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 is not less than four hundred fifty dollars ($450) for tax years beginning on or after January 1, 2017. The bill proposes to reduce this minimum tax to three hundred fifty dollars ($350) for tax years beginning on or after January 1, 2025.

The bill also maintains the existing provisions regarding the imposition of tax based on net income, with a tax rate of seven percent (7.0%) for corporations, and outlines the conditions under which different types of corporations, such as personal holding companies, regulated investment companies, and real estate investment trusts, are taxed. The bill would take effect upon passage, thereby enacting the reduced corporate minimum tax of three hundred fifty dollars ($350) from the specified date.

Statutes affected:
7489: 44-11-2