PROVIDENCE, R.I. — A Rhode Island lawmaker is proposing to nearly double the state’s earned income tax credit, arguing the move would reward work and provide relief to families struggling with higher costs — an idea long favored by some fiscal conservatives as an alternative to raising the minimum wage.

Rep. William W. O’Brien, a Democrat from North Providence, introduced legislation (H 7594) that would increase the state earned income tax credit to 30% of the federal credit for tax years beginning in 2027. Rhode Island’s credit is currently set at 16%. The bill has been referred to the House Finance Committee.

“Raising this important income tax credit will go toward helping so many residents and small businesses in our state,” said O’Brien in a statement. “By raising the tax credit to 30 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, families and small businesses, this tax credit would go a very long way.”

The earned income tax credit, or EITC, is generally aimed at low- to moderate-income workers and is tied to earnings. Supporters often describe it as pro-work assistance delivered through the tax code, while critics typically focus on cost to the state and whether expanding refundable credits should be paired with broader tax and spending restraint.

EITC is also framed by free-market advocates as a preferred path to helping working families without imposing new costs on employers. The Rhode Island Center for Freedom & Prosperity opposes minimum wage hikes as anti-jobs mandates and argues that increasing the EITC is a superior alternative that avoids placing further burdens on employers.

O’Brien’s bill would take effect upon passage, with the new 30% credit applying beginning in tax year 2027, according to the legislative summary attached to the legislation.