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| 4 | 4 | | |
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| 5 | 5 | | 2025 -- H 6008 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC001550 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S T A T E O F R H O D E I S L A N D |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2025 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO TAXATION -- BUSINESS CORPORATION TAX |
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| 16 | 16 | | Introduced By: Representatives Santucci, Quattrocchi, Roberts, Nardone, Fascia, Place, |
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| 17 | 17 | | Chippendale, Newberry, and Paplauskas |
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| 18 | 18 | | Date Introduced: February 28, 2025 |
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| 19 | 19 | | Referred To: House Finance |
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| 20 | 20 | | |
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| 21 | 21 | | |
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| 22 | 22 | | It is enacted by the General Assembly as follows: |
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| 23 | 23 | | SECTION 1. Section 44-11-2 of the General Laws in Chapter 44-11 entitled "Business 1 |
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| 24 | 24 | | Corporation Tax" is hereby amended to read as follows: 2 |
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| 25 | 25 | | 44-11-2. Imposition of tax. 3 |
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| 26 | 26 | | (a) Each corporation shall annually pay to the state a tax equal to nine percent (9%) of net 4 |
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| 27 | 27 | | income, as defined in § 44-11-11, qualified in § 44-11-12, and apportioned to this state as provided 5 |
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| 28 | 28 | | in §§ 44-11-13 — 44-11-15, for the taxable year. For tax years beginning on or after January 1, 6 |
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| 29 | 29 | | 2015, each corporation shall annually pay to the state a tax equal to seven percent (7.0%) of net 7 |
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| 30 | 30 | | income, as defined in § 44-11-13 — 44-11-15, for the taxable year. 8 |
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| 31 | 31 | | (b) A corporation shall pay the amount of any tax as computed in accordance with 9 |
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| 32 | 32 | | subsection (a) after deducting from “net income,” as used in this section, fifty percent (50%) of the 10 |
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| 33 | 33 | | excess of capital gains over capital losses realized during the taxable year, if for the taxable year: 11 |
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| 34 | 34 | | (1) The corporation is engaged in buying, selling, dealing in, or holding securities on its 12 |
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| 35 | 35 | | own behalf and not as a broker, underwriter, or distributor; 13 |
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| 36 | 36 | | (2) Its gross receipts derived from these activities during the taxable year amounted to at 14 |
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| 37 | 37 | | least ninety percent (90%) of its total gross receipts derived from all of its activities during the year. 15 |
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| 38 | 38 | | “Gross receipts” means all receipts, whether in the form of money, credits, or other valuable 16 |
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| 39 | 39 | | consideration, received during the taxable year in connection with the conduct of the taxpayer’s 17 |
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| 40 | 40 | | activities. 18 |
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| 41 | 41 | | (c) A corporation shall not pay the amount of the tax computed on the basis of its net 19 |
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| 42 | 42 | | |
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| 43 | 43 | | |
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| 44 | 44 | | LC001550 - Page 2 of 18 |
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| 45 | 45 | | income under subsection (a), but shall annually pay to the state a tax equal to ten cents ($.10) for 1 |
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| 46 | 46 | | each one hundred dollars ($100) of gross income for the taxable year or a tax of one hundred dollars 2 |
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| 47 | 47 | | ($100), whichever tax shall be the greater, if for the taxable year the corporation is either a “personal 3 |
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| 48 | 48 | | holding company” registered under the federal Investment Company Act of 1940, 15 U.S.C. § 80a-4 |
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| 49 | 49 | | 1 et seq., “regulated investment company,” or a “real estate investment trust” as defined in the 5 |
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| 50 | 50 | | federal income tax law applicable to the taxable year. “Gross income” means gross income as 6 |
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| 51 | 51 | | defined in the federal income tax law applicable to the taxable year, plus: 7 |
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| 52 | 52 | | (1) Any interest not included in the federal gross income; minus 8 |
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| 53 | 53 | | (2) Interest on obligations of the United States or its possessions, and other interest exempt 9 |
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| 54 | 54 | | from taxation by this state; and minus 10 |
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| 55 | 55 | | (3) Fifty percent (50%) of the excess of capital gains over capital losses realized during the 11 |
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| 56 | 56 | | taxable year. 12 |
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| 57 | 57 | | (d)(1) A small business corporation having an election in effect under subchapter S, 26 13 |
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| 58 | 58 | | U.S.C. § 1361 et seq., shall not be subject to the Rhode Island income tax on corporations, except 14 |
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| 59 | 59 | | that the corporation shall be subject to the provisions of subsection (a), to the extent of the income 15 |
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| 60 | 60 | | that is subjected to federal tax under subchapter S. Effective for tax years beginning on or after 16 |
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| 61 | 61 | | January 1, 2015, a small business corporation having an election in effect under subchapter S, 26 17 |
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| 62 | 62 | | U.S.C. § 1361 et seq., shall be subject to the minimum tax under § 44-11-2(e). 18 |
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| 63 | 63 | | (2) The shareholders of the corporation who are residents of Rhode Island shall include in 19 |
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| 64 | 64 | | their income their proportionate share of the corporation’s federal taxable income. 20 |
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| 65 | 65 | | (3) [Deleted by P.L. 2004, ch. 595, art. 29, § 1.] 21 |
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| 66 | 66 | | (4) [Deleted by P.L. 2004, ch. 595, art. 29, § 1.] 22 |
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| 67 | 67 | | (e) Minimum tax. The tax imposed upon any corporation under this section, including a 23 |
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| 68 | 68 | | small business corporation having an election in effect under subchapter S, 26 U.S.C. § 1361 et 24 |
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| 69 | 69 | | seq., shall not be less than four hundred fifty dollars ($450). For tax years beginning on or after 25 |
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| 70 | 70 | | January 1, 2017, the tax imposed shall not be less than four hundred dollars ($400). 26 |
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| 71 | 71 | | (f) Credit against tax for ABLE contributions. An employer shall be allowed a credit 27 |
