This bill proposes changes to the Rhode Island tax code, including adjustments to the definition of "Rhode Island taxable income," changes to tax rates for residents and nonresidents, adjustments for inflation, changes to the maximum capital gains rates, and changes to itemized deductions. It also includes provisions for an alternative minimum tax and changes to the treatment of unearned income of minor children. The bill also includes provisions for rounding tax increases, allowing for credits against Rhode Island tax for certain federal tax credits, establishing a Rhode Island earned-income credit for taxpayers eligible for the federal earned-income credit, and includes provisions for recalculation and revisions to the tax code.

One specific change proposed by this bill is an increase in the state earned-income credit for taxpayers entitled to a federal earned-income credit. The bill would increase the state earned-income credit from 15% to 16% of the federal earned-income credit. This change would take effect for tax years beginning on or after January 1, 2024.

Statutes affected:
80: 44-30-2.6