2014 -- H 7483 | |
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LC004396 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2014 | |
____________ | |
A N A C T | |
RELATING TO TAXATION -- TAX CREDIT FOR PURCHASE OF GUN SAFE | |
| |
Introduced By: Representatives Carnevale, Corvese, Canario, Costa, and Chippendale | |
Date Introduced: February 13, 2014 | |
Referred To: House Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 44-30-2.6 of the General Laws in Chapter 44-30 entitled "Personal |
2 | Income Tax" is hereby amended to read as follows: |
3 | 44-30-2.6. Rhode Island taxable income -- Rate of tax. -- (a) "Rhode Island taxable |
4 | income" means federal taxable income as determined under the Internal Revenue Code, 26 U.S.C. |
5 | section 1 et seq., not including the increase in the basic standard deduction amount for married |
6 | couples filing joint returns as provided in the Jobs and Growth Tax Relief Reconciliation Act of |
7 | 2003 and the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), and as |
8 | modified by the modifications in section 44-30-12. |
9 | (b) Notwithstanding the provisions of sections 44-30-1 and 44-30-2, for tax years |
10 | beginning on or after January 1, 2001, a Rhode Island personal income tax is imposed upon the |
11 | Rhode Island taxable income of residents and nonresidents, including estates and trusts, at the rate |
12 | of twenty-five and one-half percent (25.5%) for tax year 2001, and twenty-five percent (25%) for |
13 | tax year 2002 and thereafter of the federal income tax rates, including capital gains rates and any |
14 | other special rates for other types of income, except as provided in section 44-30-2.7, which were |
15 | in effect immediately prior to enactment of the Economic Growth and Tax Relief Reconciliation |
16 | Act of 2001 (EGTRRA); provided, rate schedules shall be adjusted for inflation by the tax |
17 | administrator beginning in taxable year 2002 and thereafter in the manner prescribed for |
18 | adjustment by the commissioner of Internal Revenue in 26 U.S.C. section 1(f). However, for tax |
19 | years beginning on or after January 1, 2006, a taxpayer may elect to use the alternative flat tax |
| |
1 | rate provided in section 44-30-2.10 to calculate his or her personal income tax liability. |
2 | (c) For tax years beginning on or after January 1, 2001, if a taxpayer has an alternative |
3 | minimum tax for federal tax purposes, the taxpayer shall determine if he or she has a Rhode |
4 | Island alternative minimum tax. The Rhode Island alternative minimum tax shall be computed by |
5 | multiplying the federal tentative minimum tax without allowing for the increased exemptions |
6 | under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (as redetermined on federal |
7 | form 6251 Alternative Minimum Tax-Individuals) by twenty-five and one-half percent (25.5%) |
8 | for tax year 2001, and twenty-five percent (25%) for tax year 2002 and thereafter, and comparing |
9 | the product to the Rhode Island tax as computed otherwise under this section. The excess shall be |
10 | the taxpayer's Rhode Island alternative minimum tax. |
11 | (1) For tax years beginning on or after January 1, 2005 and thereafter the exemption |
12 | amount for alternative minimum tax, for Rhode Island purposes, shall be adjusted for inflation by |
13 | the tax administrator in the manner prescribed for adjustment by the commissioner of Internal |
14 | Revenue in 26 U.S.C. section 1(f). |
15 | (2) For the period January 1, 2007 through December 31, 2007, and thereafter, Rhode |
16 | Island taxable income shall be determined by deducting from federal adjusted gross income as |
17 | defined in 26 U.S.C. section 62 as modified by the modifications in section 44-30-12 the Rhode |
18 | Island itemized deduction amount and the Rhode Island exemption amount as determined in this |
19 | section. |
20 | (A) Tax imposed. |
21 | (1) There is hereby imposed on the taxable income of married individuals filing joint |
