The bill amends the "Residential Renewable Energy System Tax Credit" by specifying the computation of tax credits for renewable energy systems and setting maximum costs for each type of system. It also introduces a new provision allowing taxpayers to donate and transfer generated tax credits to nonprofit entities assisting low-income residents with electricity costs. The division of taxation is responsible for implementing these provisions. Additionally, the bill amends the Rhode Island income tax laws by detailing modifications to the federal adjusted gross income, including additions such as interest on out-of-state obligations and nonqualified withdrawals from tuition savings programs, and subtractions such as interest on U.S. obligations and contributions to tuition savings programs. The bill further modifies the state tax code to allow for an increased modification for taxable pension and annuity income, with a new maximum of $20,000 for certain individuals starting in the 2023 tax year. It also provides for annual inflation adjustments to the thresholds for subtracting Social Security benefits from federal adjusted gross income. A new insertion allows taxpayers to subtract from their federal adjusted gross income any residential renewable energy system tax credits that are transferred to a qualifying nonprofit entity. This act, which includes the new provision marked by , is effective upon passage.

Statutes affected:
6107: 44-57-5, 44-30-12