R.I. Gen. Laws § 44-3-44 — Qualifying stock options — Exemption

For purposes of determining the federal income tax liability of a taxpayer subject
to Rhode Island income tax, the Rhode Island income of the taxpayer under §§ 44-30-12 and 44-30-16 is determined by excluding any income, gain, or preference items resulting from the
sale, transfer, or exercise of qualified and nonqualified stock options, the stock
issued or transferred on the exercise of any such option, and warrants issued with
respect to such options and/or stock, of a qualifying corporation provided that the
taxpayer was a qualifying taxpayer and the taxpayer’s employer who issued the option
was a qualifying corporation at the time the taxpayer acquired a vested interest in
such option and exercised such option.