22 | returns and surviving spouses a tax determined in accordance with the following table: |
23 | If taxable income is: The tax is: |
24 | Not over $53,150 3.75% of taxable income |
25 | Over $53,150 but not over $128,500 $1,993.13 plus 7.00% of the excess over |
26 | $53,150 |
27 | Over $128,500 but not over $195,850 $7,267.63 plus 7.75% of the excess over |
28 | $128,500 |
29 | Over $195,850 but not over $349,700 $12,487.25 plus 9.00% of the excess over |
30 | $195,850 |
31 | Over $349,700 $26,333.75 plus 9.90% of the excess over $349,700 |
32 | (2) There is hereby imposed on the taxable income of every head of household a tax |
33 | determined in accordance with the following table: |
34 | If taxable income is: The tax is: |
| LC004396 - Page 2 of 15 |
1 | Not over $42,650 3.75% of taxable income |
2 | Over $42,650 but not over $110,100 $1,599.38 plus 7.00% of the excess over |
3 | $42,650 |
4 | Over $110,100 but not over $178,350 $6,320.88 plus 7.75% of the excess over |
5 | $110,100 |
6 | Over $178,350 but not over $349,700 $11,610.25 plus 9.00% of the excess over |
7 | $178,350 |
8 | Over $349,700 $27,031.75 plus 9.90% of the excess over $349,700 |
9 | (3) There is hereby imposed on the taxable income of unmarried individuals (other than |
10 | surviving spouses and heads of households) a tax determined in accordance with the following |
11 | table: |
12 | If taxable income is: The tax is: |
13 | Not over $31,850 3.75% of taxable income |
14 | Over $31,850 but not over $77,100 $1,194.38 plus 7.00% of the excess over |
15 | $31,850 |
16 | Over $77,100 but not over $160,850 $4,361.88 plus 7.75% of the excess over |
17 | $77,100 |
18 | Over $160,850 but not over $349,700 $10,852.50 plus 9.00% of the excess over |
19 | $160,850 |
20 | Over $349,700 $27,849.00 plus 9.90% of the excess over $349,700 |
21 | (4) There is hereby imposed on the taxable income of married individuals filing separate |
22 | returns and bankruptcy estates a tax determined in accordance with the following table: |
23 | If taxable income is: The tax is: |
24 | Not over $26,575 3.75% of taxable income |
25 | Over $26,575 but not over $64,250 $996.56 plus 7.00% of the excess over $26,575 |
26 | Over $64,250 but not over $97,925 $3,633.81 plus 7.75% of the excess over |
27 | $64,250 |
28 | Over $97,925 but not over $174,850 $6,243.63 plus 9.00% of the excess over |
29 | $97,925 |
30 | Over $174,850 $13,166.88 plus 9.90% of the excess over $174,850 |
31 | (5) There is hereby imposed a taxable income of an estate or trust a tax determined in |
32 | accordance with the following table: |
33 | If taxable income is: The tax is: |
34 | Not over $2,150 3.75% of taxable income |
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1 | Over $2,150 but not over $5,000 $80.63 plus 7.00% of the excess over $2,150 |
2 | Over $5,000 but not over $7,650 $280.13 plus 7.75% of the excess over $5,000 |
3 | Over $7,650 but not over $10,450 $485.50 plus 9.00% of the excess over $7,650 |
4 | Over $10,450 $737.50 plus 9.90% of the excess over $10,450 |
5 | (6) Adjustments for inflation. The dollars amount contained in paragraph (A) shall be |
6 | increased by an amount equal to: |
7 | (a) Such dollar amount contained in paragraph (A) in the year 1993, multiplied by; |
8 | (b) The cost-of-living adjustment determined under section (J) with a base year of 1993; |
9 | (c) The cost-of-living adjustment referred to in subparagraph (a) and (b) used in making |
10 | adjustments to the nine percent (9%) and nine and nine tenths percent (9.9%) dollar amounts shall |
11 | be determined under section (J) by substituting "1994" for "1993." |
12 | (B) Maximum capital gains rates |
13 | (1) In general |
14 | If a taxpayer has a net capital gain for tax years ending prior to January 1, 2010, the tax |
15 | imposed by this section for such taxable year shall not exceed the sum of: |
16 | (a) 2.5 % of the net capital gain as reported for federal income tax purposes under section |
17 | 26 U.S.C. 1(h)(1)(a) and 26 U.S.C. 1(h)(1)(b). |
18 | (b) 5% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. |
