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 certain modifications. The modifications include increasing federal adjusted gross income by interest income on obligations of any state other than Rhode Island, interest or dividend income on obligations or securities of the United States, and nonqualified withdrawals from an account in the tuition savings program. The modifications also include reducing federal adjusted gross income by interest income on obligations of the United States and its possessions, and contributions made to an account under the tuition savings program. The bill aims to provide clarity and specificity regarding the Rhode Island income of a resident individual and the modifications to federal adjusted gross income.

This bill also adds a new exemption for a foreign service officer's pension. Starting from January 1, 2024, a taxpayer who is a foreign service officer can subtract their pension benefits from their federal adjusted gross income when calculating their state tax liability. A foreign service officer is defined as someone appointed under the provisions of 22 C.F.R. § 11 and appointed under the Foreign Service Act of 1980. This amendment would take effect upon passage of the bill.

Statutes affected:
253: 44-30-12