Income/Franchise:
Rhode Island: New Law Extends NOL Carryforward Period from 5 to 20 Years and Limits PTE Tax Credit
H.B. 7225, signed by gov. 6/17/24. Recently signed legislation contains several tax law changes, including revising Rhode Island’s corporate income tax so that for any taxable year beginning on or after January 1, 2025, the net operating loss (NOL) deduction may be carried forward for twenty years rather than just five. Under the new law, the annual Rhode Island NOL deduction continues to be limited so that the amount “shall not exceed the deduction for the taxable year allowable under 26 USC. § 172,” and may not be carried back to any other taxable year. For tax years beginning on or after January 1, 2025, the legislation also revises provisions related to Rhode Island’s pass-through entity (PTE) tax by limiting the state tax credit passed through to owners (on a pro rata basis) for the amount of state income tax paid by the PTE to 90% of the amount of tax paid rather than 100%. Please contact us with any questions.
30 Rockefeller Plaza New York, NY 10112-0015 United States
About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte’s approximately 415,000 peopleworldwide make an impact that matters at www.deloitte.com.
