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, individuals and businesses based in Rhode Island can sell Bitcoin without incurring state taxation, provided that the total value of sales does not exceed one thousand dollars ($1,000) per day and is limited to ten sales within a thirty-day period. 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 exemption applies solely to state taxation and does not affect any federal tax obligations. The bill requires individuals and businesses engaging in exempt Bitcoin transactions to maintain appropriate records of each transaction, including the total value of sales per day, date, and other relevant details, which must be provided to the Department of Revenue upon request for audit or compliance verification purposes. The Department of Business Regulation is tasked with promulgating rules and regulations necessary to implement this section, including establishing a process for verifying the market value of Bitcoin at the time of sale. The act will take effect upon passage.