280 R.I. Code R. 280-RICR-20-25-2.5

Current through November 21, 2024

Section 280-RICR-20-25-2.5 - Definitions

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).

280 R.I. Code R. 280-RICR-20-25-2.5