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| 72 | 72 | | against income tax for contributions to an eligible employee’s ABLE account, established pursuant 28 |
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| 73 | 73 | | to §42-7.2-20.3, for a maximum credit of two thousand dollars ($2,000) per employee, per year. 29 |
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| 74 | 74 | | SECTION 2. Section 44-30-2.6 of the General Laws in Chapter 44-30 entitled "Personal 30 |
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| 75 | 75 | | Income Tax" is hereby amended to read as follows: 31 |
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| 76 | 76 | | 44-30-2.6. Rhode Island taxable income — Rate of tax. 32 |
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| 77 | 77 | | (a) “Rhode Island taxable income” means federal taxable income as determined under the 33 |
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| 78 | 78 | | Internal Revenue Code, 26 U.S.C. § 1 et seq., not including the increase in the basic, standard-34 |
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| 79 | 79 | | |
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| 80 | 80 | | |
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| 81 | 81 | | LC001550 - Page 3 of 18 |
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| 82 | 82 | | deduction amount for married couples filing joint returns as provided in the Jobs and Growth Tax 1 |
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| 83 | 83 | | Relief Reconciliation Act of 2003 and the Economic Growth and Tax Relief Reconciliation Act of 2 |
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| 84 | 84 | | 2001 (EGTRRA), and as modified by the modifications in § 44-30-12. 3 |
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| 85 | 85 | | (b) Notwithstanding the provisions of §§ 44-30-1 and 44-30-2, for tax years beginning on 4 |
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| 86 | 86 | | or after January 1, 2001, a Rhode Island personal income tax is imposed upon the Rhode Island 5 |
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| 87 | 87 | | taxable income of residents and nonresidents, including estates and trusts, at the rate of twenty-five 6 |
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| 88 | 88 | | and one-half percent (25.5%) for tax year 2001, and twenty-five percent (25%) for tax year 2002 7 |
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| 89 | 89 | | and thereafter of the federal income tax rates, including capital gains rates and any other special 8 |
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| 90 | 90 | | rates for other types of income, except as provided in § 44-30-2.7, which were in effect immediately 9 |
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| 91 | 91 | | prior to enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA); 10 |
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| 92 | 92 | | provided, rate schedules shall be adjusted for inflation by the tax administrator beginning in taxable 11 |
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| 93 | 93 | | year 2002 and thereafter in the manner prescribed for adjustment by the commissioner of Internal 12 |
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| 94 | 94 | | Revenue in 26 U.S.C. § 1(f). However, for tax years beginning on or after January 1, 2006, a 13 |
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| 95 | 95 | | taxpayer may elect to use the alternative flat tax rate provided in § 44-30-2.10 to calculate his or 14 |
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| 96 | 96 | | her personal income tax liability. 15 |
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| 97 | 97 | | (c) For tax years beginning on or after January 1, 2001, if a taxpayer has an alternative 16 |
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| 98 | 98 | | minimum tax for federal tax purposes, the taxpayer shall determine if he or she has a Rhode Island 17 |
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| 99 | 99 | | alternative minimum tax. The Rhode Island alternative minimum tax shall be computed by 18 |
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| 100 | 100 | | multiplying the federal tentative minimum tax without allowing for the increased exemptions under 19 |
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| 101 | 101 | | the Jobs and Growth Tax Relief Reconciliation Act of 2003 (as redetermined on federal form 6251 20 |
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| 102 | 102 | | Alternative Minimum Tax-Individuals) by twenty-five and one-half percent (25.5%) for tax year 21 |
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| 103 | 103 | | 2001, and twenty-five percent (25%) for tax year 2002 and thereafter, and comparing the product 22 |
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| 104 | 104 | | to the Rhode Island tax as computed otherwise under this section. The excess shall be the taxpayer’s 23 |
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| 105 | 105 | | Rhode Island alternative minimum tax. 24 |
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| 106 | 106 | | (1) For tax years beginning on or after January 1, 2005, and thereafter, the exemption 25 |
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| 107 | 107 | | amount for alternative minimum tax, for Rhode Island purposes, shall be adjusted for inflation by 26 |
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| 108 | 108 | | the tax administrator in the manner prescribed for adjustment by the commissioner of Internal 27 |
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| 109 | 109 | | Revenue in 26 U.S.C. § 1(f). 28 |
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| 110 | 110 | | (2) For the period January 1, 2007, through December 31, 2007, and thereafter, Rhode 29 |
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| 111 | 111 | | Island taxable income shall be determined by deducting from federal adjusted gross income as 30 |
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| 112 | 112 | | defined in 26 U.S.C. § 62 as modified by the modifications in § 44-30-12 the Rhode Island 31 |
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| 113 | 113 | | itemized-deduction amount and the Rhode Island exemption amount as determined in this section. 32 |
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| 114 | 114 | | (A) Tax imposed. 33 |
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| 115 | 115 | | (1) There is hereby imposed on the taxable income of married individuals filing joint 34 |
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| 116 | 116 | | |
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| 117 | 117 | | |
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| 118 | 118 | | LC001550 - Page 4 of 18 |
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| 119 | 119 | | returns and surviving spouses a tax determined in accordance with the following table: 1 |
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| 120 | 120 | | If taxable income is: The tax is: 2 |
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| 121 | 121 | | Not over $53,150 3.75% of taxable income 3 |
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| 122 | 122 | | Over $53,150 but not over $128,500 $1,993.13 plus 7.00% of the excess over $53,150 4 |
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| 123 | 123 | | Over $128,500 but not over $195,850 $7,267.63 plus 7.75% of the excess over $128,500 5 |
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| 124 | 124 | | Over $195,850 but not over $349,700 $12,487.25 plus 9.00% of the excess over $195,850 6 |
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| 125 | 125 | | Over $349,700 $26,333.75 plus 9.90% of the excess over $349,700 7 |
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| 126 | 126 | | (2) There is hereby imposed on the taxable income of every head of household a tax 8 |
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| 127 | 127 | | determined in accordance with the following table: 9 |
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| 128 | 128 | | If taxable income is: The tax is: 10 |
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| 129 | 129 | | Not over $42,650 3.75% of taxable income 11 |
