Current through September 18, 2024
A. "Adjusted current employment" means for
any taxable year ending on or after July 1, 1995, the aggregate of the average
daily number of full-time equivalent active employees employed within the state
by an eligible company and its eligible subsidiaries during such taxable
year.
B. "Affiliated entity" means
any corporation owned or controlled by the same persons or shareholders who own
or control an eligible company.
C.
"Average daily number or full time equivalent active employees within this
state" means a fraction of which the numerator is the sum of the number of full
time equivalent Employees for each business day and the denominator is the
number of business days.
D. "Base
employment" means the aggregate number of full-time equivalent active employees
employed within the State by an eligible company and its eligible subsidiaries
on July 1, 1994, or at the election of the eligible company, on July 1 of any
year subsequent to 1994; provided, however, that an eligible company that is a
telecommunication company shall determine its base employment on either July 1,
2001 or July 1, 2002; and provided, further, that an eligible company may not
use July 1, 2003 or any subsequent date to determine its base employment unless
a determination has been made by the board of directors of the Rhode Island
Economic Development Corporation that:
1. but
for the incentives available under the law the company is not likely to retain,
expand, or add employment in this state; and
2. that the company has provided reasonable
evidence supporting a finding that the jobs retained, expanded, or added will
generate new tax revenue for the state that is at least equivalent to the value
of this incentive.
E.
"Business days" means the number of days the employer is operating as a normal
day whereby all full time equivalent employees are eligible to work.
F. "Eligible subsidiary" means each
corporation 80% or more of the outstanding common stock of which is owned by an
eligible company.
G. "Eligible
company" means any corporation, state bank, federal savings bank, trust
company, national banking association, bank holding company, loan and
investment company, mutual savings bank, credit union, building and loan
association, insurance company, investment company, broker-dealer company or
surety company or an eligible subsidiary of any of the foregoing. An eligible
company does not have to be qualified to do business in the state or have any
employees in this state at the time its base employment is
determined.
H. "Full-time
equivalent active employees" means any employee of an eligible company who:
1. works a minimum of 30 hours per week
within the State, or two or more part-time employees whose combined weekly
hours equal or exceed 30 hours per week within the State and
2. earns no less than 150% of the hourly
minimum wage prescribed by Rhode Island law; provided, however, for tax years
ending after the later of July 1, 2003 and the first tax year that an eligible
company qualifies for a rate reduction pursuant to R.I. Gen. Laws §
42-64.5-3, for
purposes of this section, one hundred fifty percent (150%) of the hourly
minimum wage prescribed by Rhode Island law shall mean one hundred fifty
percent (150%) of the hourly minimum wage prescribed by Rhode Island law at
a. the time the employee was first treated as
a full-time equivalent active employee during a tax year that the eligible
company qualified for a rate reduction pursuant to R.I. Gen. Laws §
42-64.5-3, or,
if later
b. the time the employee
first earned at least one hundred fifty percent (150%) of the hourly minimum
wage prescribed by Rhode Island law as an employee of the eligible company. For
eligible companies qualifying on or after July 1 2009 for a rate reduction
pursuant to R.I. Gen. Laws §
42-64.5-3, the
term "full-time equivalent active employee" means any employee of an eligible
company who:
(1) works a minimum of thirty
(30) hours per week within the state;
(2) earns healthcare insurance benefits, and
retirement benefits; and
(3) earns
no less than two hundred fifty percent (250%) of the hourly minimum wage
prescribed by Rhode Island law at the later of:
(AA) the time the employee was first treated
as a full-time equivalent active employee during a tax year that the eligible
company qualified for a rate reduction pursuant to R.I. Gen. Laws §
42-64.5-3; or
(BB) the time the employee first
earned at least two hundred fifty percent (250%) of the hourly minimum wage
prescribed by Rhode Island law as an employee of the eligible company. For
eligible companies qualifying before July 1, 2009 for a rate reduction pursuant
to R.I. Gen. Laws §
42-64.5-3, any
new "full-time equivalent active employee", who replaces an existing "full-time
equivalent active employee", shall meet the following standards to remain
eligible:
(i) works a minimum of thirty (30)
hours per week within the state;
(ii) earns healthcare insurance benefits, and
retirement benefits; and
(iii)
earns no less than two hundred fifty percent (250%) of the hourly minimum wage
prescribed by Rhode Island law at the later of the time the employee was first
treated as a full-time equivalent active employee during a tax year that the
eligible company qualified for a rate reduction pursuant to R.I. Gen. Laws
§
42-64.5-3, or
the time the employee first earned at least two hundred fifty percent (250%) of
the hourly minimum wage prescribed by Rode Island law as an employee if the
eligible company
I. "New employment" means for each
taxable year the amount of adjusted current employment for such taxable year
minus the amount of base employment, but in no event less than zero, provided
however, no eligible company is permitted to transfer, assign or hire employees
who are already employed within the State by such eligible company from itself
or any affiliated entity or utilize any other artifice or device for the
purpose of artificially creating new employees in order to qualify for the rate
reduction provided for in this chapter. New employment shall not include
employees already employed in this state who become employees of an eligible
company as a result of an acquisition of an existing company by purchase,
merger, or otherwise, if the existing company was eligible for a rate
reduction.
J. "Small business
concern" means any eligible company, which has a base employment level of less
than one hundred (100); provided, however, that a telecommunication company may
not qualify as a small business concern.
K. "Telecommunications company" means any
public service company or corporation whose rate of taxation is determined
under R.I. Gen. Laws §
44-13-4(4).
L. "Units of new employment" means
1. for eligible companies, which are not
small business concerns, the amount of new employment divided by fifty (50)
rounded down to the nearest multiple of fifty (50), and
2. for eligible companies which are small
business concerns, the amount of new employment divided by ten (10), rounded
down to the nearest multiple of ten (10); provided, however, that an eligible
company (other than an eligible company that is a telecommunications company)
with adjusted current employment of one hundred (100) or more employees in its
first year of operation or in any other period following the date its base
employment is determined shall determine its units f new employment by dividing
the first one hundred (100) employees less its base employment by ten (10),
rounded down to the nearest multiple of ten (10), and by dividing the number of
additional employees in excess of one hundred (100) by fifty (50), rounded down
to the nearest multiple of fifty (50).
