The bill amends Section 44-11-2.3 of the General Laws concerning the Business Corporation Tax, specifically addressing the taxation of pass-through entities. It provides that credits issued pursuant to this section will be refundable. The member credit shall be allowed in full against Rhode Island individual income tax liability for the taxable year in which the entity-level tax was paid, and any portion of the credit that exceeds the member's Rhode Island tax liability shall be refunded to the member.

Additionally, the bill includes a provision stating that this section will sunset and no longer apply to taxable years beginning after December 31 of the year in which the federal limitation on state and local tax deductions under 164(b)(6) of the Internal Revenue Code is repealed, unless further amended by the General Assembly. The Commissioner of Revenue is authorized to promulgate rules and regulations to implement this section, including rules governing elections, allocations, reporting, and the calculation of the refundable credit. The act will take effect upon passage.

Statutes affected:
8187: 44-11-2.3