AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX

SB 2366 amends Rhode Island's personal income tax code to modify how tuition savings program contributions are treated for tax purposes. It allows taxpayers to subtract up to $500 ($1,000 for joint returns) annually from federal adjusted gross income for contributions made to Rhode Island's tuition savings program, with specific restrictions on what qualifies as a deductible contribution. This affects residents using the tuition savings program who claim tax deductions for contributions. The bill also clarifies rules for nonqualified withdrawals from these accounts and their tax treatment. The changes apply to tax years beginning on or after January 1, 2026.