The bill amends Section 44-30-12 of the General Laws in Chapter 44-30, which governs personal income tax for resident individuals in Rhode Island. It introduces a gradual phase-in of modifications to federal adjusted gross income specifically for social security income. Starting with tax years beginning on or after January 1, 2026, individuals may subtract 25% of their social security income from federal adjusted gross income. This percentage will increase to 50% for tax years beginning on or after January 1, 2027, to 75% for tax years beginning on or after January 1, 2028, and will reach 100% for tax years beginning on or after January 1, 2029.

The bill also includes provisions for other income types and adjustments, but the primary focus is on the treatment of social security income. The act will take effect upon its passage.

Statutes affected:
183: 44-30-12