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| 130 | 130 | | Over $42,650 but not over $110,100 $1,599.38 plus 7.00% of the excess over $42,650 12 |
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| 131 | 131 | | Over $110,100 but not over $178,350 $6,320.88 plus 7.75% of the excess over $110,100 13 |
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| 132 | 132 | | Over $178,350 but not over $349,700 $11,610.25 plus 9.00% of the excess over $178,350 14 |
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| 133 | 133 | | Over $349,700 $27,031.75 plus 9.90% of the excess over $349,700 15 |
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| 134 | 134 | | (3) There is hereby imposed on the taxable income of unmarried individuals (other than 16 |
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| 135 | 135 | | surviving spouses and heads of households) a tax determined in accordance with the following 17 |
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| 136 | 136 | | table: 18 |
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| 137 | 137 | | If taxable income is: The tax is: 19 |
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| 138 | 138 | | Not over $31,850 3.75% of taxable income 20 |
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| 139 | 139 | | Over $31,850 but not over $77,100 $1,194.38 plus 7.00% of the excess over $31,850 21 |
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| 140 | 140 | | Over $77,100 but not over $160,850 $4,361.88 plus 7.75% of the excess over $77,100 22 |
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| 141 | 141 | | Over $160,850 but not over $349,700 $10,852.50 plus 9.00% of the excess over $160,850 23 |
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| 142 | 142 | | Over $349,700 $27,849.00 plus 9.90% of the excess over $349,700 24 |
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| 143 | 143 | | (4) There is hereby imposed on the taxable income of married individuals filing separate 25 |
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| 144 | 144 | | returns and bankruptcy estates a tax determined in accordance with the following table: 26 |
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| 145 | 145 | | If taxable income is: The tax is: 27 |
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| 146 | 146 | | Not over $26,575 3.75% of taxable income 28 |
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| 147 | 147 | | Over $26,575 but not over $64,250 $996.56 plus 7.00% of the excess over $26,575 29 |
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| 148 | 148 | | Over $64,250 but not over $97,925 $3,633.81 plus 7.75% of the excess over $64,250 30 |
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| 149 | 149 | | Over $97,925 but not over $174,850 $6,243.63 plus 9.00% of the excess over $97,925 31 |
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| 150 | 150 | | Over $174,850 $13,166.88 plus 9.90% of the excess over $174,850 32 |
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| 151 | 151 | | (5) There is hereby imposed a taxable income of an estate or trust a tax determined in 33 |
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| 152 | 152 | | accordance with the following table: 34 |
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| 153 | 153 | | |
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| 154 | 154 | | |
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| 155 | 155 | | LC001550 - Page 5 of 18 |
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| 156 | 156 | | If taxable income is: The tax is: 1 |
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| 157 | 157 | | Not over $2,150 3.75% of taxable income 2 |
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| 158 | 158 | | Over $2,150 but not over $5,000 $80.63 plus 7.00% of the excess over $2,150 3 |
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| 159 | 159 | | Over $5,000 but not over $7,650 $280.13 plus 7.75% of the excess over $5,000 4 |
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| 160 | 160 | | Over $7,650 but not over $10,450 $485.50 plus 9.00% of the excess over $7,650 5 |
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| 161 | 161 | | Over $10,450 $737.50 plus 9.90% of the excess over $10,450 6 |
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| 162 | 162 | | (6) Adjustments for inflation. 7 |
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| 163 | 163 | | The dollars amount contained in paragraph (A) shall be increased by an amount equal to: 8 |
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| 164 | 164 | | (a) Such dollar amount contained in paragraph (A) in the year 1993, multiplied by; 9 |
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| 165 | 165 | | (b) The cost-of-living adjustment determined under section (J) with a base year of 1993; 10 |
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| 166 | 166 | | (c) The cost-of-living adjustment referred to in subparagraphs (a) and (b) used in making 11 |
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| 167 | 167 | | adjustments to the nine percent (9%) and nine and nine tenths percent (9.9%) dollar amounts shall 12 |
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| 168 | 168 | | be determined under section (J) by substituting “1994” for “1993.” 13 |
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| 169 | 169 | | (B) Maximum capital gains rates. 14 |
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| 170 | 170 | | (1) In general. 15 |
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| 171 | 171 | | If a taxpayer has a net capital gain for tax years ending prior to January 1, 2010, the tax 16 |
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| 172 | 172 | | imposed by this section for such taxable year shall not exceed the sum of: 17 |
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| 173 | 173 | | (a) 2.5% of the net capital gain as reported for federal income tax purposes under section 18 |
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| 174 | 174 | | 26 U.S.C. § 1(h)(1)(a) and 26 U.S.C. § 1(h)(1)(b). 19 |
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| 175 | 175 | | (b) 5% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. 20 |
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| 176 | 176 | | § 1(h)(1)(c). 21 |
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| 177 | 177 | | (c) 6.25% of the net capital gain as reported for federal income tax purposes under 26 22 |
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| 178 | 178 | | U.S.C. § 1(h)(1)(d). 23 |
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| 179 | 179 | | (d) 7% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. 24 |
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| 180 | 180 | | § 1(h)(1)(e). 25 |
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| 181 | 181 | | (2) For tax years beginning on or after January 1, 2010, the tax imposed on net capital gain 26 |
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| 182 | 182 | | shall be determined under subdivision 44-30-2.6(c)(2)(A). 27 |
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| 183 | 183 | | (C) Itemized deductions. 28 |
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| 184 | 184 | | (1) In general. 29 |
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| 185 | 185 | | For the purposes of section (2), “itemized deductions” means the amount of federal 30 |
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| 186 | 186 | | itemized deductions as modified by the modifications in § 44-30-12. 31 |
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| 187 | 187 | | (2) Individuals who do not itemize their deductions. 32 |
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| 188 | 188 | | In the case of an individual who does not elect to itemize his deductions for the taxable 33 |
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| 189 | 189 | | year, they may elect to take a standard deduction. 34 |
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| 190 | 190 | | |
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| 191 | 191 | | |
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| 192 | 192 | | LC001550 - Page 6 of 18 |
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| 193 | 193 | | (3) Basic standard deduction. 1 |
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| 194 | 194 | | The Rhode Island standard deduction shall be allowed in accordance with the following 2 |
