This bill amends the Rhode Island General Laws regarding personal income tax, specifically updating the definition of "Rhode Island taxable income" to exclude certain increases in the standard deduction for married couples and setting state personal income tax rates as a percentage of federal income tax rates prior to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). It introduces a new tax bracket with an 11.90% rate for taxable income over $500,000 and outlines tax rates for different filing statuses. The bill also adjusts the standard deduction, exemption amounts, and alternative minimum tax (AMT) for inflation, with specific base years and CPI measures, and sets the standard deduction amounts for unmarried and married individuals, including limitations for dependents.

The bill further details the tax regulations, credits, and rounding rules for Rhode Island taxpayers. It defines the consumer price index (CPI) for adjustments, rounds tax increases to the nearest multiple of $50 ($25 for married filing separately), and specifies the allowed credits against tax for various federal credits enacted prior to January 1, 1996, excluding those from EGTRRA. Credits for earned income, property tax relief, and other specific programs are included, while other state and federal tax credits are prohibited from being used to compute tax liability under this chapter. The bill is set to take effect on January 1, 2024.

Statutes affected:
19: 44-30-2.6