(a)  The amount of the rate reduction specified in § 42-64.14-10 for any eligible life sciences company for each taxable year beginning on or after January 1, 2012, shall be based upon the aggregate amount of new employment of the eligible life sciences company and its eligible subsidiaries for each taxable year, and shall be determined by multiplying the numerical equivalent of one-quarter of one percent (.25%) by the number of units of new employment for each taxable year through the taxable year ending in 2014 or, if applicable, the third taxable year following the base employment period election set forth in § 42-64.14-12; and for each taxable year thereafter, the number of units of new employment reported for the taxable year 2014 or, if applicable, the third taxable year following the base employment period election set forth in § 42-64.14-12; provided, however, the amount of each rate reduction shall in no event be greater than six percent (6%).

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Terms Used In Rhode Island General Laws 42-64.14-11

  • Base employment: means the aggregate number of full-time equivalent active employees employed within the state by an eligible life sciences company and its eligible life sciences subsidiaries on January 1, 2011, or at the election of the eligible life sciences company, on an alternative date as provided by §?42-64. See Rhode Island General Laws 42-64.14-4
  • Eligible life sciences company: means a business corporation, partnership, firm, unincorporated association or other entity engaged in life sciences research, development, manufacturing or commercialization in the state, as further defined in this section, and any affiliate thereof, which is, or the members of which are, subject to taxation. See Rhode Island General Laws 42-64.14-4
  • Life sciences: means in advanced and applied sciences that expand the understanding of human physiology and have the potential to lead to medical advances or therapeutic applications including, but not limited to, agricultural biotechnology, biogenerics, bioinformatics, biomedical engineering, biopharmaceuticals, biotechnology, chemical synthesis, chemistry technology, diagnostics, genomics, image analysis, marine biology, marine technology, medical devices, nanotechnology, natural product pharmaceuticals, proteomics, regenerative medicine, RNA interference, stem cell research, veterinary science or computer and information technology. See Rhode Island General Laws 42-64.14-4
  • New employment: means for each taxable year the amount of adjusted current employment for each taxable year minus the amount of base employment, but in no event less than zero (0); 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. See Rhode Island General Laws 42-64.14-4
  • Rate reduction: means the reduction in tax rate specified in §?42-64. See Rhode Island General Laws 42-64.14-4
  • Units of new employment: means :

    (i)  For eligible life sciences companies which are not small business concerns, the number of full-time equivalent active employees divided by fifty (50), rounded down to the nearest multiple of fifty (50); and

    (ii)  For eligible life sciences 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 life sciences 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 of 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). See Rhode Island General Laws 42-64.14-4

(b)  For tax years beginning on or after January 1, 2015, the amount of the rate reduction specified in § 42-64.14-10 for any eligible company required to file and pay taxes pursuant to § 44-11-2, shall be based upon the aggregate amount of new employment of the eligible company and its eligible subsidiaries for each taxable year, and shall be determined by multiplying the numerical equivalent of two tenths of one percent (.20%) by the number of units of new employment for each taxable year through the taxable year ending in 1997 or, if applicable, the third taxable year following the base employment period election set forth in § 42-64.14-12; and for each taxable year thereafter, the number of units of new employment reported for the taxable year 1997 or, if applicable, the third taxable year following the base employment period election set forth in § 42-64.14-12; provided, however, the amount of each rate reduction shall in no event be greater than four percent (4.0%).

History of Section.
P.L. 2011, ch. 245, § 3; P.L. 2011, ch. 267, § 3; P.L. 2014, ch. 145, art. 12, § 14.