19 | 1(h)(1)(c). |
20 | (c) 6.25% of the net capital gain as reported for federal income tax purposes under 26 |
21 | U.S.C. 1(h)(1)(d). |
22 | (d) 7% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. |
23 | 1(h)(1)(e). |
24 | (2) For tax years beginning on or after January 1, 2010 the tax imposed on net capital |
25 | gain shall be determined under subdivision 44-30-2.6(c)(2)(A). |
26 | (C) Itemized deductions. |
27 | (1) In general |
28 | For the purposes of section (2) "itemized deductions" means the amount of federal |
29 | itemized deductions as modified by the modifications in section 44-30-12. |
30 | (2) Individuals who do not itemize their deductions In the case of an individual who does |
31 | not elect to itemize his deductions for the taxable year, they may elect to take a standard |
32 | deduction. |
33 | (3) Basic standard deduction. The Rhode Island standard deduction shall be allowed in |
34 | accordance with the following table: |
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1 | Filing status Amount |
2 | Single $5,350 |
3 | Married filing jointly or qualifying widow(er) $8,900 |
4 | Married filing separately $4,450 |
5 | Head of Household $7,850 |
6 | (4) Additional standard deduction for the aged and blind. An additional standard |
7 | deduction shall be allowed for individuals age sixty-five (65) or older or blind in the amount of |
8 | $1,300 for individuals who are not married and $1,050 for individuals who are married. |
9 | (5) Limitation on basic standard deduction in the case of certain dependents. In the case |
10 | of an individual to whom a deduction under section (E) is allowable to another taxpayer, the basic |
11 | standard deduction applicable to such individual shall not exceed the greater of: |
12 | (a) $850; |
13 | (b) The sum of $300 and such individual's earned income; |
14 | (6) Certain individuals not eligible for standard deduction. In the case of: |
15 | (a) A married individual filing a separate return where either spouse itemizes deductions; |
16 | (b) Nonresident alien individual; |
17 | (c) An estate or trust; |
18 | The standard deduction shall be zero. |
19 | (7) Adjustments for inflation. Each dollars amount contained in paragraphs (3), (4) and |
20 | (5) shall be increased by an amount equal to: |
21 | (a) Such dollar amount contained in paragraphs (3), (4) and (5) in the year 1988, |
22 | multiplied by |
23 | (b) The cost-of-living adjustment determined under section (J) with a base year of 1988. |
24 | (D) Overall limitation on itemized deductions |
25 | (1) General rule. |
26 | In the case of an individual whose adjusted gross income as modified by section 44-30-12 |
27 | exceeds the applicable amount, the amount of the itemized deductions otherwise allowable for the |
28 | taxable year shall be reduced by the lesser of: |
29 | (a) Three percent (3%) of the excess of adjusted gross income as modified by section 44- |
30 | 30-12 over the applicable amount; or |
31 | (b) Eighty percent (80%) of the amount of the itemized deductions otherwise allowable |
32 | for such taxable year. |
33 | (2) Applicable amount. |
34 | (a) In general. |
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1 | For purposes of this section, the term "applicable amount" means $156,400 ($78,200 in |
2 | the case of a separate return by a married individual) |
3 | (b) Adjustments for inflation. |
4 | Each dollar amount contained in paragraph (a) shall be increased by an amount equal to: |
5 | (i) Such dollar amount contained in paragraph (a) in the year 1991, multiplied by |
6 | (ii) The cost-of-living adjustment determined under section (J) with a base year of 1991. |
7 | (3) Phase-out of Limitation. |
8 | (a) In general. |
9 | In the case of taxable year beginning after December 31, 2005, and before January 1, |
10 | 2010, the reduction under section (1) shall be equal to the applicable fraction of the amount which |
11 | would be the amount of such reduction. |
12 | (b) Applicable fraction. |
