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 authorities or commissions, and nonqualified withdrawals from a tuition savings program. 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 an account under the tuition savings program. The bill aims to clarify and modify the calculation of Rhode Island income for resident individuals for tax purposes.

This bill proposes modifications to the personal income tax law in Rhode Island. It would gradually phase in modifications to federal adjusted gross income over a four-year period for social security income, starting on or after January 1, 2024. The modifications would range from 25% to 100% of social security income. The bill would take effect upon passage.

Statutes affected:
529: 44-30-12