Rep. O’Brien introduces bill to raise earned income tax credit

Rep. O’Brien introduces bill to raise earned income tax credit

PROVIDENCE – Rep. William O’Brien, who represents District 54 in North Providence, has introduced legislation (2021-H 5366) that would raise the state’s earned income tax credit to 50 percent by Jan. 1.

“Raising this important income tax credit will go toward helping so many residents and small businesses in our state. By raising the tax credit to 50 percent, not only would we be encouraging people to work, but it would also make us a leader in the nation in encouraging and rewarding our residents to work hard. Everyone for the most part needs a little help these days and for our residents and families, this tax credit would go a very long way,” said O’Brien.

Currently, the state’s earned income tax credit is 15 percent. Under O’Brien’s legislation, for the tax years beginning on or after Jan. 1, 2022, a taxpayer entitled to a federal earned-income credit will be allowed a Rhode Island earned-income credit equal to 50 percent of the federal earned-income credit.

The legislation has been referred to the House Finance Committee.