Budget & Taxes (Income Tax)

died · Rhode Island · House May 7, 2026

HB 8438: AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX

Allows a modification to federal adjusted gross income for personal income tax for qualified tips and overtime income consistent with the federal tax treatment.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill aligns state tax treatment with federal rules for tips and overtime, providing tax relief to workers and promoting fiscal fairness.85% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Rhode Island · Senate Mar 5, 2026

SB 3018: AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX

Allows a modification for up to $50,000 of individual retirement account income that is included in federal adjusted gross income for the taxable year; provided that the person with individual retirement accounts has no income from pensions.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief by allowing IRA income modification, reducing tax burden on individuals without pension income.85% confidence

Sub-Topics Income Tax

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in committee · Rhode Island · Senate May 12, 2026

SB 2809: AN ACT RELATING TO TAXATION -- EMPLOYEE OWNERSHIP TAX CREDIT

This bill creates a tax credit for businesses in Rhode Island that transition to employee ownership models, such as employee stock ownership plans, worker cooperatives, or employee ownership trusts. The credit covers up to 50% of conversion costs, with a maximum of $100,000 for full employee ownership transitions or $25,000 for partial equity structures, and allows an additional $25,000 credit for expanding existing employee ownership programs. To qualify, businesses must grant at least 20% ownership rights to eligible workers and provide them with decision-making rights comparable to current shareholders. The tax credit applies to income tax years between January 1, 2026, and January 1, 2029, and requires businesses to apply through the state Department of Revenue for certification.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax credits for businesses transitioning to employee ownership, providing fiscal incentives that promote economic development and workforce stability while generating revenue through tax credits.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill provides tax incentives for businesses transitioning to employee ownership models, strengthening worker equity and ownership rights.85% confidence

Sub-Topics Income Tax Tax Credits Professional Licensing

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died · Rhode Island · House May 7, 2026

HB 8338: AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX

Establishes a child tax credit in the amount of six hundred fifty dollars ($650) for eligible taxpayers adjusted for inflation annually commencing January 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes a child tax credit providing tax relief to eligible taxpayers, which aligns with supporting budget and tax policies by offering financial assistance to families.90% confidence

Sub-Topics Income Tax Tax Credits Tags Children

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died · Rhode Island · Senate May 28, 2026

SB 3017: AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX

Allows a modification to federal adjusted gross income for personal income tax for qualified tips and overtime income consistent with the federal tax treatment.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief by aligning state tax treatment with federal treatment for tips and overtime, benefiting middle and lower income workers.85% confidence

Sub-Topics Business Taxes Income Tax

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passed · Rhode Island · Senate Jun 11, 2026

SB 2823: AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX

Establishes a child tax credit in the amount of three hundred thirty dollars ($330) for eligible taxpayers adjusted for inflation annually commencing January 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes a child tax credit providing direct financial relief to families, which aligns with tax relief and supports lower/middle income households.90% confidence

Sub-Topics Business Taxes Income Tax Tax Credits Tags Children

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died · Rhode Island · House Jun 2, 2026

HB 7702: AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX

HB 7702 modifies Rhode Island's personal income tax calculation by adding back certain federal tax exclusions to residents' adjusted gross income. It specifically requires adding nonqualified withdrawals from tuition savings programs (e.g., withdrawals not used for education costs) and federal PPP loan forgiveness exceeding $250,000. The bill also allows a deduction of up to $500 ($1,000 for joint filers) for contributions to Rhode Island's tuition savings program, subject to limits like excluding rollovers or non-participant contributions. This directly affects residents using tuition savings accounts or receiving federal stimulus funds, altering their taxable income for state tax purposes.

Topics ✓ Budget & TaxesSupports Budget & TaxesCloses tax loopholes by making nonqualified tuition withdrawals and large PPP forgiveness taxable, increasing state revenue. Limited tuition savings deduction is offset by revenue gain, strengthening tax base.95% confidence

Sub-Topics Income Tax

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died · Rhode Island · House May 7, 2026

HB 7594: AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX

HB 7594 increases Rhode Island's earned-income tax credit (EITC) rate to 30% for tax years beginning in 2027 and later. This change directly benefits low-to-moderate income workers who qualify for the EITC, providing them with a larger refundable tax credit. The bill amends the state's tax code to adjust the credit percentage while maintaining the existing eligibility rules for qualifying individuals and families. This is a concrete policy change that will increase tax refunds for eligible working residents starting in 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases EITC rate to 30% for low-to-moderate income workers, providing direct tax relief and larger refunds per tax code amendment.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentIncreases EITC rate to 30% for low-to-moderate income workers, directly expanding tax refunds and financial support for qualifying employees.95% confidence

Sub-Topics Income Tax Tax Credits

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died · Rhode Island · Senate Apr 30, 2026

SB 2672: AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX

SB 2672 would gradually reduce the state's personal income tax rates over time. This bill directly affects individuals who pay state income tax by lowering their tax burden through phased cuts. The key mechanism involves decreasing tax rates in scheduled steps rather than all at once, as outlined in the bill's abstract. The bill was introduced to the Senate Finance Committee on February 27, 2026, and remains in early legislative review.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill explicitly reduces personal income tax rates, providing direct tax relief to taxpayers, aligning with support indicators for tax reduction.95% confidence

Sub-Topics Business Taxes Income Tax

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died · Rhode Island · House Apr 9, 2026

HB 7696: AN ACT RELATING TO TAXATION -- EMPLOYEE OWNERSHIP TAX CREDIT

HB 7696 establishes a tax credit for Rhode Island businesses transitioning to employee ownership structures. It provides up to 50% of eligible conversion costs (capped at $100,000 for worker-owned co-ops or employee ownership trusts, $25,000 for alternate structures) and up to 50% of expansion costs (capped at $25,000) for qualified businesses expanding existing employee ownership models. The credit applies to income tax years 2026-2028 for businesses converting to or expanding employee ownership trusts, employee stock ownership plans (ESOPs), worker-owned cooperatives, or defined "alternate equity structures" that meet specific participation and allocation requirements. This directly affects qualifying businesses seeking to shift ownership to employees while retaining community investment.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax credit for employee ownership transitions, reducing business tax liability (tax relief) under state taxation policy.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill incentivizes employee ownership structures via tax credits, directly advancing worker control and benefits through ownership models, aligning with labor rights strengthening.95% confidence

Sub-Topics Income Tax Tax Credits

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