[§235-9.5] Stock options from qualified high technology businesses exempt from taxation.
(a) Notwithstanding any law to the contrary, all income received from stock options from a qualified high technology business by an employee that would otherwise be taxed as ordinary income or as capital gains to those employees is exempt from taxation under this chapter.(b) For the purposes of this section:
"Computer software" means a set of computer programs, procedures, or associated documentation concerned with the operation and function of a computer system, and includes both systems and application programs and subdivisions, such as assemblers, compilers, routines, generators, and utility programs.
"Qualified high technology business" means a business performing qualified research. The term "qualified high technology business" does not include:
(1) Any trade or business involving the performance of services in the field of law, architecture, accounting, actuarial science, performing arts, consulting, athletics, financial services, or brokerage services;
(2) Any banking, insurance, financing, leasing, rental, investing, or similar business; any farming business, including the business of raising or harvesting trees; any business involving the production or extraction of products of a character with respect to which a deduction is allowable under section 611 (with respect to allowance of deduction for depletion), 613 (with respect to basis for percentage depletion), or 613A (with respect to limitation on percentage depleting in cases of oil and gas wells) of the Internal Revenue Code;
(3) Any business operating a hotel, motel, restaurant, or similar business; and
(4) Any trade or business involving a hospital, a private office of a licensed health care professional, a group practice of licensed health care professionals, or a nursing home.
"Qualified research" means:
(1) The same as in section 41(d) of the Internal Revenue Code; or
(2) Developing, designing, modifying, programming, and licensing computer software. [L 1999, c 178, §20]