News & Events

2017 Rhode Island Budget –

Includes changes affecting business and individual taxes

Budget 2017

-by David Gobeille, Tax Partner

Before the summer recess, the RI legislature passed and Governor Raimondo signed the 2017 Rhode Island budget into law.  Included in the budget are some minor changes that generally benefit a number of business and individual taxpayers for years beginning on or after January 1, 2017. The following are some of the key provisions:

  • The corporate minimum tax will be reduced to $400. Originally, this had been a $500 amount for many years and reduced to $450 for the past several years.
  • For individuals, the earned income credit available against the personal income tax is increased to 15% of the federal credit (currently 12.5% of the federal credit).
  • Individuals who have reached their Social Security retirement age will be eligible for up to a $15,000 exemption of retirement (pension) income from the RI personal income tax. The reduction will be limited to those with federal adjusted gross income of up to $80,000 (single) and $100,000 (joint). These limits will be adjusted for inflation.
  • Rhode Island aligned the deadlines for filing Rhode Island corporation and partnership tax returns with the new federal deadlines (beginning with calendar year 2016 returns). Starting in 2017, both federal and RI tax return deadlines for partnerships (and entities like LLC’s taxed as partnerships) will be by March 15th, which was previously April 15th.  C corporation returns will now be due by April 15th (formerly due by March 15).
  • The bill extended the Motion Picture Production Tax credit sunset date from July 1, 2019 until July 1, 2021.
  • The Historic Preservation Tax Credits sunset date was extended until June 30, 2017 from its previous sunset date of June 30, 2016.

Should you have any questions, please contact one of Sansiveri’s tax professionals at 401-331-0500; we are happy to help. You can view the press release regarding the 2017 budget bill signed into law [here]. Thank you.