§235-9.5  Stock options from qualified high
technology businesses excluded from taxation.  (a)  Notwithstanding any law
to the contrary, all income earned and proceeds derived from stock options or
stock, including stock issued through the exercise of stock options or
warrants, from a qualified high technology business or from a holding company
of a qualified high technology business by an employee, officer, or director of
the qualified high technology business, or investor who qualifies for the
credit under section 235-110.9, that would otherwise be taxed as ordinary
income or as capital gains to those persons shall be excluded from taxation
under this chapter.



Similar provisions shall apply to options to
acquire equity interests and to equity interests themselves with regard to
entities other than corporations.



(b)  For the purposes of this section:



"Holding company of a qualified high
technology business" means any business entity that possesses:



(1)  At least eighty per cent of the total voting
power of the stock or other interest; and



(2)  At least eighty per cent of the total value of
the stock or other interest;



in the qualified high technology business.



"Income earned and proceeds derived from
stock options or stock" includes income from:



(1)  Dividends from stock or stock received through
the exercise of stock options or warrants;



(2)  The receipt or the exercise of stock options or
warrants; or



(3)  The sale of stock options or stock, including
stock issued through the exercise of stock options or warrants.



"Qualified high technology business"
means the same as defined in section 235-7.3. [L 1999, c 178, §20; am L 2000, c
297, §7; am L 2001, c 221, §8]