The bill introduces a new chapter titled "GUN SAFE TAX CREDIT" to the General Laws, which establishes a tax credit for taxpayers who purchase a qualified gun safe, vault, or cabinet for secure gun storage. The credit is 50% of the purchase cost, up to a maximum of $5,000, and taxpayers must provide receipts to claim the credit. The division of taxation is responsible for implementing this section, which will expire two years after the effective date unless extended. The bill also amends the General Laws to include new tax exemptions, such as for sales to charitable, educational, and religious organizations, and specifies conditions for contractors purchasing materials for exempt projects. It defines terms related to manufacturing and lists various items exempt from sales tax, such as prescription medicines and durable medical equipment.

The bill further details exemptions for sales tax, including for camps or retreat houses operated by certain organizations, educational institutions, and the sale of motor vehicles and adaptive equipment for persons with disabilities. It specifies exemptions for heating fuels, electricity, gas, and certain machinery used in manufacturing or processing tangible personal property or computer software. The bill also exempts the trade-in value of motor vehicles from tax, defines "precious metal bullion," and provides exemptions for sales to commercial and fishing vessels. Additionally, it outlines exemptions for vessels and watercraft with a Rhode Island party and charter boat license, clothing and footwear up to $250 per item, and sales of boats to nonresidents. The bill exempts sales of farm equipment, compressed air, flags, motor vehicles to certain veterans, textbooks, and tangible personal property used in hazardous waste recycling. It also exempts equipment used for research and development, numismatic coins, materials for farm structures, and telecommunications carrier access service. Finally, the bill introduces a tax exemption for the sale of qualified gun safes, vaults, or cabinets, which is set to expire two years after the effective date.

Statutes affected:
6011: 44-18-30