The bill amends Section 44-11-2 of the General Laws in Chapter 44-11, entitled "Business Corporation Tax." It introduces a new provision that allows 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 maintains the existing tax structure, where corporations pay a tax equal to nine percent (9%) of net income, which is reduced to seven percent (7%) for tax years beginning on or after January 1, 2015. It outlines the conditions under which corporations can deduct fifty percent (50%) of the excess of capital gains over capital losses from their net income. Additionally, it specifies the tax obligations for small business corporations with an election in effect under subchapter S, and sets the minimum tax at four hundred fifty dollars ($450), which will be reduced to four hundred dollars ($400) for tax years beginning on or after January 1, 2017. The act will take effect upon passage.

Statutes affected:
2593: 44-11-2