This bill proposes amendments to Section 44-30-12 of the General Laws, which pertains to personal income tax in Rhode Island. It introduces new definitions and modifications to the Rhode Island income of a resident individual, aligning it with their federal adjusted gross income and specifying certain additions and subtractions. Additions to the income include interest from non-Rhode Island state obligations, certain U.S. authority, commission, or instrumentality obligations, and nonqualified withdrawals from tuition savings programs. Subtractions include interest on U.S. obligations, specific modifications from other law sections, and certain withdrawals from tuition savings programs. Furthermore, the bill allows individuals who donate an organ for transplantation to subtract up to $10,000 from their federal adjusted gross income.

The bill also amends the treatment of taxable retirement income from pensions and annuities. Starting January 1, 2025, it permits a modification of up to $50,000 of such income for tax purposes for individuals who have reached the full Social Security retirement age and meet certain filing statuses and income limits. These income limits will be adjusted for inflation annually, using the year 2000 as the base year and the consumer price index for all urban consumers for the adjustments. The rounding rules for the adjustments are specified within the bill. The act is set to take effect immediately upon passage, meaning the changes will be implemented as soon as the bill becomes law.

Statutes affected:
2313: 44-30-12