§ 44-11-11.3 - Accelerated amortization deductions for certain manufacturers.
SECTION 44-11-11.3
§ 44-11-11.3 Accelerated amortizationdeductions for certain manufacturers. – (a) Any taxpayer engaged in manufacturing activities in Rhode Island that hason the average over the five (5) previous years annually produced goods atfacilities located in Rhode Island which generate net sales of at least tenmillion dollars ($10,000,000) and where on the average at least eighty percent(80%) of that production has been for eventual sale to a branch of the UnitedStates armed services may, if it represents that it anticipates the need toreduce its reliance on the sales, elect to amortize the unrecovered basis ofall or a portion of its depreciable assets over a sixty (60) month period inequal monthly installments. This election shall be effective as of the firstday of the fiscal year of the taxpayer in which the election is made and shallapply only to assets located in this state as of the effective date of theelection. In the event any asset covered by this election is sold or disposedof during the sixty (60) month period following the effective date of theelection, or if the asset is transferred to another location outside of RhodeIsland and is not replaced at a location in this state by an asset of at leastequal value and with a similar function, all deductions claimed with respect tothe property under this section shall be immediately included in the taxpayer'sincome for Rhode Island income tax purposes in the year of the sale,disposition, or transfer.
(b) If in any year during the five (5) year period followingthe effective date of the election, the average annual level of its full-timeemployees in this state drops below one thousand (1,000), the company shallrecapture twenty percent (20%) of any benefit resulting from the election foreach decrease of one hundred (100) full-time employees below the level up to amaximum of one hundred percent (100%) of the benefit.