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. It introduces a new provision that establishes a tax on the transfer of the net estate for decedents whose death occurs on or after January 1, 2026, with a taxable estate exemption set at four million dollars ($4,000,000). The tax will be calculated based on the maximum credit for state death taxes 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, and this credit amount will be adjusted annually based on the Consumer Price Index starting January 1, 2027, with adjustments compounded annually and rounded up to the nearest five dollar ($5.00) increment.

The bill clarifies that any scheduled increases in the unified credit provided in 26 U.S.C. 2010 will not apply. The act is set to take effect upon passage.

Statutes affected:
187: 44-22-1.1