The bill amends Rhode Island's personal income tax laws, particularly focusing on the definition of "Rhode Island taxable income" and the state's personal income tax rates. It excludes certain increases in the basic standard deduction for married couples filing jointly and sets forth Rhode Island personal income tax rates as a percentage of federal income tax rates prior to the EGTRRA. The bill details progressive tax brackets, inflation adjustments, and standard deduction amounts, including additional deductions for individuals aged 65 or older or blind. It also outlines the phase-out of itemized deductions and exemption amounts based on adjusted gross income, with inflation adjustments based on specific years. The alternative minimum tax (AMT) is addressed with rates and exemption amounts that are inflation-adjusted. The bill defines the cost-of-living adjustment (COLA) based on the consumer price index (CPI) for urban consumers, with 1986 as the base year. Additionally, the bill specifies rounding rules for tax increases, lists various federal credits available to Rhode Island taxpayers, and notes the deletion of a previously available credit. It significantly increases the Rhode Island earned-income credit to 50% of the federal credit for tax years beginning on or after January 1, 2024, and details the refundable portion of this credit. The bill mandates that the tax administrator recalculate and submit revisions to the general assembly every three years. It also lists various tax credits permissible under Rhode Island law, including the Property Tax Relief Credit, Historic Structures Tax Credit, and credits for contributions to Scholarship Organizations, among others. The act would take effect upon passage, implementing the changes immediately once enacted. Specific insertions and deletions within the current law are not identified in the summary due to the absence of and tags in the provided text.

Statutes affected:
5470: 44-30-2.6