§ 44-43-8 Exclusion for qualifyingsecurities. – (a) For purposes of determining the federal income tax liability of aqualifying taxpayer subject to Rhode Island income tax, the Rhode Island incomeof the taxpayer under §§ 44-30-12 and 44-30-16 shall be determined byexcluding any income, gain, or preference items resulting from the transfer ofemployer securities from a qualified retirement plan, the sale, transfer, orexercise of stock, warrants, options, bonds, notes, or other interests of anycorporation; provided, that at the time of the sale, transfer, or exercise thecorporation is a qualifying corporation with respect to the qualifying taxpayer.
(b) A qualifying taxpayer is a current or former employee ofa qualifying corporation employed for three (3) consecutive months as afull-time employee in accordance with corporate policy, and the estate, heirsand successors of that individual.
(c) A qualifying corporation is any corporation for which:
(1) Any of the securities issued by the corporation aretraded publicly on a recognized exchange;
(2) Its headquarters or principal office in North America islocated in the state of Rhode Island;
(3) It has at least one hundred (100) full-time employees inthe state of Rhode Island or, if greater, at least fifty percent (50%) of itsfull-time employees in North America are based in Rhode Island, at the time itelects (in a manner that may be determined by the tax administrator) to be aqualifying corporation;
(4) Either:
(i) The average annual rate of growth in the number offull-time employees of the corporation in Rhode Island over the five (5) fiscalyears preceding the year of the election by the corporation has been at leastten percent (10%) per annum or if the period is shorter, the period of timeprior to the election by the corporation that its headquarters or principaloffice has been located in Rhode Island, has been at least ten percent (10%)per annum; or
(ii) The amount of the capital stock of the corporationcovered by qualified and non-qualified stock options issued by the corporationand the amount of capital stock of the corporation owned by any qualifiedretirement plan organized for the employees of the corporation equals in theaggregate at least five percent (5%) of the authorized capital stock of thecorporation and at least fifty percent (50%) of the non-executive employees ofthe corporation are the holders of options or are eligible to participate in aqualified retirement plan;
(5) Prior to the end of the fiscal year in which it elects tobe a qualifying corporation, it shall own any facility it is occupying in thestate;
(6) It shall state at the time it files its election to be aqualifying corporation that it intends to maintain its headquarters orprincipal office in the state of Rhode Island and that at least fifty percent(50%) of its full-time employees in North America will be based in the state ofRhode Island for at least ten (10) years; and
(7) During the year in which the corporation files itselection to be treated as a qualifying corporation and in the four (4) fiscalyears following that year, the number of Rhode Island based full-time employeesof the corporation has either increased on the average by at least fifteenpercent (15%) per annum over or in the aggregate has increased by at leastseventy-five percent (75%) the level of Rhode Island based full-time employeeson the first day of the fiscal year in which the election is filed. Theelection by a corporation to be treated as a qualifying corporation shallbecome effective for purposes of this section as of the first day of the fiscalyear during which the election is filed; provided, that in no event shall anelection be effective prior to January 1, 1993.
(d) For purposes of this section, if a corporation is amember of an "affiliated group" of corporations (as defined in 26 U.S.C. §1504(a)), it shall be considered to be the employer of the employees of theother members of that group. In the event a corporation fails to maintain therequired average annual rate of growth in Rhode Island based full-timeemployees during the year in which it files its election or in any of its four(4) succeeding fiscal years, or if it fails to thereafter retain the highestlevel of Rhode Island based full-time employees required under this section orotherwise fails to satisfy the requirements of this section, the corporationceases being a qualifying corporation, and no exclusion under this sectionapplies. As a condition to the acceptance of its election to be treated as aqualifying corporation, the corporation must agree that if it should fail tomeet the requirements in this section in the future that it will recapture andinclude in its Rhode Island tax liability an amount equal to one hundredpercent (100%) of the investment tax credits it claimed against its RhodeIsland business corporation tax liability during the prior ten (10) year period.
(e) The director of the Rhode Island economic developmentcorporation is authorized to promulgate regulations establishing standards foremployee recruitment and job training.
