R.I. Gen. Laws § 44-39.3-3 — Qualifying corporation

(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 engaged principally 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 shall become 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 that
fiscal year; provided, that 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 to be available to options that were issued prior
to January 1, 1997.