The bill amends Section 44-30-12 of the General Laws in Chapter 44-30, which governs the Rhode Island income tax for resident individuals, with new provisions set to take effect on January 1, 2025. It introduces modifications to the federal adjusted gross income for state tax purposes, including the addition of interest income from out-of-state obligations, nonqualified withdrawals from tuition savings programs, and unemployment compensation. The bill also allows for subtractions related to contributions to tuition savings programs, certain withdrawals, and organ donation expenses, while establishing specific limitations and qualifications for these modifications, such as caps on tuition savings contributions and conditions for claiming organ donation expenses.

Additionally, the bill proposes new deductions aimed at alleviating financial burdens for residents, including a subtraction for interest payments on outstanding student loans and adjustments for taxable Social Security and retirement income from certain pension plans. It modifies existing provisions for military service pensions, allowing for the subtraction of military pension benefits from federal adjusted gross income starting in 2023. The bill also addresses investments in Rhode Island opportunity zones and stipulates that any rebates issued to taxpayers will be included in gross income for federal tax purposes. Overall, the legislation seeks to refine the state's personal income tax regulations to better support residents facing various financial challenges.

Statutes affected:
5759: 44-30-12