13 | For purposes of paragraph (a), the applicable fraction shall be determined in accordance |
14 | with the following table: |
15 | For taxable years beginning in calendar year The applicable fraction is |
16 | 2006 and 2007 2/3 |
17 | 2008 and 2009 1/3 |
18 | (E) Exemption amount |
19 | (1) In general. |
20 | Except as otherwise provided in this subsection, the term "exemption amount" mean |
21 | $3,400. |
22 | (2) Exemption amount disallowed in case of certain dependents. In the case of an |
23 | individual with respect to whom a deduction under this section is allowable to another taxpayer |
24 | for the same taxable year, the exemption amount applicable to such individual for such |
25 | individual's taxable year shall be zero. |
26 | (3) Adjustments for inflation. The dollar amount contained in paragraph (1) shall be |
27 | increased by an amount equal to: |
28 | (a) Such dollar amount contained in paragraph (1) in the year 1989, multiplied by |
29 | (b) The cost-of-living adjustment determined under section (J) with a base year of 1989. |
30 | (4) Limitation. |
31 | (a) In general. |
32 | In the case of any taxpayer whose adjusted gross income as modified for the taxable year |
33 | exceeds the threshold amount shall be reduced by the applicable percentage. |
34 | (b) Applicable percentage. |
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1 | In the case of any taxpayer whose adjusted gross income for the taxable year exceeds the |
2 | threshold amount, the exemption amount shall be reduced by two (2) percentage points for each |
3 | $2,500 (or fraction thereof) by which the taxpayer's adjusted gross income for the taxable year |
4 | exceeds the threshold amount. In the case of a married individual filing a separate return, the |
5 | preceding sentence shall be applied by substituting "$1,250" for "$2,500." In no event shall the |
6 | applicable percentage exceed one hundred percent (100%). |
7 | (c) Threshold Amount. |
8 | For the purposes of this paragraph, the term "threshold amount" shall be determined with |
9 | the following table: |
10 | Filing status Amount |
11 | Single $156,400 |
12 | Married filing jointly of qualifying widow(er) $234,600 |
13 | Married filing separately $117,300 |
14 | Head of Household $195,500 |
15 | (d) Adjustments for inflation. Each dollars amount contain in paragraph (b) shall be |
16 | increased by an amount equal to: |
17 | (i) Such dollar amount contained in paragraph (b) in the year 1991, multiplied by |
18 | (ii) The cost-of-living adjustment determined under section (J) with a base year of 1991. |
19 | (5) Phase-out of Limitation. |
20 | (a) In general. |
21 | In the case of taxable years beginning after December 31, 2005, and before January 1, |
22 | 2010, the reduction under section 4 shall be equal to the applicable fraction of the amount which |
23 | would be the amount of such reduction. |
24 | (b) Applicable fraction. |
25 | For the purposes of paragraph (a), the applicable fraction shall be determined in |
26 | accordance with the following table: |
27 | For taxable years beginning in calendar year The applicable fraction is |
28 | 2006 and 2007 2/3 |
29 | 2008 and 2009 1/3 |
30 | (F) Alternative minimum tax |
31 | (1) General rule. - There is hereby imposed (in addition to any other tax imposed by this |
32 | subtitle) a tax equal to the excess (if any) of: |
33 | (a) The tentative minimum tax for the taxable year, over |
34 | (b) The regular tax for the taxable year. |
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1 | (2) The tentative minimum tax for the taxable year is the sum of: |
2 | (a) 6.5 percent of so much of the taxable excess as does not exceed $175,000, plus |
3 | (b) 7.0 percent of so much of the taxable excess above $175,000. |
4 | (3) The amount determined under the preceding sentence shall be reduced by the |
5 | alternative minimum tax foreign tax credit for the taxable year. |
6 | (4) Taxable excess. - For the purposes of this subsection the term "taxable excess" means |
