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3/12/2026
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Sen. Vargas bill would create $650 child tax credit
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 STATE HOUSE – Sen. Lammis J. Vargas is proposing a $650 refundable child tax credit that would provide relief to families and help reduce child poverty.
“A refundable child tax credit is real relief because it puts money directly into the hands of parents who will use it on rent, food and all the things their family needs. Unlike the dependent exemption, it reaches the families who are struggling the most. The majority of low- and middle-income families are strained by the incredible cost of housing, groceries and utilities right now, and a child tax credit is an effective way to provide direct relief to all of them,” said Senator Vargas (D-Dist. 28, Cranston, Providence). “This credit will mean fewer instances of kids going to bed hungry, and less economic stress for their parents. That’s an investment in healthier, stronger kids and a healthier, stronger future for Rhode Island.”
The legislation (2026-S 2823) would allow parents and guardians to claim a $650 income tax credit for each of their children 18 or younger, instead of claiming the dependent exemption for them, starting with the 2027 tax year. While the dependent exemption is also intended to provide relief for families by reducing the amount of their income subject to income tax, it provides less support to those in lower tax brackets than higher ones, and it does little or nothing for those whose incomes are so low they have little or no tax liability.
Because this tax credit would be fully refundable, even those without tax liability who qualify could file a return and receive it.
Massachusetts and Maine have both similarly switched from exemptions to child tax credits in recent years, and evidence shows that the change has provided well-targeted support for families who need it.
Gov. Dan McKee has also included a child tax credit in his proposed state budget, but at $325, it is half the amount Senator Vargas is proposing.
The RIght from the Start Campaign and the Rhode Island Coalition for Children and Families are among the bill’s supporters. A child tax credit was among the priorities identified by RIght from the Start in a request to state leaders before the filing of the state budget, a request signed by 47 health and welfare organizations in Rhode Island.
For more information, contact:
Meredyth R. Whitty, Publicist
State House Room 20
Providence, RI 02903
(401) 222-1923
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