R.I. Gen. Laws § 44-11-14.1 — Certified facility apportionment exclusion

(a) In the event that the taxpayer has a Rhode Island facility which is both certified
and registered by the United States Food and Drug Administration (USFDA) and is considered
manufacturing as defined by the US Standard Industrial Classification Code(s)(SIC
Code) 283, and 384, the taxpayer may exclude from the allocation formula set forth
in § 44-11-14:
(1) From the numerator of the fraction set forth in § 44-11-14(a)(1), the amount, if any, by which the net book value of qualified property in the tax
year for which an exclusion is claimed under this section exceeds the net book value
of qualified property in the preceding tax year. For purposes of this section, “qualified
property” means real estate and tangible personal property used solely and exclusively
in all of the taxpayer’s certified Rhode Island facilities.
(2) From the numerator of the fraction set forth in § 44-11-14(a)(3), the amount, if any, by which total qualified payroll expenses of the taxpayer in
the tax year for which an exclusion is claimed under this section exceeds the total
qualified payroll expenses of the taxpayer in the immediately preceding tax year.
For purposes of this section, “qualified payroll” means the total amount of salaries,
wages and other compensation paid to employees and to officers, except officers who
have a direct or indirect ownership interest in the taxpayer in excess of five percent
(5%) or who are substantial creditors of the taxpayer, which is attributable solely
and exclusively to services performed in connection with the taxpayer’s activities
or transactions at all of the taxpayer’s certified Rhode Island facilities.
(b) In the event that a facility is certified during the taxpayer’s tax year or in the
event that a facility ceases to be certified during the taxpayer’s tax year, the taxpayer
shall prorate the amounts determined under subdivisions (a)(1) and (2) of this section.
(c) The taxpayer shall attach to the return for each tax year for which an exclusion is
claimed under this section detailed calculations substantiating each exclusion and
proof that the taxpayer has satisfied the conditions relating to registration and
certification by USFDA contained in this section.