The bill amends Section 44-30-12 of the General Laws in Chapter 44-30, which governs personal income tax for Rhode Island residents. It introduces a new provision that allows taxpayers to subtract their foreign service officer's pension benefits from their federal adjusted gross income, effective for tax years beginning January 1, 2027. The definition of "foreign service officer" aligns with the Foreign Service Act of 1980 and related regulations.

This change aims to provide tax relief to foreign service officers by exempting their pension benefits from state income tax. The bill retains existing provisions that allow for various adjustments to federal adjusted gross income for state tax purposes, including those related to tuition savings programs, unemployment compensation, and military service pensions. Additionally, it clarifies that modifications required by partners in a partnership regarding income or deductions will be determined according to existing law referenced as 44-30-15. The act is set to take effect immediately upon passage.

Statutes affected:
2227: 44-30-12