85	85	liability up to and including fifteen thousand dollars ($15,000) and thirty-two percent (32%) of the 4
86	86	taxpayer’s federal income tax liability in excess of fifteen thousand dollars ($15,000). 5
87	87	(ii) The effective rate for the year 1983 shall be equal to twenty-six and seventy-five 6
88	88	hundredths percent (26.75%) of the taxpayer’s federal income tax liability. The effective rate for 7
89	89	the year 1984 shall be equal to twenty-five and five-tenths percent (25.5%) of the taxpayer’s federal 8
90	90	income tax liability. 9
91	91	(iii) The effective rate for the year 1985 shall be equal to twenty- three and fifteen-10
92	92	hundredths percent (23.15%) of the taxpayer’s federal income tax liability. The effective rate for 11
93	93	the year 1987 shall be twenty-three and forty-six one-hundredths percent (23.46%) of the 12
94	94	taxpayer’s federal income tax liability. 13
95	95	(iv) For the year 1992, if the taxpayer’s federal income tax liability for the year is greater 14
96	96	than fifteen thousand dollars ($15,000), the effective rate on such the federal income tax liability 15
97	97	in excess of fifteen thousand dollars ($15,000) shall be twenty-nine and seventy-five one-16
98	98	hundredths percent (29.75%). 17
99	99	(v) The personal income tax rate for the year 1993 shall be in accordance with the following 18
100	100	schedules: 19
101	101	SCHEDULE X-RI: Single Individuals 20
102	102	FEDERAL INCOME TAX LIABILITY RI INCOME TAX 21
103	103	Over But not Over Pay + % On Excess Of The Amount Over- 22
104	104	$0 - $15,000 $0 27.5% $0 23
105	105	15,000 - 31,172 4,125 32% 15,000 24
106	106	31,172 - 79,772 9,300 27.55% 31,172 25
107	107	79,772 22,689 25.05% 79,772 26
108	108	The above rate table may not be used by a taxpayer who files a federal Schedule D and has 27
109	109	taxable income in excess of $115,000.00. Those individuals must file a Rhode Island Schedule D. 28
110	110	SCHEDULE Y-1-RI: Married Filing Jointly or Qualifying Widow(er) 29
111	111	FEDERAL INCOME TAX LIABILITY RI INCOME TAX 30
112	112	Over But not Over Pay + % On Excess Of The Amount Over- 31
113	113	$0 - $15,000 $0 27.5% $0 32
114	114	15,000 - 35,929 4,125 32% 15,000 33
115	115	35,929 -75,528 10,822 27.55% 35,928 34
116	116
117	117
118	118	LC000546 - Page 4 of 8
119	119	75,528 21,732 25.05% 75,528 1
120	120	The above rate table may not be used by a taxpayer who files a federal Schedule D and has 2
121	121	taxable income in excess of $140,000.00. Those individuals must file a Rhode Island Schedule D. 3
122	122	SCHEDULE Y-2-RI: Married Filing Separately 4
123	123	FEDERAL INCOME TAX LIABILITY RI INCOME TAX 5
124	124	Over But not Over Pay + % On Excess Of The Amount Over- 6
125	125	$0 - $15,000 $0 27.5% $0 7
126	126	15,000 - 17,964 4,125 32% 15,000 8
127	127	17,964 -37,764 5,073 27.55% 17,964 9
128	128	37,764 10,528 25.05% 37,764 10
129	129	The above rate table may not be used by a taxpayer who files a federal Schedule D and has 11
130	130	taxable income in excess of $70,000.00. Those individuals must file a Rhode Island Schedule D. 12
131	131	SCHEDULE Z-RI: Head of Household 13
132	132	FEDERAL INCOME TAX LIABILITY RI INCOME TAX 14
133	133	Over But not Over Pay + % On Excess Of The Amount Over- 15
134	134	$0 - $15,000 $0 27.5% $0 16
135	135	15,000 - 33,385 4,125 32% 15,000 17
136	136	33,385 -77,485 10,008 27.55% 33,385 18
137	137	77,485 22,158 25.05% 77,485 19
138	138	The above rate table may not be used by a taxpayer who files a federal Schedule D and has 20
139	139	taxable income in excess of $127,500.00. Those individuals must file a Rhode Island Schedule D. 21
140	140	RI INCOME TAX RATE SCHEDULES FOR USE BY ESTATES AND TRUSTS 22
141	141	FEDERAL INCOME TAX LIABILITY RI INCOME TAX 23
142	142	Over But not Over Pay + % On Excess Of The Amount Over- 24
143	143	$0 - $1,405 $0 27.5% $0 25
144	144	1,405 - 2,125 386 23.68% 1,405 26
145	145	2,125 -15,000 557 21.53% 2,125 27
146	146	15,000 3,329 25.05% 15,000 28
147	147	The above rate table may not be used by a taxpayer who files a federal Schedule D and has 29
148	148	taxable income in excess of $5,500.00. Those individuals must file a Rhode Island Schedule D. 30
149	149	(vi) The purpose of the 1993 rate schedules and/or the Rhode Island Schedule D shall be 31
150	150	such that a taxpayer’s 1993 Rhode Island personal income tax liability shall remain the same as it 32
151	151	would have been prior to the enactment of the Federal Omnibus Budget Reconciliation Act of 1993, 33
152	152	(OBRA), P.L. 103-66, 107 Stat. 312. 34
153	153
154	154
155	155	LC000546 - Page 5 of 8
156	156	(vii) For the year 1994 through December 31, 1997, the rate shall be twenty-seven and five-1
157	157	tenths percent (27.5%) of the taxpayers entire federal income tax liability. 2
