Two Rhode Island lawmakers are pushing for an increase in the “circuit breaker” tax credit to help low-income seniors and people with disabilities.
Sen. Linda L. Ujifusa (D-Dist. 11, Portsmouth Bristol) and Rep. Megan Cotter (D-Dist. 39, Exeter, Richmond, Hopkinton) are sponsoring a bill to raise the eligibility limit from $39,275 to $50,000 and boost the maximum credit from $675 to $850.
Ujifusa points out that Rhode Islanders with low incomes are hit hardest by the housing crisis and pay a bigger chunk of their income due to the state’s regressive tax structure. She adds that for those on fixed incomes, like seniors and people with disabilities, rising housing costs can force them to cut back on other essentials just to keep a roof over their heads.
“Rhode Islanders with low incomes are bearing the heaviest burdens of our housing crisis, as well as paying a far greater share of their income under our regressive tax structure. For those with fixed incomes, such as seniors and people with disabilities, higher housing costs can mean they are going without other necessities to keep a roof over their heads. They need relief. Raising the limits on the circuit breaker credit is a very effective, targeted way to help many of the households who are facing the greatest housing cost burdens,” said Senator Ujifusa.
The circuit breaker credit program offers an income tax credit to eligible homeowners and renters who are either over 65 or disabled. The credit is based on how much their property tax exceeds a certain percentage of their income.
Cotter highlights the dire housing situation, noting that there are barely any communities in Rhode Island where a household earning $50,000 can afford an average two-bedroom apartment. She stresses that people trying to make ends meet at this income level need more support.
“We are at a point where there are hardly any communities in our state where a household making $50,000 can afford an average two-bedroom apartment. People trying to make ends meet on that level of income need more help. Extending the circuit breaker credit to more of them should absolutely be part our state’s strategy for addressing our housing affordability crisis,” said Representative Cotter.
Senior Agenda Coalition Policy Advisor Maureen Maigret suggests that increasing the circuit breaker tax credit or refund is a straightforward way to ease the housing cost burden for these individuals.
“With the median home price in Rhode Island doubling in the last five years, housing has risen to be one of the top issues concerning our older population. Rhode Island property taxes are some of the highest in the nation and are especially burdensome for the many older Rhode Islanders who rely on fixed incomes and for those on Social Security Disability. Census data shows one out of four older Rhode Island home owners are housing cost burdened (paying more than 30% of their income on housing costs) as are almost half of older renters,” said Maigret. “Increasing the circuit breaker tax credit or refund is a simple way to ease the housing cost burdens for them.”
The proposed legislation (2025-H 5194, 2025-S 0027) is currently under review in the Rhode Island General Assembly.