7 | so much of the federal alternative minimum taxable income as modified by the modifications in |
8 | section 44-30-12 as exceeds the exemption amount. |
9 | (5) In the case of a married individual filing a separate return, subparagraph (2) shall be |
10 | applied by substituting "$87,500" for $175,000 each place it appears. |
11 | (6) Exemption amount. |
12 | For purposes of this section "exemption amount" means: |
13 | Filing status Amount |
14 | Single $39,150 |
15 | Married filing jointly or qualifying widow(er) $53,700 |
16 | Married filing separately $26,850 |
17 | Head of Household $39,150 |
18 | Estate or trust $24,650 |
19 | (7) Treatment of unearned income of minor children |
20 | (a) In general. |
21 | In the case of a minor child, the exemption amount for purposes of section (6) shall not |
22 | exceed the sum of: |
23 | (i) Such child's earned income, plus |
24 | (ii) $6,000. |
25 | (8) Adjustments for inflation. |
26 | The dollar amount contained in paragraphs (6) and (7) shall be increased by an amount |
27 | equal to: |
28 | (a) Such dollar amount contained in paragraphs (6) and (7) in the year 2004, multiplied |
29 | by |
30 | (b) The cost-of-living adjustment determined under section (J) with a base year of 2004. |
31 | (9) Phase-out. |
32 | (a) In general. |
33 | The exemption amount of any taxpayer shall be reduced (but not below zero) by an |
34 | amount equal to twenty-five percent (25%) of the amount by which alternative minimum taxable |
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1 | income of the taxpayer exceeds the threshold amount. |
2 | (b) Threshold amount. |
3 | For purposes of this paragraph, the term "threshold amount" shall be determined with the |
4 | following table: |
5 | Filing status Amount |
6 | Single $123,250 |
7 | Married filing jointly or qualifying widow(er) $164,350 |
8 | Married filing separately $82,175 |
9 | Head of Household $123,250 |
10 | Estate or Trust $82,150 |
11 | (c) Adjustments for inflation |
12 | Each dollar amount contained in paragraph (9) shall be increased by an amount equal to: |
13 | (i) Such dollar amount contained in paragraph (9) in the year 2004, multiplied by |
14 | (ii) The cost-of-living adjustment determined under section (J) with a base year of 2004. |
15 | (G) Other Rhode Island taxes |
16 | (1) General rule. - There is hereby imposed (in addition to any other tax imposed by this |
17 | subtitle) a tax equal to twenty-five percent (25%) of: |
18 | (a) The Federal income tax on lump-sum distributions. |
19 | (b) The Federal income tax on parents' election to report child's interest and dividends. |
20 | (c) The recapture of Federal tax credits that were previously claimed on Rhode Island |
21 | return. |
22 | (H) Tax for children under 18 with investment income |
23 | (1) General rule. - There is hereby imposed a tax equal to twenty-five percent (25%) of: |
24 | (a) The Federal tax for children under the age of 18 with investment income. |
25 | (I) Averaging of farm income |
26 | (1) General rule. - At the election of an individual engaged in a farming business or |
27 | fishing business, the tax imposed in section 2 shall be equal to twenty-five percent (25%) of: |
28 | (a) The Federal averaging of farm income as determined in IRC section 1301. |
29 | (J) Cost-of-living adjustment |
30 | (1) In general. |
31 | The cost-of-living adjustment for any calendar year is the percentage (if any) by which: |
32 | (a) The CPI for the preceding calendar year exceeds |
33 | (b) The CPI for the base year. |
34 | (2) CPI for any calendar year. |
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1 | For purposes of paragraph (1), the CPI for any calendar year is the average of the |
2 | Consumer Price Index as of the close of the twelve (12) month period ending on August 31 of |
3 | such calendar year. |
4 | (3) Consumer Price Index |
5 | For purposes of paragraph (2), the term "consumer price index" means the last consumer |
6 | price index for all urban consumers published by the department of labor. For purposes of the |