158	158	(viii) For the period January 1, 1998, through December 31, 1998, the rate shall be equal 3
159	159	to twenty-seven percent (27%) of the taxpayer’s federal income tax liability. 4
160	160	(ix) For the period January 1, 1999, through December 31, 1999, the rate shall be equal to 5
161	161	twenty-six and five-tenths (26.5%) of the taxpayer’s federal income tax liability. 6
162	162	(x) For the period January 1, 2000, through December 31, 2000, the rate shall be equal to 7
163	163	twenty-six percent (26%) of the taxpayer’s federal income tax liability. 8
164	164	(xi) For the period January 1, 2001, through December 31, 2001, the rate shall be equal to 9
165	165	twenty-five and five-tenths percent (25.5%) of the taxpayer’s federal income tax liability. 10
166	166	(xii) For the period January 1, 2002, and thereafter the rate shall be twenty-five percent 11
167	167	(25%) of the taxpayer’s federal income tax liability. 12
168	168	(2) In the event that the indexing of the federal personal income tax scheduled to take effect 13
169	169	on January 1, 1985, as enacted by the Economic Recovery Tax Act of 1981, 26 U.S.C. § 1 et seq., 14
170	170	does take effect or is replaced by similar legislation, as the result of an action of the United States 15
171	171	Congress, then the Rhode Island personal income tax rate as set forth in subdivision (a)(1) of this 16
172	172	section for the period January 1, 1985, and through June 30, 1985, shall be changed and be equal 17
173	173	to twenty-three and sixty-five one-hundredths percent (23.65%) of the taxpayer’s federal income 18
174	174	tax liability. 19
175	175	(3) In the event that the indexing of the federal personal income tax scheduled to take effect 20
176	176	on January 1, 1986, as enacted by the Economic Recovery Tax Act of 1981, 26 U.S.C. § 1 et seq., 21
177	177	does take effect or is replaced by similar legislation as the result of an action of the United States 22
178	178	Congress, then the Rhode Island personal income tax rate as set forth in subdivision (a)(1) of this 23
179	179	section for the period January 1, 1986, and thereafter shall be changed and be equal to twenty-two 24
180	180	and twenty-one one-hundredths percent (22.21%) of the taxpayer’s federal income tax liability. 25
181	181	(b) Federal income tax liability. Federal income tax liability shall be the amount of federal 26
182	182	income tax without deduction for any new federal credit(s) enacted after January 1, 1996, 27
183	183	(excluding self-employment tax, social security tax or any supplemental Medicare premium) or 28
184	184	supplemental premium surcharge imposed by the Medicare Catastrophic Coverage Act of 1988 29
185	185	(P.L. 100-360), codified primarily at 42 U.S.C. § 1395 et seq., which the taxpayer would have been 30
186	186	liable if the taxpayer had paid federal income tax based on federal taxable income as adjusted by 31
187	187	the modifications provided in parts II and III of this chapter. The federal taxable income shall not 32
188	188	include modifications which would decrease federal taxable income resulting from the applications 33
189	189	of § 15 of chapter 489 of the public laws of 1923, as amended by § 8 of chapter 151 of the public 34
190	190
191	191
192	192	LC000546 - Page 6 of 8
193	193	laws of 1963; §§ 28-17-3, 36-10-32, 45-21-45, or any other sections of Rhode Island law which 1
194	194	would provide or would be construed to provide that any pension, annuity, retirement allowance, 2
195	195	benefit, or right shall be exempt from any state tax. 3
196	196	(c) Cross references. For credit in respect of: 4
197	197	(1) Taxes withheld on wages, see § 44-30-73; 5
198	198	(2) Taxes imposed on a resident by other states, see § 44-30-18; 6
199	199	(3) Taxes overpaid for a prior taxable year, see § 44-30-86. 7
200	200	(d) Tax credit. 8
201	201	(1) There shall be allowed as a credit against the Rhode Island personal income tax 9
202	202	otherwise due for a taxable year, commencing for the tax year 1988, a contribution of five dollars 10
203	203	($5.00), or ten dollars ($10.00) if married and filing a joint return, to the account for the public 11
204	204	financing of the electoral system. The first two dollars ($2.00), or four dollars ($4.00) if married 12
205	205	and filing a joint return, shall go to a political party as defined in § 17-12.1-12 to be designated by 13
206	206	the taxpayer or to a nonpartisan account if so indicated up to a total of two hundred thousand dollars 14
207	207	($200,000) collectively for all parties and the nonpartisan account. The remainder shall be 15
208	208	deposited as general revenue. 16
209	209	(2) The credit for the public financing of the electoral system shall appear on the face of 17
