The bill amends Chapter 44-30 of the General Laws regarding personal income tax by introducing a new section, 44-30-12.1, which provides a tax exemption for the sale of Bitcoin. Under this new provision, any sale of Bitcoin by individuals or businesses based in Rhode Island will be exempt from state taxation if the total value of sales is less than one thousand dollars ($1,000) per day, with a limit of ten sales within a thirty-day cycle. The market value of Bitcoin at the time of each transaction will determine the value of sales, and any gains exceeding the daily threshold will still be subject to state income and capital gains tax.

The bill defines several terms related to Bitcoin transactions, including "Bitcoin," "Business," "Individual," "Market value," and "Sale of Bitcoin." It mandates that individuals and businesses maintain appropriate records of their transactions, including the total value of sales per day and other relevant details. The Department of Business Regulation is tasked with promulgating rules and regulations necessary for implementing the provisions of this section, including establishing a process for verifying the market value of Bitcoin at the time of sale. The Department of Revenue will establish mechanisms to ensure compliance with the new regulations. The act will take effect upon passage.