The bill amends Section 44-11-2 of the General Laws in Chapter 44-11 entitled "Business Corporation Tax." It introduces a change to the minimum tax imposed on any corporation, including small business corporations with a subchapter S election. The current minimum tax of four hundred fifty dollars ($450) for tax years beginning on or after January 1, 2017, will be reduced to three hundred fifty dollars ($350) for tax years beginning on or after January 1, 2025. This insertion is the primary change proposed by the bill.

Additionally, the bill maintains the existing structure of the corporate tax, which includes a tax equal to nine percent (9%) of net income, with a reduction to seven percent (7.0%) for tax years beginning on or after January 1, 2015. It also outlines the conditions under which corporations engaged in buying, selling, dealing in, or holding securities on their own behalf can deduct fifty percent (50%) of the excess of capital gains over capital losses from their net income. The bill also specifies the tax obligations for personal holding companies, regulated investment companies, and real estate investment trusts, as well as the treatment of small business corporations with a subchapter S election. The act would take effect upon passage.

Statutes affected:
7489: 44-11-2