The bill amends Section 44-22-1.1 of the General Laws in Chapter 44-22, titled "Estate and Transfer Taxes — Liability and Computation," to update the tax imposed on the transfer of the net estate of decedents. The new insertion specifies that for decedents whose death occurs on or after January 1, 2025, the tax will only be imposed if the net taxable estate exceeds four million dollars ($4,000,000). The tax will be equal to the maximum credit for state death taxes allowed by 26 U.S.C. § 2011 as it was in effect as of January 1, 2001. Additionally, a Rhode Island credit will be allowed against any tax determined, and beginning on January 1, 2026, and each January 1 thereafter, the Rhode Island credit amount will be adjusted according to the Consumer Price Index for all Urban Consumers (CPI-U), compounded annually and rounded to the nearest five-dollar increment.

The bill also clarifies that for decedents whose death occurs on or after January 1, 2002, the terms "gross taxable estate," "federal gross estate," or "net taxable estate" have the same meanings as in the laws of the United States, specifically referencing the Internal Revenue Code of 1954 as it was in effect as of January 1, 2001, unless otherwise provided. The act would take effect upon passage, and it aims to increase the net taxable estate exemption to four million dollars ($4,000,000) for deaths occurring on or after January 1, 2025.

Statutes affected:
2064: 44-22-1.1