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| 195 | 195 | | table: 3 |
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| 196 | 196 | | Filing status Amount 4 |
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| 197 | 197 | | Single $5,350 5 |
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| 198 | 198 | | Married filing jointly or qualifying widow(er) $8,900 6 |
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| 199 | 199 | | Married filing separately $4,450 7 |
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| 200 | 200 | | Head of Household $7,850 8 |
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| 201 | 201 | | (4) Additional standard deduction for the aged and blind. 9 |
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| 202 | 202 | | An additional standard deduction shall be allowed for individuals age sixty-five (65) or 10 |
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| 203 | 203 | | older or blind in the amount of $1,300 for individuals who are not married and $1,050 for 11 |
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| 204 | 204 | | individuals who are married. 12 |
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| 205 | 205 | | (5) Limitation on basic standard deduction in the case of certain dependents. 13 |
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| 206 | 206 | | In the case of an individual to whom a deduction under section (E) is allowable to another 14 |
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| 207 | 207 | | taxpayer, the basic standard deduction applicable to such individual shall not exceed the greater of: 15 |
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| 208 | 208 | | (a) $850; 16 |
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| 209 | 209 | | (b) The sum of $300 and such individual’s earned income; 17 |
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| 210 | 210 | | (6) Certain individuals not eligible for standard deduction. 18 |
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| 211 | 211 | | In the case of: 19 |
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| 212 | 212 | | (a) A married individual filing a separate return where either spouse itemizes deductions; 20 |
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| 213 | 213 | | (b) Nonresident alien individual; 21 |
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| 214 | 214 | | (c) An estate or trust; 22 |
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| 215 | 215 | | The standard deduction shall be zero. 23 |
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| 216 | 216 | | (7) Adjustments for inflation. 24 |
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| 217 | 217 | | Each dollar amount contained in paragraphs (3), (4) and (5) shall be increased by an amount 25 |
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| 218 | 218 | | equal to: 26 |
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| 219 | 219 | | (a) Such dollar amount contained in paragraphs (3), (4) and (5) in the year 1988, multiplied 27 |
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| 220 | 220 | | by 28 |
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| 221 | 221 | | (b) The cost-of-living adjustment determined under section (J) with a base year of 1988. 29 |
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| 222 | 222 | | (D) Overall limitation on itemized deductions. 30 |
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| 223 | 223 | | (1) General rule. 31 |
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| 224 | 224 | | In the case of an individual whose adjusted gross income as modified by § 44-30-12 32 |
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| 225 | 225 | | exceeds the applicable amount, the amount of the itemized deductions otherwise allowable for the 33 |
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| 226 | 226 | | taxable year shall be reduced by the lesser of: 34 |
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| 227 | 227 | | |
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| 228 | 228 | | |
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| 229 | 229 | | LC001550 - Page 7 of 18 |
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| 230 | 230 | | (a) Three percent (3%) of the excess of adjusted gross income as modified by § 44-30-12 1 |
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| 231 | 231 | | over the applicable amount; or 2 |
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| 232 | 232 | | (b) Eighty percent (80%) of the amount of the itemized deductions otherwise allowable for 3 |
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| 233 | 233 | | such taxable year. 4 |
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| 234 | 234 | | (2) Applicable amount. 5 |
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| 235 | 235 | | (a) In general. 6 |
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| 236 | 236 | | For purposes of this section, the term “applicable amount” means $156,400 ($78,200 in the 7 |
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| 237 | 237 | | case of a separate return by a married individual) 8 |
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| 238 | 238 | | (b) Adjustments for inflation. 9 |
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| 239 | 239 | | Each dollar amount contained in paragraph (a) shall be increased by an amount equal to: 10 |
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| 240 | 240 | | (i) Such dollar amount contained in paragraph (a) in the year 1991, multiplied by 11 |
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| 241 | 241 | | (ii) The cost-of-living adjustment determined under section (J) with a base year of 1991. 12 |
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| 242 | 242 | | (3) Phase-out of Limitation. 13 |
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| 243 | 243 | | (a) In general. 14 |
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| 244 | 244 | | In the case of taxable year beginning after December 31, 2005, and before January 1, 2010, 15 |
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| 245 | 245 | | the reduction under section (1) shall be equal to the applicable fraction of the amount which would 16 |
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| 246 | 246 | | be the amount of such reduction. 17 |
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| 247 | 247 | | (b) Applicable fraction. 18 |
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| 248 | 248 | | For purposes of paragraph (a), the applicable fraction shall be determined in accordance 19 |
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| 249 | 249 | | with the following table: 20 |
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| 250 | 250 | | For taxable years beginning in calendar year The applicable fraction is 21 |
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| 251 | 251 | | 2006 and 2007 ⅔ 22 |
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| 252 | 252 | | 2008 and 2009 ⅓ 23 |
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| 253 | 253 | | (E) Exemption amount. 24 |
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| 254 | 254 | | (1) In general. 25 |
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| 255 | 255 | | Except as otherwise provided in this subsection, the term “exemption amount” means 26 |
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| 256 | 256 | | $3,400. 27 |
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| 257 | 257 | | (2) Exemption amount disallowed in case of certain dependents. 28 |
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| 258 | 258 | | In the case of an individual with respect to whom a deduction under this section is allowable 29 |
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| 259 | 259 | | to another taxpayer for the same taxable year, the exemption amount applicable to such individual 30 |
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| 260 | 260 | | for such individual's taxable year shall be zero. 31 |
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| 261 | 261 | | (3) Adjustments for inflation. 32 |
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| 262 | 262 | | The dollar amount contained in paragraph (1) shall be increased by an amount equal to: 33 |
