This bill amends Section 44-30-12 of the General Laws to define the Rhode Island income of a resident individual as their adjusted gross income for federal income tax purposes, with specified modifications. The modifications include adding interest income on obligations of any state or its political subdivisions, interest or dividend income on obligations or securities of any authority, commission, or instrumentality of the United States, and the amount of a nonqualified withdrawal made from an account in the tuition savings program. The amendment also includes a subtraction from federal adjusted gross income for interest income on obligations of the United States and its possessions, a modification for withdrawals or distributions from the tuition savings program, and a modification for organ transplantation.

The bill also adds a new modification for any Paycheck Protection Program loan forgiven for federal income tax purposes as authorized by the Coronavirus Aid, Relief, and Economic Security Act and/or the Consolidated Appropriations Act, 2021 and/or any other subsequent federal stimulus relief packages enacted by law, to the extent that the amount forgiven exceeds $250,000. The bill also includes other modifications such as the deduction allowed for sales tax paid for a purchase of a qualified motor vehicle and the amount of any unemployment compensation received but not included in federal adjusted gross income. Additionally, the bill allows for a modification of up to $50,000 of taxable pension and/or annuity income for eligible individuals.

Statutes affected:
21: 44-30-12