§ 42-64.5-2 - Definitions.
SECTION 42-64.5-2
§ 42-64.5-2 Definitions. – As used in this chapter, unless the context clearly indicates otherwise:
(1) "Adjusted current employment" means, for any taxable yearending on or after July 1, 1995, the aggregate of the average daily number offull-time equivalent active employees employed within the State by an eligiblecompany and its eligible subsidiaries during each taxable year.
(2) "Affiliated entity" means any corporation owned orcontrolled by the same persons or shareholders who own or control an eligiblecompany.
(3) "Base employment" means, except as otherwise provided in§ 42-64.5-7, the aggregate number of full-time equivalent active employeesemployed within the State by an eligible company and its eligible subsidiarieson July 1, 1994, or at the election of the eligible company, on an alternativedate as provided by § 42-64.5-5. In the case of a manufacturing companywhich is ruined by disaster, the aggregate number of full-time equivalentactive employees employed at the destroyed facility would be zero, under whichcircumstance the base employment date shall be July 1 of the calendar year inwhich the disaster occurred. Only one base employment period can be elected forpurposes of a rate reduction by an eligible company.
(4) "Disaster" means an occurrence, natural or otherwise,which results in the destruction of sixty percent (60%) or more of an operatingmanufacturing business facility in this state, thereby making the production ofproducts by the eligible company impossible and as a result active employees ofthe facility are without employment in that facility. However, disaster doesnot include any damage resulting from the willful act of the owner(s) of themanufacturing business facility.
(5) "Eligible company" means any corporation, state bank,federal savings bank, trust company, national banking association, bank holdingcompany, loan and investment company, mutual savings bank, credit union,building and loan association, insurance company, investment company,broker-dealer company, manufacturing company, telecommunications company orsurety company or an eligible subsidiary of any of the foregoing. An eligiblecompany does not have to be in existence, be qualified to do business in thestate or have any employees in this state at the time its base employment isdetermined.
(6) "Eligible subsidiary" means each corporation eightypercent (80%) or more of the outstanding common stock of which is owned by aneligible company.
(7) "Full-time equivalent active employee" means any employeeof an eligible company who: (1) works a minimum of thirty (30) hours per weekwithin the State, or two (2) or more part-time employees whose combined weeklyhours equal or exceed thirty (30) hours per week within the State; and (2)earns no less than one hundred fifty percent (150%) of the hourly minimum wageprescribed by Rhode Island law; provided, however, for tax years ending afterthe later of July 1, 2003 and the first tax year that an eligible companyqualifies for a rate reduction pursuant to § 42-64.5-3, for purposes ofthis section, one hundred fifty percent (150%) of the hourly minimum wageprescribed by Rhode Island law shall mean one hundred fifty percent (150%) ofthe hourly minimum wage prescribed by Rhode Island law at: (a) the time theemployee was first treated as a full-time equivalent active employee during atax year that the eligible company qualified for a rate reduction pursuant to§ 42-64.5-3, or, if later, (b) the time the employee first earned at leastone hundred fifty percent (150%) of the hourly minimum wage prescribed by RhodeIsland law as an employee of the eligible company. For eligible companiesqualifying on or after July 1, 2009 for a rate reduction pursuant to §42-64.5-3, the term "full-time equivalent active employee" means any employeeof an eligible company who: (1) works a minimum of thirty (30) hours per weekwithin the state; (2) earns healthcare insurance benefits, and retirementbenefits; and (3) earns no less than two hundred fifty percent (250%) of thehourly minimum wage prescribed by Rhode Island law at the later of: (i) thetime the employee was first treated as a full-time equivalent active employeeduring a tax year that the eligible company qualified for a rate reductionpursuant to § 42-64.5-3; or (ii) the time the employee first earned atleast two hundred fifty percent (250%) of the hourly minimum wage prescribed byRhode Island law as an employee of the eligible company. For eligible companiesqualifying before July 1, 2009 for a rate reduction pursuant to §42-64.5-3, any new "full-time equivalent active employee", who replaces anexisting "full-time equivalent active employee", shall meet the followingstandards to remain eligible: (1) works a minimum of thirty (30) hours per weekwithin the state; (2) earns healthcare insurance benefits, and retirementbenefits; and (3) earns no less than two hundred fifty percent (250%) of thehourly minimum wage prescribed by Rhode Island law at the later of: (i) thetime the employee was first treated as a full-time equivalent active employeeduring a tax year that the eligible company qualified for a rate reductionpursuant to § 42-64.5-3; or (ii) the time the employee first earned atleast two hundred fifty percent (250%) of the hourly minimum wage prescribed byRhode Island law as an employee of the eligible company.
(8) "Initial new employment level" means the number of unitsof new employment reported by an eligible company in 1997, or, if applicable,the third taxable year following the base employment period election set forthin § 42-64.5-5.
(9) "New employment" means for each taxable year the amountof adjusted current employment for each taxable year minus the amount of baseemployment, but in no event less than zero; provided, however, no eligiblecompany is permitted to transfer, assign or hire employees who are alreadyemployed within the State by such eligible company from itself or anyaffiliated entity or utilize any other artifice or device for the purpose ofartificially creating new employees in order to qualify for the rate reductionprovided for in this chapter.
(ii) Except as provided in § 42-64.5-7, "new employment"shall not include employees already employed in this state who become employeesof an eligible company as a result of an acquisition of an existing company bypurchase, merger, or otherwise, if the existing company was eligible for a ratereduction. In the case of a manufacturing company that suffers a disaster, itshall mean any employment retained or added as the result of reconstruction ofthe manufacturing facility.
(10) "Rate reduction" means the reduction in tax ratespecified in § 42-64.5-4.
(11) "Small business concern" means, except as otherwiseprovided in § 42-64.5-7, any eligible company which has a base employmentlevel of less than one hundred (100); provided, however, that atelecommunications company may not qualify as a small business concern.
(12) "State" means the State of Rhode Island and ProvidencePlantations.
(13) "Telecommunications company" means any public servicecompany or corporation whose rate of taxation is determined under §44-13-4(4).
(14) "Total employment" for an eligible company as of anydate means the total number of full-time equivalent active employees employedwithin the State by the eligible company and its eligible subsidiaries on suchdate.
(15) "Units of new employment" means: (i) for eligiblecompanies which are not small business concerns, the amount of new employmentdivided by fifty (50), rounded down to the nearest multiple of fifty (50), and(ii) for eligible companies which are small business concerns the amount of newemployment divided by ten (10), rounded down to the nearest multiple of ten(10); provided, however, that an eligible company (other than an eligiblecompany that is a telecommunications company) with adjusted current employmentof one hundred (100) or more employees in its first year of operation or in anyother period following the date its base employment is determined shalldetermine its units of new employment by dividing the first one hundred (100)employees less its base employment by ten (10), rounded down to the nearestmultiple of ten (10), and by dividing the number of additional employees inexcess of one hundred (100) by fifty (50), rounded down to the nearest multipleof fifty (50).