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| 263 | 263 | | (a) Such dollar amount contained in paragraph (1) in the year 1989, multiplied by 34 |
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| 264 | 264 | | |
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| 265 | 265 | | |
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| 266 | 266 | | LC001550 - Page 8 of 18 |
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| 267 | 267 | | (b) The cost-of-living adjustment determined under section (J) with a base year of 1989. 1 |
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| 268 | 268 | | (4) Limitation. 2 |
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| 269 | 269 | | (a) In general. 3 |
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| 270 | 270 | | In the case of any taxpayer whose adjusted gross income as modified for the taxable year 4 |
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| 271 | 271 | | exceeds the threshold amount shall be reduced by the applicable percentage. 5 |
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| 272 | 272 | | (b) Applicable percentage. 6 |
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| 273 | 273 | | In the case of any taxpayer whose adjusted gross income for the taxable year exceeds the 7 |
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| 274 | 274 | | threshold amount, the exemption amount shall be reduced by two (2) percentage points for each 8 |
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| 275 | 275 | | $2,500 (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year 9 |
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| 276 | 276 | | exceeds the threshold amount. In the case of a married individual filing a separate return, the 10 |
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| 277 | 277 | | preceding sentence shall be applied by substituting “$1,250” for “$2,500.” In no event shall the 11 |
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| 278 | 278 | | applicable percentage exceed one hundred percent (100%). 12 |
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| 279 | 279 | | (c) Threshold Amount. 13 |
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| 280 | 280 | | For the purposes of this paragraph, the term ‘‘threshold amount’’ shall be determined with 14 |
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| 281 | 281 | | the following table: 15 |
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| 282 | 282 | | Filing status Amount 16 |
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| 283 | 283 | | Single $156,400 17 |
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| 284 | 284 | | Married filing jointly of qualifying widow(er) $234,600 18 |
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| 285 | 285 | | Married filing separately $117,300 19 |
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| 286 | 286 | | Head of Household $195,500 20 |
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| 287 | 287 | | (d) Adjustments for inflation. 21 |
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| 288 | 288 | | Each dollar amount contained in paragraph (b) shall be increased by an amount equal to: 22 |
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| 289 | 289 | | (i) Such dollar amount contained in paragraph (b) in the year 1991, multiplied by 23 |
|---|
| 290 | 290 | | (ii) The cost-of-living adjustment determined under section (J) with a base year of 1991. 24 |
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| 291 | 291 | | (5) Phase-out of limitation. 25 |
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| 292 | 292 | | (a) In general. 26 |
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| 293 | 293 | | In the case of taxable years beginning after December 31, 2005, and before January 1, 27 |
|---|
| 294 | 294 | | 2010, the reduction under section 4 shall be equal to the applicable fraction of the amount which 28 |
|---|
| 295 | 295 | | would be the amount of such reduction. 29 |
|---|
| 296 | 296 | | (b) Applicable fraction. 30 |
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| 297 | 297 | | For the purposes of paragraph (a), the applicable fraction shall be determined in accordance 31 |
|---|
| 298 | 298 | | with the following table: 32 |
|---|
| 299 | 299 | | For taxable years beginning in calendar year The applicable fraction is 33 |
|---|
| 300 | 300 | | 2006 and 2007 ⅔ 34 |
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| 301 | 301 | | |
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| 302 | 302 | | |
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| 303 | 303 | | LC001550 - Page 9 of 18 |
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| 304 | 304 | | 2008 and 2009 ⅓ 1 |
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| 305 | 305 | | (F) Alternative minimum tax. 2 |
|---|
| 306 | 306 | | (1) General rule. There is hereby imposed (in addition to any other tax imposed by this 3 |
|---|
| 307 | 307 | | subtitle) a tax equal to the excess (if any) of: 4 |
|---|
| 308 | 308 | | (a) The tentative minimum tax for the taxable year, over 5 |
|---|
| 309 | 309 | | (b) The regular tax for the taxable year. 6 |
|---|
| 310 | 310 | | (2) The tentative minimum tax for the taxable year is the sum of: 7 |
|---|
| 311 | 311 | | (a) 6.5 percent of so much of the taxable excess as does not exceed $175,000, plus 8 |
|---|
| 312 | 312 | | (b) 7.0 percent of so much of the taxable excess above $175,000. 9 |
|---|
| 313 | 313 | | (3) The amount determined under the preceding sentence shall be reduced by the alternative 10 |
|---|
| 314 | 314 | | minimum tax foreign tax credit for the taxable year. 11 |
|---|
| 315 | 315 | | (4) Taxable excess. For the purposes of this subsection the term “taxable excess” means so 12 |
|---|
| 316 | 316 | | much of the federal alternative minimum taxable income as modified by the modifications in § 44-13 |
|---|
| 317 | 317 | | 30-12 as exceeds the exemption amount. 14 |
|---|
| 318 | 318 | | (5) In the case of a married individual filing a separate return, subparagraph (2) shall be 15 |
|---|
| 319 | 319 | | applied by substituting “$87,500” for $175,000 each place it appears. 16 |
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| 320 | 320 | | (6) Exemption amount. 17 |
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| 321 | 321 | | For purposes of this section "exemption amount" means: 18 |
|---|
| 322 | 322 | | Filing status Amount 19 |
|---|
| 323 | 323 | | Single $39,150 20 |
|---|
| 324 | 324 | | Married filing jointly or qualifying widow(er) $53,700 21 |
|---|
| 325 | 325 | | Married filing separately $26,850 22 |
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| 326 | 326 | | Head of Household $39,150 23 |
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| 327 | 327 | | Estate or trust $24,650 24 |
|---|
| 328 | 328 | | (7) Treatment of unearned income of minor children 25 |
|---|
| 329 | 329 | | (a) In general. 26 |
|---|
| 330 | 330 | | In the case of a minor child, the exemption amount for purposes of section (6) shall not 27 |
|---|
| 331 | 331 | | exceed the sum of: 28 |
|---|
| 332 | 332 | | (i) Such child's earned income, plus 29 |
|---|
| 333 | 333 | | (ii) $6,000. 30 |
|---|
| 334 | 334 | | (8) Adjustments for inflation. 31 |
|---|
| 335 | 335 | | The dollar amount contained in paragraphs (6) and (7) shall be increased by an amount 32 |
|---|
| 336 | 336 | | equal to: 33 |
|---|
| 337 | 337 | | (a) Such dollar amount contained in paragraphs (6) and (7) in the year 2004, multiplied by 34 |
|---|
| 338 | 338 | | |
|---|
| 339 | 339 | | |
|---|
| 340 | 340 | | LC001550 - Page 10 of 18 |
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| 341 | 341 | | (b) The cost-of-living adjustment determined under section (J) with a base year of 2004. 1 |
|---|
| 342 | 342 | | (9) Phase-out. 2 |
|---|
| 343 | 343 | | (a) In general. 3 |
|---|
| 344 | 344 | | The exemption amount of any taxpayer shall be reduced (but not below zero) by an amount 4 |
|---|
| 345 | 345 | | equal to twenty-five percent (25%) of the amount by which alternative minimum taxable income 5 |
|---|
| 346 | 346 | | of the taxpayer exceeds the threshold amount. 6 |
|---|
| 347 | 347 | | (b) Threshold amount. 7 |
|---|
| 348 | 348 | | For purposes of this paragraph, the term “threshold amount” shall be determined with the 8 |
|---|
| 349 | 349 | | following table: 9 |
|---|
| 350 | 350 | | Filing status Amount 10 |
|---|