7 | preceding sentence, the revision of the consumer price index which is most consistent with the |
8 | consumer price index for calendar year 1986 shall be used. |
9 | (4) Rounding. |
10 | (a) In general. |
11 | If any increase determined under paragraph (1) is not a multiple of $50, such increase |
12 | shall be rounded to the next lowest multiple of $50. |
13 | (b) In the case of a married individual filing a separate return, subparagraph (a) shall be |
14 | applied by substituting "$25" for $50 each place it appears. |
15 | (K) Credits against tax. - For tax years beginning on or after January 1, 2001, a taxpayer |
16 | entitled to any of the following federal credits enacted prior to January 1, 1996 shall be entitled to |
17 | a credit against the Rhode Island tax imposed under this section: |
18 | (1) [Deleted by P.L. 2007, ch. 73, art. 7, section 5]. |
19 | (2) Child and dependent care credit; |
20 | (3) General business credits; |
21 | (4) Credit for elderly or the disabled; |
22 | (5) Credit for prior year minimum tax; |
23 | (6) Mortgage interest credit; |
24 | (7) Empowerment zone employment credit; |
25 | (8) Qualified electric vehicle credit. |
26 | (L) Credit against tax for adoption. - For tax years beginning on or after January 1, 2006, |
27 | a taxpayer entitled to the federal adoption credit shall be entitled to a credit against the Rhode |
28 | Island tax imposed under this section if the adopted child was under the care, custody, or |
29 | supervision of the Rhode Island department of children, youth and families prior to the adoption. |
30 | (M) The credit shall be twenty-five percent (25%) of the aforementioned federal credits |
31 | provided there shall be no deduction based on any federal credits enacted after January 1, 1996, |
32 | including the rate reduction credit provided by the federal Economic Growth and Tax |
33 | Reconciliation Act of 2001 (EGTRRA). In no event shall the tax imposed under this section be |
34 | reduced to less than zero. A taxpayer required to recapture any of the above credits for federal tax |
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1 | purposes shall determine the Rhode Island amount to be recaptured in the same manner as |
2 | prescribed in this subsection. |
3 | (N) Rhode Island earned income credit |
4 | (1) In general. |
5 | A taxpayer entitled to a federal earned income credit shall be allowed a Rhode Island |
6 | earned income credit equal to twenty-five percent (25%) of the federal earned income credit. |
7 | Such credit shall not exceed the amount of the Rhode Island income tax. |
8 | (2) Refundable portion. In the event the Rhode Island earned income credit allowed under |
9 | section (J) exceeds the amount of Rhode Island income tax, a refundable earned income credit |
10 | shall be allowed. |
11 | (a) For purposes of paragraph (2) refundable earned income credit means fifteen percent |
12 | (15%) of the amount by which the Rhode Island earned income credit exceeds the Rhode Island |
13 | income tax. |
14 | (O) The tax administrator shall recalculate and submit necessary revisions to paragraphs |
15 | (A) through (J) to the general assembly no later than February 1, 2010 and every three (3) years |
16 | thereafter for inclusion in the statute. |
17 | (3) For the period January 1, 2011 through December 31, 2011, and thereafter, "Rhode |
18 | Island taxable income" means federal adjusted gross income as determined under the Internal |
19 | Revenue Code, 26 U.S.C. 1 et seq., and as modified for Rhode Island purposes pursuant to |
20 | section 44-30-12 less the amount of Rhode Island Basic Standard Deduction allowed pursuant to |
21 | subparagraph 44-30-2.6(c)(3)(B), and less the amount of personal exemption allowed pursuant of |
22 | subparagraph 44-30-2.6(c)(3)(C). |
23 | (A) Tax imposed. |
24 | (I) There is hereby imposed on the taxable income of married individuals filing joint |
25 | returns, qualifying widow(er), every head of household, unmarried individuals, married |
26 | individuals filing separate returns and bankruptcy estates, a tax determined in accordance with the |
