2025 -- S 0447
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LC000546
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2025
____________
A N A C T
RELATING TO TAXATION -- PERSONAL INCOME TAX -- CHILD TAX CREDIT
Introduced By: Senators Vargas, Lawson, DiPalma, Murray, Acosta, Gu, Appollonio,
and Britto
Date Introduced: February 26, 2025
Referred To: Senate Finance
It is enacted by the General Assembly as follows:
SECTION 1. Findings of fact. 1
(1) The health and wellbeing of Rhode Island children and their families are critical to the 2
future of our state; 3
(2) Children, youth, and their caregivers are experiencing challenges exacerbated by the 4
pandemic leading to increasing educational, behavioral health crises, as well as inflationary 5
pressures exacerbating homelessness, and food insecurity; 6
(3) Research has shown that child tax credits contribute to promotion of work, reduction 7
of poverty, and enhanced child development; 8
(4) Research has shown that child tax credits are associated with reductions in family 9
stressors and state-level maltreatment reports; 10
(5) Research has shown that child tax credit income is used to supplement basic household 11
needs and children's essentials; 12
(6) Fourteen states including Massachusetts have child tax credits and other states have 13
pending proposals in their state legislatures, including Connecticut. According to research by the 14
Institute on Taxation and Economic Policy, a combination of the existing federal child tax credit 15
and a state credit would slash child poverty rates. 16
SECTION 2. Section 44-30-2 of the General Laws in Chapter 44-30 entitled "Personal 17
Income Tax" is hereby amended to read as follows: 18
44-30-2. Rate of tax. 19
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(a) General. 1
(1)(i) A Rhode Island personal income tax is imposed upon the Rhode Island income of 2
residents and nonresidents, including estates and trusts, for the period January 1, 1971 through June 3
30, 1971 equal to twenty percent (20%) of one-half (½) of the taxpayer’s federal income tax liability 4
for the taxable year commencing January 1, 1971; for the period July 1, 1971 through December 5
31, 1971 equal to fifteen percent (15%) of one-half (½) of the taxpayer’s federal income tax liability 6
for the taxable year commencing January 1, 1971; and for each taxable year on and after January 7
1, 1972, and ending on or before December 31, 1974 equal to fifteen percent (15%) of the 8
taxpayer’s federal income tax liability; for each taxable year on and after January 1, 1975 and 9
ending on or before December 31, 1977 equal to seventeen percent (17%) of the taxpayer’s federal 10
income tax liability; for each taxable year ending after December 31, 1977 equal to nineteen percent 11
(19%) of the taxpayer’s federal income tax liability; for each taxable year ending after December 12
31, 1980 equal to nineteen and twenty-four one-hundredths percent (19.24%) of the taxpayer’s 13
federal income tax liability; for each taxable year ending after December 31, 1981 equal to twenty-14
one and nine-tenths percent (21.9%) of the taxpayer’s federal income tax liability; for the period 15
January 1, 1983 through June 30, 1983 equal to twenty-seven and five-tenths percent (27.5%) of 16
the taxpayer’s federal income tax liability; for the period July 1, 1983 and through June 30, 1984 17
equal to twenty-six percent (26%) of the taxpayer’s federal income tax liability; for the period July 18
1, 1984 and through December 31, 1984 equal to twenty-four and nine-tenths percent (24.9%) of 19
the taxpayer’s federal income tax liability; in accordance with subsection (2) of this section for the 20
period January 1, 1985 through June 30, 1985 equal to twenty-three and sixty-five one-hundredths 21
percent (23.65%) of the taxpayer’s federal income tax liability; for the period July 1, 1985 through 22
December 31, 1985, equal to twenty-two and sixty-five one-hundredths percent (22.65%) of the 23
taxpayer’s federal income tax liability; in accordance with subsection (3) of this section for January 24
1, 1986 and thereafter shall be equal to twenty-two and twenty-one one-hundredths percent 25
(22.21%) of the taxpayer’s federal income tax liability; in accordance with the Tax Reform Act of 26
1986, codified primarily at 26 U.S.C. § 1 et seq., for the period January 1, 1987 through June 30, 27
1987 shall be equal to twenty-three and ninety-six one-hundredths percent (23.96%) of the 28
taxpayer’s federal income tax liability; for the period July 1, 1987 through December 31, 1990 shall 29
