This bill amends Section 44-30-12 of the General Laws in Chapter 44-30 entitled "Personal Income Tax." The amendment adds new language that defines the Rhode Island income of a resident individual as their adjusted gross income for federal income tax purposes, with specified modifications. The bill also adds several modifications that increase federal adjusted gross income, including interest income on obligations of any state other than Rhode Island, 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 from a tuition savings program account.

Additionally, the bill adds a modification that allows for the subtraction of certain amounts from federal adjusted gross income, including interest income on obligations of the United States, a modification described in another section of the law, and the amount of any withdrawal or distribution from a tuition savings program that is included in federal adjusted gross income. The bill also adds a modification for organ transplantation, allowing individuals to subtract up to $10,000 from federal adjusted gross income if they donate one or more of their human organs for transplantation.

This bill aims to modify the personal income tax laws in Rhode Island. It would increase the federal adjusted gross income threshold for modification of taxable social security income. The bill also amends references to the federal adjusted gross income as it pertains to modification of taxable retirement income from certain pension plans or annuities. The changes would take effect upon passage of the bill.

Statutes affected:
246: 44-30-12