| 351 | 351 | | Single $123,250 11 |
|---|
| 352 | 352 | | Married filing jointly or qualifying widow(er) $164,350 12 |
|---|
| 353 | 353 | | Married filing separately $82,175 13 |
|---|
| 354 | 354 | | Head of Household $123,250 14 |
|---|
| 355 | 355 | | Estate or Trust $82,150 15 |
|---|
| 356 | 356 | | (c) Adjustments for inflation 16 |
|---|
| 357 | 357 | | Each dollar amount contained in paragraph (9) shall be increased by an amount equal to: 17 |
|---|
| 358 | 358 | | (i) Such dollar amount contained in paragraph (9) in the year 2004, multiplied by 18 |
|---|
| 359 | 359 | | (ii) The cost-of-living adjustment determined under section (J) with a base year of 2004. 19 |
|---|
| 360 | 360 | | (G) Other Rhode Island taxes. 20 |
|---|
| 361 | 361 | | (1) General rule. There is hereby imposed (in addition to any other tax imposed by this 21 |
|---|
| 362 | 362 | | subtitle) a tax equal to twenty-five percent (25%) of: 22 |
|---|
| 363 | 363 | | (a) The Federal income tax on lump-sum distributions. 23 |
|---|
| 364 | 364 | | (b) The Federal income tax on parents' election to report child's interest and dividends. 24 |
|---|
| 365 | 365 | | (c) The recapture of Federal tax credits that were previously claimed on Rhode Island 25 |
|---|
| 366 | 366 | | return. 26 |
|---|
| 367 | 367 | | (H) Tax for children under 18 with investment income. 27 |
|---|
| 368 | 368 | | (1) General rule. There is hereby imposed a tax equal to twenty-five percent (25%) of: 28 |
|---|
| 369 | 369 | | (a) The Federal tax for children under the age of 18 with investment income. 29 |
|---|
| 370 | 370 | | (I) Averaging of farm income. 30 |
|---|
| 371 | 371 | | (1) General rule. At the election of an individual engaged in a farming business or fishing 31 |
|---|
| 372 | 372 | | business, the tax imposed in section 2 shall be equal to twenty-five percent (25%) of: 32 |
|---|
| 373 | 373 | | (a) The Federal averaging of farm income as determined in IRC section 1301 [26 U.S.C. § 33 |
|---|
| 374 | 374 | | 1301]. 34 |
|---|
| 375 | 375 | | |
|---|
| 376 | 376 | | |
|---|
| 377 | 377 | | LC001550 - Page 11 of 18 |
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| 378 | 378 | | (J) Cost-of-living adjustment. 1 |
|---|
| 379 | 379 | | (1) In general. 2 |
|---|
| 380 | 380 | | The cost-of-living adjustment for any calendar year is the percentage (if any) by which: 3 |
|---|
| 381 | 381 | | (a) The CPI for the preceding calendar year exceeds 4 |
|---|
| 382 | 382 | | (b) The CPI for the base year. 5 |
|---|
| 383 | 383 | | (2) CPI for any calendar year. 6 |
|---|
| 384 | 384 | | For purposes of paragraph (1), the CPI for any calendar year is the average of the consumer 7 |
|---|
| 385 | 385 | | price index as of the close of the twelve (12) month period ending on August 31 of such calendar 8 |
|---|
| 386 | 386 | | year. 9 |
|---|
| 387 | 387 | | (3) Consumer price index. 10 |
|---|
| 388 | 388 | | For purposes of paragraph (2), the term “consumer price index” means the last consumer 11 |
|---|
| 389 | 389 | | price index for all urban consumers published by the department of labor. For purposes of the 12 |
|---|
| 390 | 390 | | preceding sentence, the revision of the consumer price index that is most consistent with the 13 |
|---|
| 391 | 391 | | consumer price index for calendar year 1986 shall be used. 14 |
|---|
| 392 | 392 | | (4) Rounding. 15 |
|---|
| 393 | 393 | | (a) In general. 16 |
|---|
| 394 | 394 | | If any increase determined under paragraph (1) is not a multiple of $50, such increase shall 17 |
|---|
| 395 | 395 | | be rounded to the next lowest multiple of $50. 18 |
|---|
| 396 | 396 | | (b) In the case of a married individual filing a separate return, subparagraph (a) shall be 19 |
|---|
| 397 | 397 | | applied by substituting “$25” for $50 each place it appears. 20 |
|---|
| 398 | 398 | | (K) Credits against tax. For tax years beginning on or after January 1, 2001, a taxpayer 21 |
|---|
| 399 | 399 | | entitled to any of the following federal credits enacted prior to January 1, 1996, shall be entitled to 22 |
|---|
| 400 | 400 | | a credit against the Rhode Island tax imposed under this section: 23 |
|---|
| 401 | 401 | | (1) [Deleted by P.L. 2007, ch. 73, art. 7, § 5.] 24 |
|---|
| 402 | 402 | | (2) Child and dependent care credit; 25 |
|---|
| 403 | 403 | | (3) General business credits; 26 |
|---|
| 404 | 404 | | (4) Credit for elderly or the disabled; 27 |
|---|
| 405 | 405 | | (5) Credit for prior year minimum tax; 28 |
|---|
| 406 | 406 | | (6) Mortgage interest credit; 29 |
|---|
| 407 | 407 | | (7) Empowerment zone employment credit; 30 |
|---|
| 408 | 408 | | (8) Qualified electric vehicle credit. 31 |
|---|
| 409 | 409 | | (L) Credit against tax for adoption. For tax years beginning on or after January 1, 2006, 32 |
|---|
| 410 | 410 | | a taxpayer entitled to the federal adoption credit shall be entitled to a credit against the Rhode Island 33 |
|---|
| 411 | 411 | | tax imposed under this section if the adopted child was under the care, custody, or supervision of 34 |
|---|
| 412 | 412 | | |
|---|
| 413 | 413 | | |
|---|
| 414 | 414 | | LC001550 - Page 12 of 18 |
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| 415 | 415 | | the Rhode Island department of children, youth and families prior to the adoption. 1 |
|---|
| 416 | 416 | | (M) The credit shall be twenty-five percent (25%) of the aforementioned federal credits 2 |
|---|
| 417 | 417 | | provided there shall be no deduction based on any federal credits enacted after January 1, 1996, 3 |
|---|
| 418 | 418 | | including the rate reduction credit provided by the federal Economic Growth and Tax 4 |
|---|
| 419 | 419 | | Reconciliation Act of 2001 (EGTRRA). In no event shall the tax imposed under this section be 5 |
|---|
| 420 | 420 | | reduced to less than zero. A taxpayer required to recapture any of the above credits for federal tax 6 |
|---|
| 421 | 421 | | purposes shall determine the Rhode Island amount to be recaptured in the same manner as 7 |
|---|
| 422 | 422 | | prescribed in this subsection. 8 |
|---|
| 423 | 423 | | (N) Rhode Island earned-income credit. 9 |
|---|
| 424 | 424 | | (1) In general. 10 |
|---|
| 425 | 425 | | For tax years beginning before January 1, 2015, a taxpayer entitled to a federal earned-11 |
|---|
| 426 | 426 | | income credit shall be allowed a Rhode Island earned-income credit equal to twenty-five percent 12 |
|---|
| 427 | 427 | | (25%) of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode 13 |
|---|
| 428 | 428 | | Island income tax. 14 |
|---|
| 429 | 429 | | For tax years beginning on or after January 1, 2015, and before January 1, 2016, a taxpayer 15 |
|---|
| 430 | 430 | | entitled to a federal earned-income credit shall be allowed a Rhode Island earned-income credit 16 |
|---|
| 431 | 431 | | equal to ten percent (10%) of the federal earned-income credit. Such credit shall not exceed the 17 |
|---|
| 432 | 432 | | amount of the Rhode Island income tax. 18 |
|---|
| 433 | 433 | | For tax years beginning on or after January 1, 2016, a taxpayer entitled to a federal earned-19 |
|---|
| 434 | 434 | | income credit shall be allowed a Rhode Island earned-income credit equal to twelve and one-half 20 |
|---|
| 435 | 435 | | percent (12.5%) of the federal earned-income credit. Such credit shall not exceed the amount of the 21 |
|---|
| 436 | 436 | | Rhode Island income tax. 22 |
|---|
| 437 | 437 | | For tax years beginning on or after January 1, 2017, a taxpayer entitled to a federal earned-23 |
|---|
| 438 | 438 | | income credit shall be allowed a Rhode Island earned-income credit equal to fifteen percent (15%) 24 |
|---|
| 439 | 439 | | of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island 25 |
|---|
| 440 | 440 | | income tax. 26 |
|---|
| 441 | 441 | | For tax years beginning on or after January 1, 2024, a taxpayer entitled to a federal earned-27 |
|---|
| 442 | 442 | | income credit shall be allowed a Rhode Island earned-income credit equal to sixteen percent (16%) 28 |
|---|
| 443 | 443 | | of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island 29 |
|---|
| 444 | 444 | | income tax. 30 |
|---|
| 445 | 445 | | (2) Refundable portion. 31 |
|---|
| 446 | 446 | | In the event the Rhode Island earned-income credit allowed under paragraph (N)(1) of this 32 |
|---|
| 447 | 447 | | section exceeds the amount of Rhode Island income tax, a refundable earned-income credit shall 33 |
|---|
| 448 | 448 | | be allowed as follows. 34 |
