Bill > S2021

This bill establishes a simplified exemption from state income tax for small-scale Bitcoin transactions, defining Bitcoin as a digital, decentralized currency based on blockchain technology used for peer-to-peer transactions. This exemption applies to individuals and businesses primarily operating in Rhode Island, allowing them to conduct Bitcoin sales or exchanges valued up to $5,000 per month or $20,000 per taxable year without these amounts being included in their taxable income for state income or capital gains tax purposes. Taxpayers can self-certify their eligibility and are required to keep records to verify they stay within the exemption limits, which the Department of Business Regulation will provide guidance on. This provision is set to take effect on January 1, 2027, and will expire on January 1, 2028, unless extended, with a clause ensuring that if any part of the bill is found invalid, the rest will still apply.

Budget and Finance

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