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 bill includes a list of modifications that increase federal adjusted gross income, such as interest income on obligations of any state other than Rhode Island, interest or dividend income on certain obligations or securities, and nonqualified withdrawals from a tuition savings program account. It also includes modifications that reduce federal adjusted gross income, such as interest income on obligations of the United States, certain withdrawals or distributions from a tuition savings program, and contributions made to a tuition savings program account. The bill aims to clarify and update the provisions related to Rhode Island income for resident individuals and the modifications that apply to their federal adjusted gross income.

This bill also includes several modifications to the current law related to personal income tax. One modification is the adjustment of the dollar amount for Social Security benefits included in federal adjusted gross income for individuals who have attained the age for calculating full or unreduced Social Security retirement benefits. The dollar amount would be increased annually based on the cost-of-living adjustment. Another modification is the allowance of a modification for taxable pension and/or annuity income for individuals who have attained the age for calculating full or unreduced Social Security retirement benefits. The dollar amount for this modification would also be adjusted annually based on the cost-of-living adjustment. Additionally, the bill includes a modification for Rhode Island investment in opportunity zones and a modification for military service pensions. The bill also allows a modification for charitable contributions made to any federally-recognized organization pursuant to IRC 501(c)(3).

Statutes affected:
5807: 44-30-12