The bill amends Section 44-30-2.6 of the General Laws in Chapter 44-30, which pertains to "Personal Income Tax," by updating the definition of "Rhode Island taxable income" and adjusting the tax rates for various income levels based on different filing statuses. Notably, the definition now excludes the increase in the basic standard deduction for married couples filing jointly as provided in previous federal tax relief acts. The bill establishes a new personal income tax rate of three percent (3%) on taxable income exceeding approximately $625,000, specifically targeting the top one percent of earners, effective from January 1, 2026. Additionally, it includes provisions for inflation adjustments to ensure the tax code remains relevant over time. Furthermore, the bill modifies the Rhode Island earned-income credit structure, gradually increasing the percentage of the federal earned-income credit that taxpayers can claim, and clarifies the definition of "Rhode Island taxable income." It also outlines specific deductions and exemptions, including the Rhode Island Basic Standard Deduction and the exemption amount, which will be adjusted for inflation. The act is set to take effect on January 1, 2026, as indicated by the inserted language: SECTION 2. This act shall take effect on January 1, 2026.. The bill aims to modernize the tax code while ensuring equitable treatment of taxpayers across different income levels.