§ 44-43-8 Exclusion for qualifyingsecurities. – (a) For purposes of determining the federal income tax liability of aqualifying taxpayer subject to Rhode Island income tax, the Rhode Island incomeof the taxpayer under §§ 44-30-12 and 44-30-16 shall be determined byexcluding any income, gain, or preference items resulting from the transfer ofemployer securities from a qualified retirement plan, the sale, transfer, orexercise of stock, warrants, options, bonds, notes, or other interests of anycorporation; provided, that at the time of the sale, transfer, or exercise thecorporation is a qualifying corporation with respect to the qualifying taxpayer.
(b) A qualifying taxpayer is a current or former employee ofa qualifying corporation employed for three (3) consecutive months as afull-time employee in accordance with corporate policy, and the estate, heirsand successors of that individual.
(c) A qualifying corporation is any corporation for which:
(1) Any of the securities issued by the corporation aretraded publicly on a recognized exchange;
(2) Its headquarters or principal office in North America islocated in the state of Rhode Island;
(3) It has at least one hundred (100) full-time employees inthe state of Rhode Island or, if greater, at least fifty percent (50%) of itsfull-time employees in North America are based in Rhode Island, at the time itelects (in a manner that may be determined by the tax administrator) to be aqualifying corporation;
(4) Either:
(i) The average annual rate of growth in the number offull-time employees of the corporation in Rhode Island over the five (5) fiscalyears preceding the year of the election by the corporation has been at leastten percent (10%) per annum or if the period is shorter, the period of timeprior to the election by the corporation that its headquarters or principaloffice has been located in Rhode Island, has been at least ten percent (10%)per annum; or
(ii) The amount of the capital stock of the corporationcovered by qualified and non-qualified stock options issued by the corporationand the amount of capital stock of the corporation owned by any qualifiedretirement plan organized for the employees of the corporation equals in theaggregate at least five percent (5%) of the authorized capital stock of thecorporation and at least fifty percent (50%) of the non-executive employees ofthe corporation are the holders of options or are eligible to participate in aqualified retirement plan;
(5) Prior to the end of the fiscal year in which it elects tobe a qualifying corporation, it shall own any facility it is occupying in thestate;
(6) It shall state at the time it files its election to be aqualifying corporation that it intends to maintain its headquarters orprincipal office in the state of Rhode Island and that at least fifty percent(50%) of its full-time employees in North America will be based in the state ofRhode Island for at least ten (10) years; and
(7) During the year in which the corporation files itselection to be treated as a qualifying corporation and in the four (4) fiscalyears following that year, the number of Rhode Island based full-time employeesof the corporation has either increased on the average by at least fifteenpercent (15%) per annum over or in the aggregate has increased by at leastseventy-five percent (75%) the level of Rhode Island based full-time employeeson the first day of the fiscal year in which the election is filed. Theelection by a corporation to be treated as a qualifying corporation shallbecome effective for purposes of this section as of the first day of the fiscalyear during which the election is filed; provided, that in no event shall anelection be effective prior to January 1, 1993.
(d) For purposes of this section, if a corporation is amember of an "affiliated group" of corporations (as defined in 26 U.S.C. §1504(a)), it shall be considered to be the employer of the employees of theother members of that group. In the event a corporation fails to maintain therequired average annual rate of growth in Rhode Island based full-timeemployees during the year in which it files its election or in any of its four(4) succeeding fiscal years, or if it fails to thereafter retain the highestlevel of Rhode Island based full-time employees required under this section orotherwise fails to satisfy the requirements of this section, the corporationceases being a qualifying corporation, and no exclusion under this sectionapplies. As a condition to the acceptance of its election to be treated as aqualifying corporation, the corporation must agree that if it should fail tomeet the requirements in this section in the future that it will recapture andinclude in its Rhode Island tax liability an amount equal to one hundredpercent (100%) of the investment tax credits it claimed against its RhodeIsland business corporation tax liability during the prior ten (10) year period.
(e) The director of the Rhode Island economic developmentcorporation is authorized to promulgate regulations establishing standards foremployee recruitment and job training.
