The bill proposes amendments to Section 44-11-2 of the General Laws in Chapter 44-11, which is titled "Business Corporation Tax." The bill includes an insertion that specifies the imposition of tax on corporations, setting the tax rate at nine percent (9%) of net income for the taxable year, with a reduction to seven percent (7.0%) for tax years beginning on or after January 1, 2015. It also details the conditions under which a corporation can deduct fifty percent (50%) of the excess of capital gains over capital losses from its net income. Additionally, the bill outlines the tax obligations for personal holding companies, regulated investment companies, and real estate investment trusts, which involve paying a tax based on gross income or a minimum tax amount, whichever is greater.

The bill also includes a deletion of subsection (e), which previously established a minimum tax of four hundred fifty dollars ($450) for any corporation, including small business corporations with an election under subchapter S, with a reduction to four hundred dollars ($400) for tax years beginning on or after January 1, 2017. The legislative council explains that the act would repeal the corporation minimum tax and that the act would take effect upon passage.

Statutes affected:
2052: 44-11-2