State Affairs and Government
The I-195 Redevelopment Act of 2011
§ 42-64.14-4 Definitions.
As used in this chapter, unless the context clearly indicates otherwise:
(1) "Adjusted current employment" means, for any taxable year
ending on or after January 1, 2012, the aggregate of the average daily number
of full-time equivalent active employees employed within the state by an
eligible company and its eligible subsidiaries during each taxable year.
(2) "Affiliated entity" means any corporation or other
business entity owned or controlled by the same persons or shareholders or
equity holders who own or control an eligible company.
(3) "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 § 42-64.14-12. In the case of a
manufacturing company which is ruined by disaster, the aggregate number of
full-time equivalent active employees employed at the destroyed facility would
be zero, under which circumstance the base employment date shall be January 1
of the calendar year in which the disaster occurred. Only one base employment
period can be elected for purposes of a rate reduction by an eligible life
(4) "Disaster" means an occurrence, natural or otherwise,
which results in the destruction of sixty percent (60%) or more of an operating
manufacturing business facility in this state, thereby making the production of
products by the eligible life sciences company impossible and as a result
active employees of the facility are without employment in that facility.
However, disaster does not include any damage resulting from the willful act of
the owner(s) of the manufacturing business facility.
(5) "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.
(6) "Eligible life sciences subsidiary" means each life
sciences corporation eighty percent (80%) or more of the outstanding equity
securities of which is owned by an eligible life sciences company.
(7) "Full-time equivalent active employee" means any employee
of an eligible life sciences company who:
(i) Works a minimum of thirty (30) hours per week within the
state, or two (2) or more part-time employees whose combined weekly hours equal
or exceed thirty (30) hours per week within the state; and
(ii) Earns no less than two hundred fifty percent (250%) of
the hourly minimum wage prescribed by Rhode Island law; provided that the first
tax year that an eligible life sciences company qualifies for a rate reduction
pursuant to § 42-64.14-10, for purposes of this section, two hundred fifty
percent (250%) of the hourly minimum wage prescribed by Rhode Island law shall
(A) The time the employee was first treated as a full-time
equivalent active employee during a tax year that the eligible life sciences
company qualified for a rate reduction pursuant to § 42-64.14-10; or, if
(B) The time the employee first earned at least two hundred
fifty percent (250%) of the hourly minimum wage prescribed by Rhode Island law
as an employee of the eligible life sciences company.
(8) "Initial new employment level" means the number of units
of new employment reported by an eligible life sciences company in 2012, or, if
applicable, the third (3rd) taxable year following the base employment period
election set forth in § 42-64.14-12.
(9) "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. 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.
(10) "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.
New employment shall not include employees already employed
in this state who become employees of an eligible life sciences company as a
result of an acquisition of an existing company by purchase, merger, or
otherwise, if the existing company was eligible for a rate reduction. In the
case of a manufacturing company that suffers a disaster, it shall mean any
employment retained or added as the result of reconstruction of the
(11) "Rate reduction" means the reduction in tax rate
specified in § 42-64.14-11.
(12) "Small business concern" means any eligible life
sciences company which has a base employment level of less than one hundred
(13) "State" means the State of Rhode Island and Providence
(14) "Total employment" for an eligible life sciences company
as of any date means the total number of full-time equivalent active employees
employed within the state by the eligible life sciences company and its
eligible life sciences subsidiaries on such date.
(15) "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).
History of Section.
(P.L. 2011, ch. 245, § 3; P.L. 2011, ch. 267, § 3.)