§ 44-43-8 Exclusion for qualifyingsecurities. – (a) For purposes of determining the federal income tax liability of aqualifying taxpayer subject to Rhode Island income tax, the Rhode Island incomeof the taxpayer under §§ 44-30-12 and 44-30-16 shall be determined byexcluding any income, gain, or preference items resulting from the transfer ofemployer securities from a qualified retirement plan, the sale, transfer, orexercise of stock, warrants, options, bonds, notes, or other interests of anycorporation; provided, that at the time of the sale, transfer, or exercise thecorporation is a qualifying corporation with respect to the qualifying taxpayer.
(b) A qualifying taxpayer is a current or former employee ofa qualifying corporation employed for three (3) consecutive months as afull-time employee in accordance with corporate policy, and the estate, heirsand successors of that individual.
(c) A qualifying corporation is any corporation for which:
(1) Any of the securities issued by the corporation aretraded publicly on a recognized exchange;
(2) Its headquarters or principal office in North America islocated in the state of Rhode Island;
(3) It has at least one hundred (100) full-time employees inthe state of Rhode Island or, if greater, at least fifty percent (50%) of itsfull-time employees in North America are based in Rhode Island, at the time itelects (in a manner that may be determined by the tax administrator) to be aqualifying corporation;
(4) Either:
(i) The average annual rate of growth in the number offull-time employees of the corporation in Rhode Island over the five (5) fiscalyears preceding the year of the election by the corporation has been at leastten percent (10%) per annum or if the period is shorter, the period of timeprior to the election by the corporation that its headquarters or principaloffice has been located in Rhode Island, has been at least ten percent (10%)per annum; or
(ii) The amount of the capital stock of the corporationcovered by qualified and non-qualified stock options issued by the corporationand the amount of capital stock of the corporation owned by any qualifiedretirement plan organized for the employees of the corporation equals in theaggregate at least five percent (5%) of the authorized capital stock of thecorporation and at least fifty percent (50%) of the non-executive employees ofthe corporation are the holders of options or are eligible to participate in aqualified retirement plan;
(5) Prior to the end of the fiscal year in which it elects tobe a qualifying corporation, it shall own any facility it is occupying in thestate;
(6) It shall state at the time it files its election to be aqualifying corporation that it intends to maintain its headquarters orprincipal office in the state of Rhode Island and that at least fifty percent(50%) of its full-time employees in North America will be based in the state ofRhode Island for at least ten (10) years; and
(7) During the year in which the corporation files itselection to be treated as a qualifying corporation and in the four (4) fiscalyears following that year, the number of Rhode Island based full-time employeesof the corporation has either increased on the average by at least fifteenpercent (15%) per annum over or in the aggregate has increased by at leastseventy-five percent (75%) the level of Rhode Island based full-time employeeson the first day of the fiscal year in which the election is filed. Theelection by a corporation to be treated as a qualifying corporation shallbecome effective for purposes of this section as of the first day of the fiscalyear during which the election is filed; provided, that in no event shall anelection be effective prior to January 1, 1993.
(d) For purposes of this section, if a corporation is amember of an "affiliated group" of corporations (as defined in 26 U.S.C. §1504(a)), it shall be considered to be the employer of the employees of theother members of that group. In the event a corporation fails to maintain therequired average annual rate of growth in Rhode Island based full-timeemployees during the year in which it files its election or in any of its four(4) succeeding fiscal years, or if it fails to thereafter retain the highestlevel of Rhode Island based full-time employees required under this section orotherwise fails to satisfy the requirements of this section, the corporationceases being a qualifying corporation, and no exclusion under this sectionapplies. As a condition to the acceptance of its election to be treated as aqualifying corporation, the corporation must agree that if it should fail tomeet the requirements in this section in the future that it will recapture andinclude in its Rhode Island tax liability an amount equal to one hundredpercent (100%) of the investment tax credits it claimed against its RhodeIsland business corporation tax liability during the prior ten (10) year period.
(e) The director of the Rhode Island economic developmentcorporation is authorized to promulgate regulations establishing standards foremployee recruitment and job training.
