(a) A taxpayer or entrepreneur which has been allowed a deduction or modification in accordance with § 44-43-2 is required to recapture all the deductions or modifications taken in any taxable year:
(1) In which the taxpayer or entrepreneur sells or exchanges or there is a reduction in his or her interest in a qualifying business entity; or
(2) In which there is a reduction in the taxpayer’s interest in a qualifying investment in a certified venture capital partnership.
(b) Any recapture shall be limited to the proceeds resulting from the reduction in subsection(a) of this section. There shall be no recapture as the result of or following the death of any entrepreneur or taxpayer. There shall be no recapture with respect to any investment held by an entrepreneur or taxpayer for at least five (5) years.