be equal to twenty-two and ninety-six one-hundredths percent (22.96%) of the taxpayer’s federal 30
income tax liability; for the period January 1, 1991 through June 30, 1992 and for the period January 31
1, 1994 and thereafter shall be equal to twenty-seven and five tenths percent (27.5%) of the 32
taxpayer’s federal income tax liability; for the period July 1, 1992 through December 31, 1992 if 33
the taxpayer’s federal income tax liability is fifteen thousand dollars ($15,000) or less shall be equal 34
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to twenty-seven and five tenths percent (27.5%) of the taxpayer’s federal income tax liability but 1
if the taxpayer’s federal income tax liability is greater than fifteen thousand dollars ($15,000) shall 2
be the sum of twenty-seven and five-tenths percent (27.5%) of the taxpayer’s federal income tax 3
liability up to and including fifteen thousand dollars ($15,000) and thirty-two percent (32%) of the 4
taxpayer’s federal income tax liability in excess of fifteen thousand dollars ($15,000). 5
(ii) The effective rate for the year 1983 shall be equal to twenty-six and seventy-five 6
hundredths percent (26.75%) of the taxpayer’s federal income tax liability. The effective rate for 7
the year 1984 shall be equal to twenty-five and five-tenths percent (25.5%) of the taxpayer’s federal 8
income tax liability. 9
(iii) The effective rate for the year 1985 shall be equal to twenty- three and fifteen-10
hundredths percent (23.15%) of the taxpayer’s federal income tax liability. The effective rate for 11
the year 1987 shall be twenty-three and forty-six one-hundredths percent (23.46%) of the 12
taxpayer’s federal income tax liability. 13
(iv) For the year 1992, if the taxpayer’s federal income tax liability for the year is greater 14
than fifteen thousand dollars ($15,000), the effective rate on such the federal income tax liability 15
in excess of fifteen thousand dollars ($15,000) shall be twenty-nine and seventy-five one-16
hundredths percent (29.75%). 17
(v) The personal income tax rate for the year 1993 shall be in accordance with the following 18
schedules: 19
SCHEDULE X-RI: Single Individuals 20
FEDERAL INCOME TAX LIABILITY RI INCOME TAX 21
Over But not Over Pay + % On Excess Of The Amount Over- 22
$0 - $15,000 $0 27.5% $0 23
15,000 - 31,172 4,125 32% 15,000 24
31,172 - 79,772 9,300 27.55% 31,172 25
79,772 22,689 25.05% 79,772 26
The above rate table may not be used by a taxpayer who files a federal Schedule D and has 27
taxable income in excess of $115,000.00. Those individuals must file a Rhode Island Schedule D. 28
SCHEDULE Y-1-RI: Married Filing Jointly or Qualifying Widow(er) 29
FEDERAL INCOME TAX LIABILITY RI INCOME TAX 30
Over But not Over Pay + % On Excess Of The Amount Over- 31
$0 - $15,000 $0 27.5% $0 32
15,000 - 35,929 4,125 32% 15,000 33
35,929 -75,528 10,822 27.55% 35,928 34
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75,528 21,732 25.05% 75,528 1
The above rate table may not be used by a taxpayer who files a federal Schedule D and has 2
taxable income in excess of $140,000.00. Those individuals must file a Rhode Island Schedule D. 3
SCHEDULE Y-2-RI: Married Filing Separately 4
FEDERAL INCOME TAX LIABILITY RI INCOME TAX 5
Over But not Over Pay + % On Excess Of The Amount Over- 6
$0 - $15,000 $0 27.5% $0 7
15,000 - 17,964 4,125 32% 15,000 8
17,964 -37,764 5,073 27.55% 17,964 9
37,764 10,528 25.05% 37,764 10
The above rate table may not be used by a taxpayer who files a federal Schedule D and has 11
taxable income in excess of $70,000.00. Those individuals must file a Rhode Island Schedule D. 12
SCHEDULE Z-RI: Head of Household 13
FEDERAL INCOME TAX LIABILITY RI INCOME TAX 14
Over But not Over Pay + % On Excess Of The Amount Over- 15
$0 - $15,000 $0 27.5% $0 16
15,000 - 33,385 4,125 32% 15,000 17
33,385 -77,485 10,008 27.55% 33,385 18
77,485 22,158 25.05% 77,485 19
The above rate table may not be used by a taxpayer who files a federal Schedule D and has 20
taxable income in excess of $127,500.00. Those individuals must file a Rhode Island Schedule D. 21
RI INCOME TAX RATE SCHEDULES FOR USE BY ESTATES AND TRUSTS 22
FEDERAL INCOME TAX LIABILITY RI INCOME TAX 23
Over But not Over Pay + % On Excess Of The Amount Over- 24
$0 - $1,405 $0 27.5% $0 25
1,405 - 2,125 386 23.68% 1,405 26
2,125 -15,000 557 21.53% 2,125 27
15,000 3,329 25.05% 15,000 28
The above rate table may not be used by a taxpayer who files a federal Schedule D and has 29
taxable income in excess of $5,500.00. Those individuals must file a Rhode Island Schedule D. 30