210	210	the state personal income tax return. The tax administrator shall annually forward by August 1, all 18
211	211	contributions to said account to the state general treasurer and the treasurer shall annually remit by 19
212	212	September 1, the designated partisan contributions to the chairperson of the appropriate political 20
213	213	party and the contributions made to the nonpartisan general account shall be allocated by the state 21
214	214	general treasurer to each political party in proportion to the combined number of votes its 22
215	215	candidates for governor received in the previous election, after five percent (5%) of the amount in 23
216	216	the account is allocated to each party for each general officer elected in the previous statewide 24
217	217	election. Each political party may expend moneys received under this provision for all purposes 25
218	218	and activities permitted by the laws of Rhode Island and the United States, except that no such 26
219	219	moneys shall be utilized for expenditures to be directly made or incurred to support or defeat a 27
220	220	candidate in any election within the meaning of chapter 25 of title 17, or in any election for any 28
221	221	political party nomination, or for political party office within the meaning of chapter 12 of title 17. 29
222	222	The remaining funds shall be allocated for the public financing of campaigns for governor as set 30
223	223	forth in §§ 17-25-19 — 17-25-27. 31
224	224	(3) Child tax credit. A taxpayer that maintains a household that includes at least one 32
225	225	individual up to age eighteen (18) years, who qualifies as a dependent, as defined in section 26 U.S. 33
226	226	Code § 152, shall be allowed a tax credit for each such dependent, to be computed as provided in 34
227	227
228	228
229	229	LC000546 - Page 7 of 8
230	230	this chapter, against the tax imposed by chapters 30 of this title. The amount of the credit shall be: 1
231	231	(i) For dependent(s) up to age eighteen (18) a tax credit of one thousand dollars ($1,000) 2
232	232	shall be allowed per dependent; 3
233	233	(ii) No credit shall be allowed pursuant to this chapter unless the taxpayer claiming said 4
234	234	child tax credit has a total income for the taxable year that does not exceed one hundred thousand 5
235	235	dollars ($100,000) for a single-filer household and one hundred fifty thousand dollars ($150,000) 6
236	236	for a dual-filer household. 7
237	237	(iii) If the amount of the credit allowed under this section exceeds the taxpayer’s tax 8
238	238	liability, the division of taxation shall treat the excess as an overpayment and shall pay the taxpayer 9
239	239	the entire amount of the excess. 10
240	240	(e) Tax adjustment. 11
241	241	(1) Notwithstanding the provisions of subsection (a) of this section, for taxable years 12
242	242	ending after December 31, 1980, in the event that during a period when the general assembly is not 13
243	243	in session a change is made in the provisions of the Internal Revenue Code of the United States and 14
244	244	amendments thereto, or other provisions of the law of the United States relating to federal income 15
245	245	taxes, or the rules and regulations issued under these laws that alters the taxpayer’s federal income 16
246	246	tax liability, the tax administrator is directed to so change the Rhode Island personal income tax 17
247	247	rate of the taxpayer's federal income tax liability as to retain the tax product upon receipt of which 18
248	248	state appropriations were predicated. 19
249	249	(2) The rate so set by the tax administrator will be effective until such time as the general 20
250	250	assembly shall ratify this rate or set a different rate. 21
251	251	SECTION 3. This act shall take effect upon passage. 22
252	252	========
253	253	LC000546
254	254	========
255	255
256	256
257	257	LC000546 - Page 8 of 8
258	258	EXPLANATION
259	259	BY THE LEGISLATIVE COUNCIL
260	260	OF
261	261	A N A C T
262	262	RELATING TO TAXATION -- PERSONAL INCOME TAX -- CHILD TAX CREDIT
263	263	***
264	264	This act would establish a child tax credit of one thousand dollars ($1,000) per dependent. 1
265	265	No credit would be allowed unless the taxpayer claiming said child tax credit has a total income 2
266	266	for the taxable year that does not exceed one hundred thousand dollars ($100,000) for a single-filer 3
267	267	household and one hundred fifty thousand dollars ($150,000) for a dual-filer household. If the 4
268	268	amount of the credit allowed under this section exceeds the taxpayer’s tax liability, the division of 5
269	269	taxation shall treat the excess as an overpayment and shall pay the taxpayer the entire amount of 6
270	270	the excess. 7
271	271	This act would take effect upon passage. 8
272	272	========
273	273	LC000546
274	274	========
275	275