§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, officer, or director, or investor who qualifies for the credit under section 235-110.9, that would otherwise be taxed as ordinary income or as capital gains to those persons is exempt from taxation under this chapter.(b) For the purposes of this section:
"Qualified high technology business" means a business conducting more than fifty per cent of its activities in 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, 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) The development and design of computer software using fourth generation or higher software development tools or native programming languages to design and construct unique and specific code to create applications and design databases for sale or license; or
(3) Biotechnology. [L 1999, c 178, §20; am L 2000, c 297, §7]