R.I. Gen. Laws § 44-3-46 — “Qualifying corporation” and “full-time equivalent active employee” defined

(a) A “qualifying corporation” is any corporation that:
(1) Annually elects (in a manner that may be determined by the tax administrator) to be
a qualifying corporation;
(2) Has at least ten (10) full-time equivalent active employees in this state; and
(3) Is principally engaged in one or more of the business activities described in industry
numbers 7371, 7372 and 7373 in the Standard Industrial Classification, Office of the
Statistical Standards, Executive Office of the President, United States Bureau of
the Budget, as revised from time to time.
(b) For purposes of this section, “full-time equivalent active employee” means any employee
who works a minimum of thirty (30) hours per week in this state, or two (2) or more
part-time employees whose combined weekly hours equal or exceed thirty (30) hours
per week in this state.
(c) The annual election by a corporation to be treated as a qualifying corporation for
a fiscal year becomes effective for purposes of this section as of the first day of
the fiscal year for which the election is filed and must be filed with the tax administrator
on or before the due date prescribed by law (including any extensions) for the filing
of the corporation’s tax return with the tax administrator for the fiscal year. In
no event shall an election be effective for fiscal years commencing prior to January
1, 1997, and in no event shall the exclusion available under the provisions of this
chapter be available to options that were issued prior to January 1, 1997.