Rhode Island EITC Increases to 12.5%
June 30, 2015Print
By Lauren Pescatore
Moments ago, Rhode Island Gov. Gina Raimondo signed into law a budget that increases the state’s Earned Income Tax Credit (EITC) from 10 to 12.5 percent of the federal credit – a first step in restoring recent cuts made to the size of the state’s EITC.
Just last year, Rhode Island’s EITC was reduced from 25 to 10 percent of the federal credit, but made fully refundable. State advocates worked diligently throughout the year to engage Rhode Islanders and inform lawmakers on the importance of expanding the credit. Rhode Island’s larger EITC will help more than 80,000 workers in the state keep more of their earnings in order to support themselves and their families.
Rhode Island is now the third in a string of states to see positive EITC activity this session. Just last week, California became the 26th state to offer an EITC, while New Jersey increased its credit yesterday from 20 to 30 percent of the federal credit. We’re hopeful for a positive outcome in Michigan – the only state currently considering eliminating their existing credit.