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 modification to the calculation of Rhode Island income by allowing individuals to subtract a percentage of their social security income from federal adjusted gross income over a four-year period. Specifically, for tax years beginning on or after January 1, 2026, individuals may subtract twenty-five percent (25%) of social security income; for tax years beginning on or after January 1, 2027, fifty percent (50%); for tax years beginning on or after January 1, 2028, seventy-five percent (75%); and for tax years beginning on or after January 1, 2029, one hundred percent (100%).

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

Statutes affected:
183: 44-30-12