The bill amends Section 44-22-1.1 of the General Laws concerning estate and transfer taxes, specifically addressing the tax on the net estate of decedents. The key insertion in the bill establishes a new tax threshold for decedents whose death occurs on or after January 1, 2026, setting the net taxable estate exemption at four million dollars ($4,000,000). The tax imposed will be based on the maximum credit for state death taxes as allowed by 26 U.S.C. § 2011, as it was in effect as of January 1, 2001. Additionally, a Rhode Island credit will be allowed against any tax determined, with provisions for annual adjustments based on the Consumer Price Index starting January 1, 2027.

The bill also includes several deletions, specifically removing references to scheduled increases in the unified credit provided in 26 U.S.C. § 2010 that were in effect on or after January 1, 2003. The overall effect of the bill is to modernize the estate tax framework in Rhode Island, providing a higher exemption threshold for larger estates while maintaining the structure of the tax based on federal guidelines. The act is set to take effect upon passage.

Statutes affected:
187: 44-22-1.1