TITLE 42
State Affairs and Government
CHAPTER 42-64.11
Jobs Growth Act
SECTION 42-64.11-2
§ 42-64.11-2 Definitions.
As used in this chapter, unless the context clearly indicates otherwise:
(a) "Average annual current employment" means, for any test
period, the average daily number of full-time equivalent active employees
employed within the state by an eligible company and it affiliated entities.
(b) "Affiliated entity" of an eligible company means any
partnership, limited liability company, trust or corporation having employees
in the state: (i) if the eligible corporation owns at least fifty percent (50%)
of the value of the ownership interests therein; (ii) that owns at least fifty
percent (50%) of the value of the interests in the eligible company; or (iii)
that is under common ownership (at the fifty percent (50%) level) with the
eligible company. For this purpose, direct, indirect, beneficial or
constructive ownership shall be considered ownership.
(c) "Average compensation of all employees in the state" for
any test period means the sum of the average quarter wages for total private
and government as published by the labor market information division of the
department of labor and training for the four (4) quarters ending with the
second quarter of the calendar year ending one year before the end of the test
period.
(d) "Base employment" means the average daily number of
full-time active employees employed within the state by an eligible company and
its affiliated entities for the calendar year preceding the calendar year in
which the eligible company makes an initial application to be a certified
company as provided in § 42-64.11-3.
(e) "Certified company" means a provisionally-certified
company or a fully certified company.
(f) "Compensation" means any income, capital gain or
preference items realized by an employee in connection with the employee's
service for an eligible company or affiliated entity provided that such
compensation would (but for the modification provided by § 42-64.11-4) be
includible in gross income or alternative minimum income for purposes of the
Rhode Island personal income tax.
(g) "Credit year" means any calendar year for which an
eligible company has been certified under § 42-64.11-3.
(h) "De minimis services" means services performed by an
employee in the state which does not aggregate more than two percent (2%) of
the total services (based on hours or days of employment) performed by the
employee for an eligible company and all of its affiliated entities during a
calendar year or shorter relevant period.
(i) "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, manufacturing company, telecommunications company or
surety company or an affiliated entity of any of the foregoing. An eligible
company does not have to be in existence, be qualified to do business in the
state or have any employees in this state at the time its base employment is
determined.
(j) "Eligible employee" means any full-time active employee
having compensation at least equal to one hundred twenty-five percent (125%) of
the average compensation of all employees in the state first performing
services in the state for an eligible company or an affiliate entity after the
date the eligible company files its initial application for certification;
provided, however, that for any eligible company filing its initial application
in 2005, "eligible employee" means any full-time active employee having
compensation at least equal to one hundred-twenty five percent (125%) of the
average compensation of all employees in the state first performing services in
the state after June 1, 2005. An employee shall be considered as first
performing services in the state on a date but only if the employee performs
services in the state on such date, but did not previously during that calendar
year or the immediately preceding calendar-year perform services (other than de
minimis services) in the state as an employee of the eligible company or any
affiliated entity. A fully certified company may elect to treat as eligible
employees all employees in the state without regard to the date they first
performed services in the state.
(k) "Full-time active employee" means any employee of an
eligible company or an affiliate entity who works a minimum of thirty (30)
hours per week within the state, with benefits typical to the industry of the
employer.
(l) "Fully-certified company" means an eligible company that
has been certified by the Rhode Island economic development corporation as
meeting the criteria set forth in subsection 42-64.11-3(e) for not less than
three (3) consecutive years.
(m) "New employment" for each test period (for an eligible
company seeking qualification as a provisionally-certified company) or credit
year (for a fully-certified company) means the amount of average annual current
employment for the test period or credit year (as the case may be) 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 eligible employees in order to become a certified company.
(n) "New employment payroll" means the total compensation
paid by an employer that is a certified company and its affiliated entities
times a fraction, the numerator of which is its new employment and the
denominator is its total number of full-time active employees.
(o) "Performance-based compensation" means any compensation
paid by a certified company to an eligible employee in consideration of the
achievement of individual or company performance-based goals, including, for
example, but without limitation, bonuses, and income derived from
employer-granted stock options. Performance-based compensation does not include
regular fixed periodic compensation, overtime pay, and fringe benefits
(including distributions from qualified retirement plans) or other compensation
paid on the basis of time or longevity and without regard to goal-based
performance.
(p) "Provisionally-certified company" means any company that
has been certified under § 42-64.11-3 for fewer than three (3) consecutive
years.
(q) "State" means the State of Rhode Island and Providence
Plantations.
(r) "Test period" means, at the election of an eligible
company as indicated in an updated application under subsection 42-64.11-3(b),
either the calendar-year period last ending before the filing of that updated
application or the two (2) calendar-year period last ending before the filing
of that updated application.
History of Section.
(P.L. 2005, ch. 53, § 1; P.L. 2005, ch. 54, § 1.)