Bill > S0187

This bill increases the net taxable estate exemption threshold in Rhode Island from $850,000 (the previous limit) to $4,000,000 for deaths occurring on or after January 1, 2026. The bill amends the existing estate tax law by adding a new subsection that specifies this higher exemption limit and maintains similar provisions from previous versions of the law, such as allowing a Rhode Island credit against the determined tax and adjusting the credit amount annually based on the Consumer Price Index for all Urban Consumers (CPI-U). The bill continues to reference the Internal Revenue Code as it existed on January 1, 2001, and ensures that any scheduled increases in the unified federal tax credit will not apply. By raising the exemption threshold, the bill effectively reduces the estate tax burden for larger estates, meaning that only estates valued over $4 million will be subject to state estate taxation when the provision takes effect in 2026.