TITLE 44
Taxation

CHAPTER 44-11
Business Corporation Tax

SECTION 44-11-14.1


§ 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.

History of Section.
(P.L. 1992, ch. 257, § 1.)