27 | following table: |
28 | RI Taxable Income RI Income Tax |
29 | Over But not over Pay + % on Excess on the amount over |
30 | $ 0 - $ 55,000 $ 0 + 3.75% $ 0 |
31 | 55,000 - 125,000 2,063 + 4.75% 55,000 |
32 | 125,000 - 5,388 + 5.99% 125,000 |
33 | (II) There is hereby imposed on the taxable income of an estate or trust a tax determined |
34 | in accordance with the following table: |
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1 | RI Taxable Income RI Income Tax |
2 | Over But not over Pay + % on Excess on the amount over |
3 | $ 0 - $ 2,230 $ 0 + 3.75% $ 0 |
4 | 2,230 7,022 84 + 4.75% 2,230 |
5 | 7,022 - 312 + 5.99% 7,022 |
6 | (B) Deductions: |
7 | (I) Rhode Island Basic Standard Deduction. |
8 | Only the Rhode Island standard deduction shall be allowed in accordance with the |
9 | following table: |
10 | Filing status: Amount |
11 | Single $7,500 |
12 | Married filing jointly or qualifying widow(er) $15,000 |
13 | Married filing separately $7,500 |
14 | Head of Household $11,250 |
15 | (II) Nonresident alien individuals, estates and trusts are not eligible for standard |
16 | deductions. |
17 | (III) In the case of any taxpayer whose adjusted gross income, as modified for Rhode |
18 | Island purposes pursuant to section 44-30-12, for the taxable year exceeds one hundred seventy- |
19 | five thousand dollars ($175,000), the standard deduction amount shall be reduced by the |
20 | applicable percentage. The term "applicable percentage" means twenty (20) percentage points for |
21 | each five thousand dollars ($5,000) (or fraction thereof) by which the taxpayer's adjusted gross |
22 | income for the taxable year exceeds one hundred seventy-five thousand dollars ($175,000). |
23 | (C) Exemption Amount: |
24 | (I) The term "exemption amount" means three thousand five hundred dollars ($3,500) |
25 | multiplied by the number of exemptions allowed for the taxable year for federal income tax |
26 | purposes. |
27 | (II) Exemption amount disallowed in case of certain dependents. In the case of an |
28 | individual with respect to whom a deduction under this section is allowable to another taxpayer |
29 | for the same taxable year, the exemption amount applicable to such individual for such |
30 | individual's taxable year shall be zero. |
31 | (D) In the case of any taxpayer whose adjusted gross income, as modified for Rhode |
32 | Island purposes pursuant to section 33-30-12, for the taxable year exceeds one hundred seventy- |
33 | five thousand dollars ($175,000), the exemption amount shall be reduced by the applicable |
34 | percentage. The term "applicable percentage" means twenty (20) percentage points for each five |
| LC004396 - Page 12 of 15 |
1 | thousand dollars ($5,000) (or fraction thereof) by which the taxpayer's adjusted gross income for |
2 | the taxable year exceeds one hundred seventy-five thousand dollars ($175,000). |
3 | (E) Adjustment for inflation. - The dollar amount contained in subparagraphs 44-30- |
4 | 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 |
5 | equal to: |
6 | (I) Such dollar amount contained in subparagraphs 44-30-2.6(c)(3)(A), 44-30- |
7 | 2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) adjusted for inflation using a base tax year of 2000, |
8 | multiplied by; |
9 | (II) The cost-of-living adjustment with a base year of 2000. |
10 | (III) For the purposes of this section the cost-of-living adjustment for any calendar year is |
11 | the percentage (if any) by which the consumer price index for the preceding calendar year |
12 | exceeds the consumer price index for the base year. The consumer price index for any calendar |
13 | year is the average of the consumer price index as of the close of the twelve (12) month period |
14 | ending on August 31, of such calendar year. |
15 | (IV) For the purpose of this section the term "consumer price index" means the last |
16 | consumer price index for all urban consumers published by the department of labor. For the |
