The bill amends Section 44-11-2 of the General Laws concerning the Business Corporation Tax in Rhode Island. It establishes that each corporation will pay a tax of nine percent (9%) of net income for the taxable year, with a reduced rate of seven percent (7%) for tax years beginning on or after January 1, 2015. Additionally, it specifies that small business corporations with an election under subchapter S will not be subject to the Rhode Island income tax on corporations, except for income subjected to federal tax under subchapter S.

The bill introduces a minimum tax of four hundred dollars ($400) for corporations starting from tax years beginning on or after January 1, 2017. It exempts small business corporations with an election under subchapter S from paying this minimum tax in their first year of existence when a tax return is due.

Key insertions in the bill clarify the imposition of tax and the exemption for small business corporations in their first year. The bill aims to provide relief to new small businesses while maintaining tax obligations for other corporations.

Statutes affected:
1045: 44-11-2