§ 44-39.3-3 - Qualifying corporation. - Rhode Island Statutes

SECTION 44-39.3-3

   § 44-39.3-3  Qualifying corporation. –(a) A qualifying corporation is any corporation that:

   (1) Annually elects (in a manner that may be determined bythe tax administrator) to be a qualifying corporation;

   (2) Has at least ten (10) full-time equivalent activeemployees in this state; and

   (3) Is engaged principally in one or more of the businessactivities described in industry numbers 7371, 7372 and 7373 in the StandardIndustrial Classification, Office of the Statistical Standards, ExecutiveOffice of the President, United States Bureau of the Budget, as revised fromtime to time.

   (b) For purposes of this section, "full-time equivalentactive employee" means any employee who works a minimum of thirty (30) hoursper week in this state, or two (2) or more part-time employees whose combinedweekly hours equal or exceed thirty (30) hours per week in this state.

   (c) The annual election by a corporation to be treated as aqualifying corporation for a fiscal year shall become effective for purposes ofthis section as of the first day of the fiscal year for which the election isfiled and must be filed with the tax administrator on or before the due dateprescribed by law (including any extensions) for the filing of thecorporation's tax return with the tax administrator for that fiscal year;provided, that in no event shall an election be effective for fiscal yearscommencing prior to January 1, 1997, and in no event shall the exclusionavailable under the provisions of this chapter to be available to options thatwere issued prior to January 1, 1997.