The bill amends Section 44-11-2 of the General Laws in Chapter 44-11, entitled "Business Corporation Tax." It introduces a new subsection (f) which provides for a refund to corporations whose annual gross income is less than the four hundred dollar ($400) minimum tax imposed by subsection (e) of this section. The refund amount is the difference between the corporation's annual gross income and the $400 minimum tax, but it cannot exceed the $400 minimum tax paid.

The bill also specifies that the tax imposed on any corporation, including a small business corporation with an election in effect under subchapter S of the Internal Revenue Code, shall not be less than $400 for tax years beginning on or after January 1, 2017. This is a decrease from the previous minimum tax of $450. The act would take effect upon passage, and it aims to provide relief to corporations with very low annual gross income by refunding them the difference between their gross income and the minimum tax required.

Statutes affected:
2593: 44-11-2