Enacts new GS 105-130.49 to establish a credit for veteran pay under Article 4, Part 1 (Corporation Income Tax). Establishes that a taxpayer that is a small business that employs a qualifying veteran and pays the veteran a qualifying wage is eligible for a credit against the corporate income tax. Defines a qualifying veteran as a veteran of any branch of the US Armed Forces whose character of service at separation was honorable or under honorable conditions, and who has not been convicted of a felony offense or who has been convicted of one or more felonies but each conviction has been expunged. Defines a qualifying wage as an hourly of $12 or higher. Defines a small business as a business with annual receipts, combined with the annual receipts of all related persons, for the applicable period of measurement which did not exceed $1 million and with 12 or fewer employees working an average of 32 hours or more per week.
Establishes that the amount of the credit is equal to the number of hours for which all qualifying veterans are paid a qualifying wage by the taxpayer multiplied by $1.90. Establishes that the credit allowed under this section may not exceed the amount of tax imposed by Part 1 for the taxable year reduced by the sum of all credits allowable, except tax payments made by or on behalf of the taxpayer, or be taken by a taxpayer for hours worked by a qualifying veteran after the qualifying veteran has been employed by the taxpayer for more than one year.
Directs that any unused portion of a credit allowed in the statute may be carried forward for the succeeding five years, and that a successor in business may take the carryforwards of a predecessor corporation as if they were carryforwards of a credit allowed to the successor in business.
Requires the Department of Revenue to annually report to the Revenue Laws Study Committee the number of employees claiming a credit under the statute, the number of veterans for whom a credit is claimed, and the total amount of the credit claimed.
Provides a sunset provision that repeals the statute effective for taxable years beginning on or after January 1, 2019.
Enacts a new GS 105-151.34 to establish a tax credit for veteran pay under Article 4, Part 2 (Individual Income Tax). Enacts identical subsections (a) through (f) as those found in GS 105-130.49, as described above.
Effective for taxes imposed for taxable years beginning on or after January 1, 2017, and for qualifying veterans hired on or after that date.
Bill H 1108 (2015-2016)Summary date: May 10 2016 - View summary