Allows an income tax credit for employer contributions to an eligible employee's ABLE account, for a maximum credit of two thousand dollars ($2,000) per employee, per year.
Summary
H6008 amends Rhode Island’s business corporation tax and personal income tax statutes to create and conform to a new tax credit for employer contributions to an eligible employee’s ABLE account. Under the bill, an employer may claim an income tax credit for contributions made to an employee’s ABLE account, up to $2,000 per employee per year. The bill also inserts this credit into the list of allowable credits under the personal income tax chapter and makes corresponding conforming changes so the credit is recognized in both the corporate and personal income tax provisions.
The measure is framed as a tax incentive tied to savings accounts for individuals with disabilities. ABLE accounts are tax-advantaged accounts used to help eligible individuals save for disability-related expenses without jeopardizing certain public benefits. By allowing employers to receive a credit for contributing to these accounts, the bill is intended to encourage private support for employee financial security and disability-related savings.
Impact
The bill would amend §§ 44-11-2 and 44-30-2.6 of the Rhode Island General Laws. In practical terms, it expands the state tax code to recognize employer contributions to ABLE accounts as a creditable item against tax liability, with a cap of $2,000 per employee per year. It also adds the ABLE contribution credit to the list of credits available under the personal income tax chapter and preserves the rule that no other credits are available unless specifically authorized. The bill would take effect upon passage and would affect employers making ABLE contributions, employees eligible for ABLE accounts, and the state’s tax administration.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the overall sentiment appears neutral to favorable toward the policy goal of supporting disability savings. The bill’s sponsor list suggests interest from multiple representatives, and the explanation describes the measure in straightforward, supportive terms. Because no committee transcript or voting history is provided, there is no documented opposition or recorded debate to indicate broader legislative sentiment.
Contention
No specific points of contention are documented in the provided materials. Potential areas of discussion, if raised, would likely involve the fiscal cost of the new credit, whether the $2,000-per-employee cap is appropriately sized, and whether the credit should be limited to employer contributions to ABLE accounts rather than broader disability-related savings incentives. Another possible issue is whether the credit should be available under both corporate and personal income tax provisions, but the bill text itself does not show any explicit disagreement on that point.