This bill amends Section 44-30-12 of the General Laws to define the Rhode Island income of a resident individual as their adjusted gross income for federal income tax purposes, with certain modifications. The bill includes a list of modifications that increase federal adjusted gross income, such as interest income on obligations of any state other than Rhode Island, interest or dividend income on obligations or securities of the United States, and nonqualified withdrawals from a tuition savings program. It also includes modifications that reduce federal adjusted gross income, such as interest income on obligations of the United States and contributions to a tuition savings program.

The bill also proposes several modifications to the personal income tax laws in Rhode Island. It adjusts the income thresholds for individuals eligible for a deduction based on their Social Security benefits and includes an adjustment for inflation each year. It modifies the taxable retirement income from certain pension plans or annuities by increasing the maximum amount of taxable pension and/or annuity income that can be deducted from federal adjusted gross income, with an adjustment for inflation each year. The bill also allows for modifications to income for investments in Rhode Island opportunity zones, military service pensions, and interest payments on outstanding student loans.

Statutes affected:
7120: 44-30-12