(vi) The purpose of the 1993 rate schedules and/or the Rhode Island Schedule D shall be 31
such that a taxpayer’s 1993 Rhode Island personal income tax liability shall remain the same as it 32
would have been prior to the enactment of the Federal Omnibus Budget Reconciliation Act of 1993, 33
(OBRA), P.L. 103-66, 107 Stat. 312. 34
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(vii) For the year 1994 through December 31, 1997, the rate shall be twenty-seven and five-1
tenths percent (27.5%) of the taxpayers entire federal income tax liability. 2
(viii) For the period January 1, 1998, through December 31, 1998, the rate shall be equal 3
to twenty-seven percent (27%) of the taxpayer’s federal income tax liability. 4
(ix) For the period January 1, 1999, through December 31, 1999, the rate shall be equal to 5
twenty-six and five-tenths (26.5%) of the taxpayer’s federal income tax liability. 6
(x) For the period January 1, 2000, through December 31, 2000, the rate shall be equal to 7
twenty-six percent (26%) of the taxpayer’s federal income tax liability. 8
(xi) For the period January 1, 2001, through December 31, 2001, the rate shall be equal to 9
twenty-five and five-tenths percent (25.5%) of the taxpayer’s federal income tax liability. 10
(xii) For the period January 1, 2002, and thereafter the rate shall be twenty-five percent 11
(25%) of the taxpayer’s federal income tax liability. 12
(2) In the event that the indexing of the federal personal income tax scheduled to take effect 13
on January 1, 1985, as enacted by the Economic Recovery Tax Act of 1981, 26 U.S.C. § 1 et seq., 14
does take effect or is replaced by similar legislation, as the result of an action of the United States 15
Congress, then the Rhode Island personal income tax rate as set forth in subdivision (a)(1) of this 16
section for the period January 1, 1985, and through June 30, 1985, shall be changed and be equal 17
to twenty-three and sixty-five one-hundredths percent (23.65%) of the taxpayer’s federal income 18
tax liability. 19
(3) In the event that the indexing of the federal personal income tax scheduled to take effect 20
on January 1, 1986, as enacted by the Economic Recovery Tax Act of 1981, 26 U.S.C. § 1 et seq., 21
does take effect or is replaced by similar legislation as the result of an action of the United States 22
Congress, then the Rhode Island personal income tax rate as set forth in subdivision (a)(1) of this 23
section for the period January 1, 1986, and thereafter shall be changed and be equal to twenty-two 24
and twenty-one one-hundredths percent (22.21%) of the taxpayer’s federal income tax liability. 25
(b) Federal income tax liability. Federal income tax liability shall be the amount of federal 26
income tax without deduction for any new federal credit(s) enacted after January 1, 1996, 27
(excluding self-employment tax, social security tax or any supplemental Medicare premium) or 28
supplemental premium surcharge imposed by the Medicare Catastrophic Coverage Act of 1988 29
(P.L. 100-360), codified primarily at 42 U.S.C. § 1395 et seq., which the taxpayer would have been 30
liable if the taxpayer had paid federal income tax based on federal taxable income as adjusted by 31
the modifications provided in parts II and III of this chapter. The federal taxable income shall not 32
include modifications which would decrease federal taxable income resulting from the applications 33
of § 15 of chapter 489 of the public laws of 1923, as amended by § 8 of chapter 151 of the public 34
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laws of 1963; §§ 28-17-3, 36-10-32, 45-21-45, or any other sections of Rhode Island law which 1
would provide or would be construed to provide that any pension, annuity, retirement allowance, 2
benefit, or right shall be exempt from any state tax. 3
(c) Cross references. For credit in respect of: 4
(1) Taxes withheld on wages, see § 44-30-73; 5
(2) Taxes imposed on a resident by other states, see § 44-30-18; 6
(3) Taxes overpaid for a prior taxable year, see § 44-30-86. 7
(d) Tax credit. 8
(1) There shall be allowed as a credit against the Rhode Island personal income tax 9
otherwise due for a taxable year, commencing for the tax year 1988, a contribution of five dollars 10
($5.00), or ten dollars ($10.00) if married and filing a joint return, to the account for the public 11
financing of the electoral system. The first two dollars ($2.00), or four dollars ($4.00) if married 12
and filing a joint return, shall go to a political party as defined in § 17-12.1-12 to be designated by 13
