Background
A taxpayer had filed with the Division a request about how the federal Capital Construction Fund ("CCF") deduction would apply for Rhode Island personal income tax purposes.
The CCF is a special investment program administered by the National Marine Fisheries Services and the Internal Revenue Service. The program allows commercial fishermen to defer paying federal income tax on certain income they invest in a CCF account and later use to acquire, build, or rebuild fishing vessels.
Decision
In Ruling Request No. 2019-01, the Division said it will disallow CCF deductions on Rhode Island returns for tax year 2019 forward, but will continue to honor qualifying CCF deductions on Rhode Island returns taken prior to tax year 2019.
The ruling, which is limited to the facts stated, is available on the Division website.
