H8450

Adopts several concepts from other jurisdictions with the goal of promoting a stronger climate for business growth in Rhode Island, including a "Franchise Fee" in lieu of the corporation tax.

Introduced·4/15/26
Introduced Text

Rhode Island Business Climate Reform Act introduces a franchise fee for corporations, LLCs, and partnerships, replacing the corporation tax.

The Rhode Island Business Climate Reform Act introduces a franchise fee system for corporations, limited liability companies (LLCs), and partnerships, replacing the corporation tax. The fee varies based on the number of authorized shares, ranging from $450 for corporations with 5,000 or fewer shares to $1,000 for those with 10,001 or more shares. The act also establishes a court of chancery to handle equity actions, sets provisions for arbitrations, and eliminates the cap on the homestead estate exemption. It allows for anonymous LLC filings and permits trusts to last up to 1,000 years.

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  • Core Provisions
  • Implementation
  • Impact
  • Legal Framework
  • Critical Issues

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Where it stands

Current
Corporations Committee
Next
Committee decision

Sponsors

DDDDDDI
7
3
RRR
Democratic CaucusRepublican Caucus

Calendar

Apr 28

12:00 AM

House Corporations Hearing

History

Apr 28

House

Committee recommended measure be held for further study

Apr 24

House

Scheduled for hearing and/or consideration (04/28/2026)

Apr 15

House

Introduced, referred to House Corporations