The bill amends Section 44-30-12 of the General Laws in Chapter 44-30, which pertains to the calculation of Rhode Island income for resident individuals. It introduces both insertions and deletions to the current law. The insertions include additional income items to be added to the federal adjusted gross income (AGI) for the purpose of calculating state income, such as interest from non-Rhode Island state obligations, certain federal interest or dividend income, nonqualified withdrawals from tuition savings programs, unemployment compensation not included in federal AGI, specific sales tax deductions, and amounts of forgiven Paycheck Protection Program loans over $250,000. Conversely, the bill allows for subtractions from the federal AGI, including interest on U.S. obligations, certain tuition savings program transactions, contributions to tuition savings programs (with limitations), insurance benefits for dependents, and a one-time deduction of up to $10,000 for unreimbursed living organ donation expenses, with the caveat that part-time residents or nonresidents cannot claim the organ donation expenses.

Additionally, the bill introduces a new provision for the modification of state tax liability through the deduction of charitable contributions made to any federally-recognized organization under IRC 501(c)(3). This is the sole change made to the existing law in the bill regarding charitable contributions. The bill is set to take effect immediately upon passage, as indicated by the included clause. The Legislative Council's explanation emphasizes that the act's purpose is to allow for a modification for charitable contributions to any federally-recognized organization under IRC 501(c)(3).

Statutes affected:
5807: 44-30-12