The bill seeks to amend Section 44-30-12 of the Rhode Island General Laws, which governs the personal income tax for residents. It specifies various additions and subtractions to the federal adjusted gross income for the purpose of calculating Rhode Island income tax. Additions include interest from non-Rhode Island obligations, certain nonqualified withdrawals from tuition savings programs, unemployment compensation excluded from federal income, and amounts over $250,000 from forgiven Paycheck Protection Program loans. Subtractions include interest on U.S. obligations, specific withdrawals and contributions to tuition savings programs, and certain insurance benefits. Notably, the bill introduces a phased subtraction of social security income from federal adjusted gross income, starting with 25% in 2025 and increasing to 100% by 2028. It also allows for a one-time subtraction of up to $10,000 for individuals who donate an organ for transplantation. There are no deletions mentioned in the provided text.

Additionally, the bill outlines that taxpayers can deduct unreimbursed organ donation expenses from their income and sets thresholds for taxable Social Security income based on federal adjusted gross income and age, with provisions for annual inflation adjustments. It also proposes a phased increase in the modification amount for taxable retirement income from certain pension plans or annuities, starting with an increase from $15,000 to $20,000 for tax years beginning on or after January 1, 2023. Other modifications include those for investments in Rhode Island opportunity zones, military service pensions, and rebates included in federal gross income. The bill also addresses the Rhode Island fiduciary adjustment and partnership-related income or deductions. The effective date of the bill is upon passage, with the intention to gradually implement modifications to the federal adjusted gross income for social security income over a four-year period.

Statutes affected:
2158: 44-30-12