The bill amends Section 44-30-12 of the General Laws in Chapter 44-30, which governs Rhode Island's personal income tax for resident individuals. It introduces a gradual subtraction of social security income from federal adjusted gross income over a four-year period, starting at 25% for tax years beginning on or after January 1, 2027, increasing to 50% for tax years beginning on or after January 1, 2028, then to 75% for tax years beginning on or after January 1, 2029, and finally reaching 100% for tax years beginning on or after January 1, 2030.

The bill does not include changes related to interest income from out-of-state obligations, nonqualified withdrawals from tuition savings programs, military service pensions, organ donation expenses, inflation adjustments on certain income thresholds, or adjustments related to federal income tax deductions disallowed under 26 U.S.C. 280E, as these were not part of the new language introduced in the bill. The act will take effect upon its passage.

Statutes affected:
2539: 44-30-12