The bill amends Section 44-14-14.1 of the General Laws concerning the taxation of banks, specifically addressing the apportionment and allocation of income for banking institutions operating both within and outside the state. It establishes that these institutions must allocate and apportion their net income according to specified factors, including receipts, property, and payroll. The bill allows for adjustments to these factors if they do not fairly represent the institution's business activity in the state, enabling taxpayers to petition for alternative methods of income determination if necessary.

Additionally, for tax years beginning on or after January 1, 2025, the bill introduces a new option for banking institutions to elect to apportion their net income solely based on their receipts factor. This election must be filed with the tax administrator and will remain in effect for subsequent years unless revoked due to a material change in circumstances. Notably, banking institutions that elect this method shall not claim any benefits pursuant to chapter 64.5 of title 42. The act is set to take effect upon passage and will apply to tax years starting January 1, 2025.

Statutes affected:
8611: 44-14-14.1