|---|
| 449 | 449 | | |
|---|
| 450 | 450 | | |
|---|
| 451 | 451 | | LC001550 - Page 13 of 18 |
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| 452 | 452 | | (i) For tax years beginning before January 1, 2015, for purposes of paragraph (2) refundable 1 |
|---|
| 453 | 453 | | earned-income credit means fifteen percent (15%) of the amount by which the Rhode Island earned-2 |
|---|
| 454 | 454 | | income credit exceeds the Rhode Island income tax. 3 |
|---|
| 455 | 455 | | (ii) For tax years beginning on or after January 1, 2015, for purposes of paragraph (2) 4 |
|---|
| 456 | 456 | | refundable earned-income credit means one hundred percent (100%) of the amount by which the 5 |
|---|
| 457 | 457 | | Rhode Island earned-income credit exceeds the Rhode Island income tax. 6 |
|---|
| 458 | 458 | | (O) The tax administrator shall recalculate and submit necessary revisions to paragraphs 7 |
|---|
| 459 | 459 | | (A) through (J) to the general assembly no later than February 1, 2010, and every three (3) years 8 |
|---|
| 460 | 460 | | thereafter for inclusion in the statute. 9 |
|---|
| 461 | 461 | | (3) For the period January 1, 2011, through December 31, 2011, and thereafter, “Rhode 10 |
|---|
| 462 | 462 | | Island taxable income” means federal adjusted gross income as determined under the Internal 11 |
|---|
| 463 | 463 | | Revenue Code, 26 U.S.C. § 1 et seq., and as modified for Rhode Island purposes pursuant to § 44-12 |
|---|
| 464 | 464 | | 30-12 less the amount of Rhode Island Basic Standard Deduction allowed pursuant to subparagraph 13 |
|---|
| 465 | 465 | | 44-30-2.6(c)(3)(B), and less the amount of personal exemption allowed pursuant to subparagraph 14 |
|---|
| 466 | 466 | | 44-30-2.6(c)(3)(C). 15 |
|---|
| 467 | 467 | | (A) Tax imposed. 16 |
|---|
| 468 | 468 | | (I) There is hereby imposed on the taxable income of married individuals filing joint 17 |
|---|
| 469 | 469 | | returns, qualifying widow(er), every head of household, unmarried individuals, married individuals 18 |
|---|
| 470 | 470 | | filing separate returns and bankruptcy estates, a tax determined in accordance with the following 19 |
|---|
| 471 | 471 | | table: 20 |
|---|
| 472 | 472 | | RI Taxable Income RI Income Tax 21 |
|---|
| 473 | 473 | | Over But not over Pay + % on Excess on the amount over 22 |
|---|
| 474 | 474 | | $ 0 - $ 55,000 $ 0 + 3.75% $ 0 23 |
|---|
| 475 | 475 | | 55,000 - 125,000 2,063 + 4.75% 55,000 24 |
|---|
| 476 | 476 | | 125,000 - 5,388 + 5.99% 125,000 25 |
|---|
| 477 | 477 | | (II) There is hereby imposed on the taxable income of an estate or trust a tax determined in 26 |
|---|
| 478 | 478 | | accordance with the following table: 27 |
|---|
| 479 | 479 | | RI Taxable Income RI Income Tax 28 |
|---|
| 480 | 480 | | Over But not over Pay + % on Excess on the amount over 29 |
|---|
| 481 | 481 | | $ 0 - $ 2,230 $ 0 + 3.75% $ 0 30 |
|---|
| 482 | 482 | | 2,230 - 7,022 84 + 4.75% 2,230 31 |
|---|
| 483 | 483 | | 7,022 - 312 + 5.99% 7,022 32 |
|---|
| 484 | 484 | | (B) Deductions: 33 |
|---|
| 485 | 485 | | (I) Rhode Island Basic Standard Deduction. 34 |
|---|
| 486 | 486 | | |
|---|
| 487 | 487 | | |
|---|
| 488 | 488 | | LC001550 - Page 14 of 18 |
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| 489 | 489 | | Only the Rhode Island standard deduction shall be allowed in accordance with the 1 |
|---|
| 490 | 490 | | following table: 2 |
|---|
| 491 | 491 | | Filing status: Amount 3 |
|---|
| 492 | 492 | | Single $7,500 4 |
|---|
| 493 | 493 | | Married filing jointly or qualifying widow(er) $15,000 5 |
|---|
| 494 | 494 | | Married filing separately $7,500 6 |
|---|
| 495 | 495 | | Head of Household $11,250 7 |
|---|
| 496 | 496 | | (II) Nonresident alien individuals, estates and trusts are not eligible for standard 8 |
|---|
| 497 | 497 | | deductions. 9 |
|---|
| 498 | 498 | | (III) In the case of any taxpayer whose adjusted gross income, as modified for Rhode Island 10 |
|---|
| 499 | 499 | | purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five thousand 11 |
|---|
| 500 | 500 | | dollars ($175,000), the standard deduction amount shall be reduced by the applicable percentage. 12 |
|---|
| 501 | 501 | | The term “applicable percentage” means twenty (20) percentage points for each five thousand 13 |
|---|
| 502 | 502 | | dollars ($5,000) (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable 14 |
|---|
| 503 | 503 | | year exceeds one hundred seventy-five thousand dollars ($175,000). 15 |
|---|
| 504 | 504 | | (C) Exemption Amount: 16 |
|---|
| 505 | 505 | | (I) The term “exemption amount” means three thousand five hundred dollars ($3,500) 17 |
|---|
| 506 | 506 | | multiplied by the number of exemptions allowed for the taxable year for federal income tax 18 |
|---|
| 507 | 507 | | purposes. For tax years beginning on or after 2018, the term “exemption amount” means the same 19 |
|---|
| 508 | 508 | | as it does in 26 U.S.C. § 151 and 26 U.S.C. § 152 just prior to the enactment of the Tax Cuts and 20 |
|---|
| 509 | 509 | | Jobs Act (Pub. L. No. 115-97) on December 22, 2017. 21 |
|---|
| 510 | 510 | | (II) Exemption amount disallowed in case of certain dependents. In the case of an 22 |
|---|
| 511 | 511 | | individual with respect to whom a deduction under this section is allowable to another taxpayer for 23 |
|---|
| 512 | 512 | | the same taxable year, the exemption amount applicable to such individual for such individual’s 24 |
|---|
| 513 | 513 | | taxable year shall be zero. 25 |
|---|
| 514 | 514 | | (III) Identifying information required. 26 |
|---|
| 515 | 515 | | (1) Except as provided in § 44-30-2.6(c)(3)(C)(II) of this section, no exemption shall be 27 |
|---|
| 516 | 516 | | allowed under this section with respect to any individual unless the Taxpayer Identification Number 28 |
|---|
| 517 | 517 | | of such individual is included on the federal return claiming the exemption for the same tax filing 29 |
|---|
| 518 | 518 | | period. 30 |
|---|
| 519 | 519 | | (2) Notwithstanding the provisions of § 44-30-2.6(c)(3)(C)(I) of this section, in the event 31 |
|---|
| 520 | 520 | | that the Taxpayer Identification Number for each individual is not required to be included on the 32 |
|---|
| 521 | 521 | | federal tax return for the purposes of claiming a personal exemption(s), then the Taxpayer 33 |
|---|
| 522 | 522 | | Identification Number must be provided on the Rhode Island tax return for the purpose of claiming 34 |
|---|
| 523 | 523 | | |
|---|
| 524 | 524 | | |
|---|
| 525 | 525 | | LC001550 - Page 15 of 18 |
|---|
| 526 | 526 | | said exemption(s). 1 |
|---|
| 527 | 527 | | (D) In the case of any taxpayer whose adjusted gross income, as modified for Rhode Island 2 |
|---|
| 528 | 528 | | purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five thousand 3 |
|---|
| 529 | 529 | | dollars ($175,000), the exemption amount shall be reduced by the applicable percentage. The term 4 |
|---|
| 530 | 530 | | “applicable percentage” means twenty (20) percentage points for each five thousand dollars 5 |
|---|
| 531 | 531 | | ($5,000) (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year 6 |
|---|
| 532 | 532 | | exceeds one hundred seventy-five thousand dollars ($175,000). 7 |
|---|
| 533 | 533 | | (E) Adjustment for inflation. The dollar amount contained in subparagraphs 44-30-8 |
|---|
| 534 | 534 | | 2.6(c)(3)(A), 44-30-2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) shall be increased annually by an amount 9 |
|---|
| 535 | 535 | | equal to: 10 |
|---|
| 536 | 536 | | (I) Such dollar amount contained in subparagraphs 44-30-2.6(c)(3)(A), 44-30-2.6(c)(3)(B) 11 |
|---|
| 537 | 537 | | and 44-30-2.6(c)(3)(C) adjusted for inflation using a base tax year of 2000, multiplied by; 12 |
|---|
| 538 | 538 | | (II) The cost-of-living adjustment with a base year of 2000. 13 |
|---|
| 539 | 539 | | (III) For the purposes of this section, the cost-of-living adjustment for any calendar year is 14 |
|---|
| 540 | 540 | | the percentage (if any) by which the consumer price index for the preceding calendar year exceeds 15 |
|---|
| 541 | 541 | | the consumer price index for the base year. The consumer price index for any calendar year is the 16 |
|---|
| 542 | 542 | | average of the consumer price index as of the close of the twelve-month (12) period ending on 17 |
|---|
| 543 | 543 | | August 31, of such calendar year. 18 |
|---|
| 544 | 544 | | (IV) For the purpose of this section the term “consumer price index” means the last 19 |