17 | purpose of this section the revision of the consumer price index which is most consistent with the |
18 | consumer price index for calendar year 1986 shall be used. |
19 | (V) If any increase determined under this section is not a multiple of fifty dollars |
20 | ($50.00), such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the |
21 | case of a married individual filing separate return, if any increase determined under this section is |
22 | not a multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower |
23 | multiple of twenty-five dollars ($25.00). |
24 | (E) Credits against tax. |
25 | (I) Notwithstanding any other provisions of Rhode Island Law, for tax years beginning on |
26 | or after January 1, 2011, the only credits allowed against a tax imposed under this chapter shall be |
27 | as follows: |
28 | (a) Rhode Island Earned Income Credit: Credit shall be allowed for earned income credit |
29 | pursuant to subparagraph 44-30-2.6(c)(2)(N). |
30 | (b) Property Tax Relief Credit: Credit shall be allowed for property tax relief as provided |
31 | in section 44-33-1 et seq. |
32 | (c) Lead Paint Credit: Credit shall be allowed for residential lead abatement income tax |
33 | credit as provided in section 44-30.3-1 et seq. |
34 | (d) Credit for income taxes of other states. - Credit shall be allowed for income tax paid |
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1 | to other states pursuant to section 44-30-74. |
2 | (e) Historic Structures Tax Credit: Credit shall be allowed for historic structures tax |
3 | credit as provided in section 44-33.2-1 et seq. |
4 | (f) Motion Picture Productions Tax Credit: Credit shall be allowed for motion picture |
5 | production tax credit as provided in section 44-31.2-1 et seq. |
6 | (g) Child and Dependent Care: Credit shall be allowed for twenty-five percent (25%) of |
7 | the federal child and dependent care credit allowable for the taxable year for federal purposes; |
8 | provided, however, such credit shall not exceed the Rhode Island tax liability. |
9 | (h) Tax credits for contributions to Scholarship Organizations: Credit shall be allowed for |
10 | contributions to scholarship organizations as provided in section 44-62 et seq. |
11 | (i) Credit for tax withheld. - Wages upon which tax is required to be withheld shall be |
12 | taxable as if no withholding were required, but any amount of Rhode Island personal income tax |
13 | actually deducted and withheld in any calendar year shall be deemed to have been paid to the tax |
14 | administrator on behalf of the person from whom withheld, and the person shall be credited with |
15 | having paid that amount of tax for the taxable year beginning in that calendar year. For a taxable |
16 | year of less than twelve (12) months, the credit shall be made under regulations of the tax |
17 | administrator. |
18 | (j) Credit for purchasing firearms safe. – There shall be allowed a tax credit for the |
19 | purchase of a firearms safe with an Underwriters Laboratories "Residential Security Container" |
20 | rating in the amount of twenty percent (20%) of the purchase price, not to exceed a maximum |
21 | credit of two hundred dollars ($200). Application of the credit shall result in a reduction in the tax |
22 | due but not result in a refund to the taxpayer. The credit shall be available for the 2014 and 2015 |
23 | tax years only. |
24 | (2) Except as provided in section 1 above, no other state and federal tax credit shall be |
25 | available to the taxpayers in computing tax liability under this chapter. |
26 | SECTION 2. This act shall take effect upon passage. |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO TAXATION -- TAX CREDIT FOR PURCHASE OF GUN SAFE | |
*** | |
1 | This act would provide a credit against state income taxes due in the maximum amount of |
2 | two hundred dollars ($200) for the purchase of a U.L. recognized firearms safe, for the 2014 and |
3 | 2015 tax years. |
4 | This act would take effect upon passage. |
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