AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX

HB 7702 modifies Rhode Island's personal income tax calculation by adding back certain federal tax exclusions to residents' adjusted gross income. It specifically requires adding nonqualified withdrawals from tuition savings programs (e.g., withdrawals not used for education costs) and federal PPP loan forgiveness exceeding $250,000. The bill also allows a deduction of up to $500 ($1,000 for joint filers) for contributions to Rhode Island's tuition savings program, subject to limits like excluding rollovers or non-participant contributions. This directly affects residents using tuition savings accounts or receiving federal stimulus funds, altering their taxable income for state tax purposes.