The bill amends Section 44-30-12 of the General Laws in Chapter 44-30, which pertains to personal income tax for resident individuals in Rhode Island. It introduces new legal language stating that the Rhode Island income of a resident individual will be defined as their adjusted gross income for federal income tax purposes, with specific modifications. Notably, the bill includes provisions for modifications that increase or decrease federal adjusted gross income, such as the addition of nonqualified withdrawals from tuition savings programs and the subtraction of certain pension and annuity incomes.

Significantly, the bill modifies the treatment of taxable Social Security income, allowing for a reduction in federal adjusted gross income for tax years beginning on or after January 1, 2026, for all taxable Social Security income includible in federal adjusted gross income. The act is set to take effect upon passage.

Statutes affected:
409: 44-30-12