§ 44-43-3 - Wage credit. - Rhode Island Statutes

SECTION 44-43-3

   § 44-43-3  Wage credit. – (a) There shall be allocated among the entrepreneurs of a qualifying businessentity (based on the ratio of each entrepreneur's interest in the entity to thetotal interest held by all entrepreneurs) with respect to each entity on anannual basis commencing with the calendar year in which the entity firstqualified as a qualifying business entity a credit against the tax imposed bychapter 30 of this title. The credit shall be equal to three percent (3%) ofthe wages (as defined in 26 U.S.C. § 3121(a)) in excess of fifty thousanddollars ($50,000) paid during each calendar year to employees of the entity;provided, that there shall be excluded from the amount on which the credit isbased any wages:

   (1) Paid to any owner of the entity;

   (2) Paid more than five (5) years after the entity commencedbusiness or five (5) years after the purchase of the business entity by newowners, whichever occurs later; or

   (3) Paid to employees who are not principally employed inRhode Island and whose wages are not subject to withholding pursuant to chapter30 of this title.

   (b) The credit authorized by this section shall cease in thetaxable year next following after the taxable year in which the average annualgross revenue of the business entity equals or exceeds one million five hundredthousand dollars ($1,500,000).