the taxpayer or to a nonpartisan account if so indicated up to a total of two hundred thousand dollars 14
($200,000) collectively for all parties and the nonpartisan account. The remainder shall be 15
deposited as general revenue. 16
(2) The credit for the public financing of the electoral system shall appear on the face of 17
the state personal income tax return. The tax administrator shall annually forward by August 1, all 18
contributions to said account to the state general treasurer and the treasurer shall annually remit by 19
September 1, the designated partisan contributions to the chairperson of the appropriate political 20
party and the contributions made to the nonpartisan general account shall be allocated by the state 21
general treasurer to each political party in proportion to the combined number of votes its 22
candidates for governor received in the previous election, after five percent (5%) of the amount in 23
the account is allocated to each party for each general officer elected in the previous statewide 24
election. Each political party may expend moneys received under this provision for all purposes 25
and activities permitted by the laws of Rhode Island and the United States, except that no such 26
moneys shall be utilized for expenditures to be directly made or incurred to support or defeat a 27
candidate in any election within the meaning of chapter 25 of title 17, or in any election for any 28
political party nomination, or for political party office within the meaning of chapter 12 of title 17. 29
The remaining funds shall be allocated for the public financing of campaigns for governor as set 30
forth in §§ 17-25-19 — 17-25-27. 31
(3) Child tax credit. A taxpayer that maintains a household that includes at least one 32
individual up to age eighteen (18) years, who qualifies as a dependent, as defined in section 26 U.S. 33
Code § 152, shall be allowed a tax credit for each such dependent, to be computed as provided in 34
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this chapter, against the tax imposed by chapters 30 of this title. The amount of the credit shall be: 1
(i) For dependent(s) up to age eighteen (18) a tax credit of one thousand dollars ($1,000) 2
shall be allowed per dependent; 3
(ii) No credit shall be allowed pursuant to this chapter unless the taxpayer claiming said 4
child tax credit has a total income for the taxable year that does not exceed one hundred thousand 5
dollars ($100,000) for a single-filer household and one hundred fifty thousand dollars ($150,000) 6
for a dual-filer household. 7
(iii) If the amount of the credit allowed under this section exceeds the taxpayer’s tax 8
liability, the division of taxation shall treat the excess as an overpayment and shall pay the taxpayer 9
the entire amount of the excess. 10
(e) Tax adjustment. 11
(1) Notwithstanding the provisions of subsection (a) of this section, for taxable years 12
ending after December 31, 1980, in the event that during a period when the general assembly is not 13
in session a change is made in the provisions of the Internal Revenue Code of the United States and 14
amendments thereto, or other provisions of the law of the United States relating to federal income 15
taxes, or the rules and regulations issued under these laws that alters the taxpayer’s federal income 16
tax liability, the tax administrator is directed to so change the Rhode Island personal income tax 17
rate of the taxpayer's federal income tax liability as to retain the tax product upon receipt of which 18
state appropriations were predicated. 19
(2) The rate so set by the tax administrator will be effective until such time as the general 20
assembly shall ratify this rate or set a different rate. 21
SECTION 3. This act shall take effect upon passage. 22
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- PERSONAL INCOME TAX -- CHILD TAX CREDIT
***
This act would establish a child tax credit of one thousand dollars ($1,000) per dependent. 1
No credit would be allowed unless the taxpayer claiming said child tax credit has a total income 2
for the taxable year that does not exceed one hundred thousand dollars ($100,000) for a single-filer 3
household and one hundred fifty thousand dollars ($150,000) for a dual-filer household. If the 4
amount of the credit allowed under this section exceeds the taxpayer’s tax liability, the division of 5
taxation shall treat the excess as an overpayment and shall pay the taxpayer the entire amount of 6
the excess. 7
This act would take effect upon passage. 8
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