It is enacted by the General Assembly as follows:

SECTION 1. Chapter 44-11 of the General Laws entitled "Business Corporation Tax" is hereby amended by adding thereto the following section:

{ADD 44-11-14.3. Credit card banks -- Allocation and apportionment of income. -- ADD} {ADD Notwithstanding any other provisions of the general laws, any banking institution whose business activities are taxable within and without this state and whose activities are limited to those described in section 2(c)(2)(F) of the Bank Holding Company Act (12 USC 1841 (c)(2)(F)) may elect the allocation and apportionment method for such taxpayer's net income provided for in this section. The election, if made, shall be irrevocable for successive periods of five (5) years. All net income derived directly or indirectly from such a banking institution shall be apportioned to Rhode Island only to the extent that customers of the taxpayer are domiciled in Rhode Island. The portion of net income apportioned to Rhode Island shall be determined by multiplying the total net income from the sale of such services by a fraction determined in the following manner:

(1) The numerator of the fraction shall be the income derived from accounts owned by customers domiciled in Rhode Island for such banking institution's taxable year; and

(2) The denominator of the fraction shall be income derived from accounts owned by all of the banking institution's customers for the same taxable year. ADD}

SECTION 2. This act shall take effect upon passage.