|---|
| 545 | 545 | | consumer price index for all urban consumers published by the department of labor. For the purpose 20 |
|---|
| 546 | 546 | | of this section the revision of the consumer price index that is most consistent with the consumer 21 |
|---|
| 547 | 547 | | price index for calendar year 1986 shall be used. 22 |
|---|
| 548 | 548 | | (V) If any increase determined under this section is not a multiple of fifty dollars ($50.00), 23 |
|---|
| 549 | 549 | | such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the case of a 24 |
|---|
| 550 | 550 | | married individual filing separate return, if any increase determined under this section is not a 25 |
|---|
| 551 | 551 | | multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower multiple 26 |
|---|
| 552 | 552 | | of twenty-five dollars ($25.00). 27 |
|---|
| 553 | 553 | | (F) Credits against tax. 28 |
|---|
| 554 | 554 | | (I) Notwithstanding any other provisions of Rhode Island Law, for tax years beginning on 29 |
|---|
| 555 | 555 | | or after January 1, 2011, the only credits allowed against a tax imposed under this chapter shall be 30 |
|---|
| 556 | 556 | | as follows: 31 |
|---|
| 557 | 557 | | (a) Rhode Island earned-income credit: Credit shall be allowed for earned-income credit 32 |
|---|
| 558 | 558 | | pursuant to subparagraph 44-30-2.6(c)(2)(N). 33 |
|---|
| 559 | 559 | | (b) Property Tax Relief Credit: Credit shall be allowed for property tax relief as provided 34 |
|---|
| 560 | 560 | | |
|---|
| 561 | 561 | | |
|---|
| 562 | 562 | | LC001550 - Page 16 of 18 |
|---|
| 563 | 563 | | in § 44-33-1 et seq. 1 |
|---|
| 564 | 564 | | (c) Lead Paint Credit: Credit shall be allowed for residential lead abatement income tax 2 |
|---|
| 565 | 565 | | credit as provided in § 44-30.3-1 et seq. 3 |
|---|
| 566 | 566 | | (d) Credit for income taxes of other states. Credit shall be allowed for income tax paid to 4 |
|---|
| 567 | 567 | | other states pursuant to § 44-30-74. 5 |
|---|
| 568 | 568 | | (e) Historic Structures Tax Credit: Credit shall be allowed for historic structures tax credit 6 |
|---|
| 569 | 569 | | as provided in § 44-33.2-1 et seq. 7 |
|---|
| 570 | 570 | | (f) Motion Picture Productions Tax Credit: Credit shall be allowed for motion picture 8 |
|---|
| 571 | 571 | | production tax credit as provided in § 44-31.2-1 et seq. 9 |
|---|
| 572 | 572 | | (g) Child and Dependent Care: Credit shall be allowed for twenty-five percent (25%) of 10 |
|---|
| 573 | 573 | | the federal child and dependent care credit allowable for the taxable year for federal purposes; 11 |
|---|
| 574 | 574 | | provided, however, such credit shall not exceed the Rhode Island tax liability. 12 |
|---|
| 575 | 575 | | (h) Tax credits for contributions to Scholarship Organizations: Credit shall be allowed for 13 |
|---|
| 576 | 576 | | contributions to scholarship organizations as provided in chapter 62 of title 44. 14 |
|---|
| 577 | 577 | | (i) Credit for tax withheld. Wages upon which tax is required to be withheld shall be taxable 15 |
|---|
| 578 | 578 | | as if no withholding were required, but any amount of Rhode Island personal income tax actually 16 |
|---|
| 579 | 579 | | deducted and withheld in any calendar year shall be deemed to have been paid to the tax 17 |
|---|
| 580 | 580 | | administrator on behalf of the person from whom withheld, and the person shall be credited with 18 |
|---|
| 581 | 581 | | having paid that amount of tax for the taxable year beginning in that calendar year. For a taxable 19 |
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| 582 | 582 | | year of less than twelve (12) months, the credit shall be made under regulations of the tax 20 |
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| 583 | 583 | | administrator. 21 |
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| 584 | 584 | | (j) Stay Invested in RI Wavemaker Fellowship: Credit shall be allowed for stay invested in 22 |
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| 585 | 585 | | RI wavemaker fellowship program as provided in § 42-64.26-1 et seq. 23 |
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| 586 | 586 | | (k) Rebuild Rhode Island: Credit shall be allowed for rebuild RI tax credit as provided in 24 |
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| 587 | 587 | | § 42-64.20-1 et seq. 25 |
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| 588 | 588 | | (l) Rhode Island Qualified Jobs Incentive Program: Credit shall be allowed for Rhode 26 |
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| 589 | 589 | | Island new qualified jobs incentive program credit as provided in § 44-48.3-1 et seq. 27 |
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| 590 | 590 | | (m) Historic homeownership assistance act: Effective for tax year 2017 and thereafter, 28 |
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| 591 | 591 | | unused carryforward for such credit previously issued shall be allowed for the historic 29 |
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| 592 | 592 | | homeownership assistance act as provided in § 44-33.1-4. This allowance is for credits already 30 |
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| 593 | 593 | | issued pursuant to § 44-33.1-4 and shall not be construed to authorize the issuance of new credits 31 |
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| 594 | 594 | | under the historic homeownership assistance act. 32 |
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| 595 | 595 | | (n) Credit against tax for ABLE contributions. An employer shall be allowed a credit 33 |
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| 596 | 596 | | against income tax for contributions to an eligible employee’s ABLE account, established pursuant 34 |
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| 597 | 597 | | |
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| 598 | 598 | | |
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| 599 | 599 | | LC001550 - Page 17 of 18 |
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| 600 | 600 | | to §42-7.2-20.3, for a maximum credit of two thousand dollars ($2,000) per employee, per year. 1 |
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| 601 | 601 | | (2) Except as provided in section 1 above, no other state and federal tax credit shall be 2 |
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| 602 | 602 | | available to the taxpayers in computing tax liability under this chapter. 3 |
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| 603 | 603 | | SECTION 3. This act shall take effect upon passage. 4 |
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| 604 | 604 | | ======== |
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| 605 | 605 | | LC001550 |
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| 606 | 606 | | ======== |
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| 607 | 607 | | |
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| 608 | 608 | | |
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| 609 | 609 | | LC001550 - Page 18 of 18 |
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| 610 | 610 | | EXPLANATION |
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| 611 | 611 | | BY THE LEGISLATIVE COUNCIL |
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| 612 | 612 | | OF |
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| 613 | 613 | | A N A C T |
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| 614 | 614 | | RELATING TO TAXATION -- BUSINESS CORPORATION TAX |
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| 615 | 615 | | *** |
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| 616 | 616 | | This act would allow an income tax credit for employer contributions to an eligible 1 |
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| 617 | 617 | | employee's ABLE account, for a maximum credit of two thousand dollars ($2,000) per employee, 2 |
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| 618 | 618 | | per year. 3 |
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| 619 | 619 | | This act would take effect upon passage. 4 |
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| 620 | 620 | | ======== |
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| 621 | 621 | | LC001550 |
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| 622 | 622 | | ======== |
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