The bill amends Section 44-30-12 of the General Laws in Chapter 44-30, titled "Personal Income Tax," to adjust the definition of Rhode Island income for resident individuals. It specifies additions and subtractions to the federal adjusted gross income for state income tax calculations. Additions include interest from non-Rhode Island state obligations, certain dividends, nonqualified tuition savings withdrawals, unemployment compensation not included in federal income, and amounts over $250,000 from forgiven Paycheck Protection Program loans. Subtractions include interest on U.S. obligations, certain tuition savings withdrawals, contributions to tuition savings programs (with limitations), and specific modifications for insurance benefits, organ donation expenses, and taxable Social Security income. The bill introduces limitations on tuition savings contributions and a carryover for excess contributions, as well as a one-time subtraction for unreimbursed organ donation expenses, not applicable to part-time residents or nonresidents.

Furthermore, the bill allows for the subtraction of all Social Security income from federal adjusted gross income for tax years starting on or after January 1, 2024. It also includes provisions for inflation adjustments based on the year 2000, detailing the use of the consumer price index and rounding methods for increased dollar amounts. The bill's effective date is immediate upon passage, meaning the changes would be implemented as soon as the bill is enacted into law.

Statutes affected:
5145: 44-30-12