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 purposes. Additions include interest from non-Rhode Island state obligations, certain dividends, nonqualified withdrawals from tuition savings programs, 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 a carryover for excess tuition savings contributions and a one-time subtraction for unreimbursed organ donation expenses, excluding part-time residents and nonresidents from this benefit.

Furthermore, the bill proposes a modification to the taxable income from certain pension plans or annuities, allowing up to $50,000 to be subtracted from the federal adjusted gross income for qualifying individuals who have reached full Social Security retirement age, with various filing statuses and income thresholds. It also includes provisions for annual inflation adjustments based on the consumer price index with a base year of 2000 and specifies rounding rules for these adjustments. Additionally, any rebate issued pursuant to § 44-30-103 and included in federal gross income is considered. The act is set to take effect immediately upon passage, implementing the changes as soon as the bill becomes law.

Statutes affected:
21: 44-30-12