This bill amends Section 44-30-2.6 of the General Laws in Chapter 44-30, which pertains to personal income tax in Rhode Island. It revises the definition of Rhode Island taxable income to exclude the increase in the basic standard deduction amount for married couples filing jointly. The bill sets the personal income tax rate at 25.5% for the tax year 2001 and 25% for the tax year 2002 and thereafter, with rate schedules varying by filing status. It adjusts the exemption amount for the alternative minimum tax for inflation and modifies itemized and standard deductions based on filing status and age. The bill also introduces an alternative minimum tax, calculated as the excess of the tentative minimum tax over the regular tax, with provisions for exemption amounts and phase-outs.

Furthermore, the bill imposes a 25% tax on certain federal taxes and allows for the averaging of farm income for individuals in farming or fishing businesses. It includes cost-of-living adjustments based on the consumer price index, with 1986 as the base year. The bill outlines rounding rules for tax increases, specifies tax credits available to Rhode Island taxpayers, and sets the Rhode Island earned-income credit at 16% for tax years beginning on or after January 1, 2024. It also introduces a new subsection providing for manufacturers' investment tax credits, retroactive to the tax year 2022, and specifies that no other state and federal tax credit shall be available to taxpayers under this chapter, except as provided in the new subsection. The act will take effect upon passage and apply retroactively from January 1, 2022.

Statutes affected:
7929: 44-30-2.6