44-30-104. Child Tax Credit.

(b) Child Tax Credit. For tax years beginning on or after January 1, 2027, a tax credit in

the amount of three hundred thirty dollars ($330) shall be allowed for each claimed child on the

resident tax return of the eligible taxpayer.

(c) Child Tax Credit Phase Out

(1) In the case of any eligible taxpayer filing a return as a single, married filing separately,

head of household, or qualifying widow/widower taxpayer whose adjusted gross income, as

modified pursuant to § 44-30-12, for the taxable year beginning on or after January 1, 2027,

exceeds eighty-eight thousand five hundred dollars ($88,500), the credit amount shall be reduced

by the applicable percentage. The term “applicable percentage” for purposes of this subsection

means twenty (20) percentage points for each two thousand eight hundred seventy-five ($2,875)

(or fraction thereof) by which the eligible taxpayer’s adjusted gross income for the taxable year

exceeds eighty-eight thousand five hundred dollars ($88,500).

(2) In the case of any eligible taxpayer filing a return as married filing jointly taxpayer

whose adjusted gross income, as modified pursuant to § 44-30-12, for the taxable year beginning

on or after January 1, 2027, exceeds one hundred ten thousand six hundred forty dollars ($110,640),

the credit amount shall be reduced by the applicable percentage. The term “applicable percentage”

for purposes of this subsection means twenty (20) percentage points for each three thousand five

hundred ninety dollars ($3,590) (or fraction thereof) by which the eligible taxpayer’s adjusted gross

income for the taxable year exceeds one hundred ten thousand six hundred forty dollars ($110,640).

(d) Adjustment for inflation. The dollar amounts contained in subsections (b) and (c) of

this section shall be increased annually by an amount equal to:

(I) Such dollar amounts contained in subsections (b) and (c) of this section adjusted for

inflation using a base tax year of 2026, multiplied by;

(II) The cost-of-living adjustment with a base year of 2026.

(III) For the purposes of this section, the cost-of-living adjustment for any calendar year is

the percentage (if any) by which the consumer price index for the preceding calendar year exceeds

the consumer price index for the base year. The consumer price index for any calendar year is the

average of the consumer price index as of the close of the twelve-month (12) period ending on

August 31, of such calendar year.

(IV) For the purpose of this section the term “consumer price index” means the last

consumer price index for all urban consumers published by the department of labor. For the purpose

of this section the revision of the consumer price index that is most consistent with the consumer

price index for calendar year 1986 shall be used.

(V) If any increase determined under this section is not a multiple of five dollars ($5.00),

such increase shall be rounded to the next lower multiple of five dollars ($5.00).

SECTION 5. Sections 44-30-2.6 and 44-30-12 of the General Laws in Chapter 44-30

entitled "Personal Income Tax" are hereby amended to read as follows: