Section 870-RICR-30-00-7.5 - Qualifying Business Entity (QBE)A. As defined by R.I. Gen. Laws Chapter 44-43, the following criteria will determine eligibility under the provisions of the Chapter.1. Eligibilitya. Any corporation, partnership or other business entity or predecessor and successors of any such corporation, partnership or other business entity which meets all of the following criteria.2. Average Annual Gross Revenue of less than two million five hundred thousand dollars ($2,500,000). Average gross revenue shall mean the simple average of the amounts received or accrued by a qualifying business entity determined on an annualized basis from the sale of goods or services prior to diminution by the cost of such sale or services; provided, however that such determination shall be limited to amounts, if any, received or accrued during the four (4) taxable years of such business entity or such lesser period as may be applicable, for the period immediately preceding the taxable year during which entity applied to the RI Commerce Corporation for certification or recertification.3. Evidence of Revenue a. The business entity will submit certified, audited financial statements, or fully signed copies of Internal Revenue Service forms: 1040 and attachments, 1065 and attachments, Form 1120 or 1120-A or 1120S and attachments for the applicable years. Gross revenue and average annual gross revenue are defined under § 7.5(A)(2) of this Part.4. Operation of Business a. Such entity, predecessor successor shall have been in operation for less than four years prior to the time of application for certification or recertification.5. Investments a. The business investment will be the amount expended to establish, expand or increase its operation at a regular place of business in Rhode Island, or to purchase the interest of one or more prior owners of such entity; provided, however, that in the case of a purchase of the interest, such entity shall have entered into binding commitments to expend an amount not less than the amount paid to establish, expand or increase such entity's operations at a regular place of business in Rhode Island. The amounts expended by the business entity will be amounts which are not less than the amounts allowed as a deduction as a qualifying investments for the following purposes:(1) A deduction for purposes of computing net income or net worth in accordance with R.I. Gen. Laws Chapter 44-11.(2) A deduction from gross earnings for purposes of computing the public service corporation tax in accordance with R.I. Gen. Laws Chapter 44-13.(3) A deduction for the purpose of computing net income in accordance with R.I. Gen. Laws Chapter 44-14.(4) A deduction for the purpose of computing gross premiums in accordance with R.I. Gen. Laws Chapter 44-17.(5) A modification reducing federal adjusted gross income in accordance with R.I. Gen. Laws Chapter 44-30.6. Certification/Recertificationa. The business entity has received certification or recertification from Rhode Island Commerce Corporation. The initial certification by the RI Commerce Corporation shall expire on the date which is the end of the entity's business year for tax purposes. Recertification shall be for a period of 12 months commencing with the prior certification's expiration date.870 R.I. Code R. 870-RICR-30-00-7.5