Modifications to Rhode Island Income of a Resident Individual Due to Decoupling from P.L. 119-21, H.R.1 (2025)

This regulation implements R.I. Gen. Laws § 44-30-12(b)(9), which provides for modifications increasing federal adjusted gross income for the amount of any income, deduction or allowance that would be subject to federal income tax for the taxable years beginning on or before January 1, 2025, but for the enactment of the federal law commonly known as the One Big Beautiful Bill Act (Public Laws No.: 119-21, H.R.1, 119th Cong. (2025)) (“H.R.1”). H.R.1 includes tax provisions that impact tax filing for certain filers for Tax Year 2025 as well as retroactive tax provisions that could impact Tax Years 2022, 2023, and 2024.

Pursuant to R.I. Gen. Laws § 44-30-12(b)(9), Rhode Island decoupled from H.R.1 for the taxable years beginning on or before January 1, 2025, with respect to certain provisions. As a result of decoupling, any income, deduction, or allowance that would be subject to federal income tax for taxable years beginning on or before January 1, 2025, but for the enactment of H.R.1, must be added to federal adjusted gross income for Rhode Island Personal Income Tax purposes to preserve the Rhode Island tax base.