Conference report deletes the contents of the 6th edition and now replaces it with the following.
Part I. General Provisions
Amends Section 2.1 of SL 2021-180, making adjustments to the total operational requirements and receipts listed in the 2021-22 schedule for the UNC Board of Governors, Aid to Private Institutions; Health and Human Services, Child Development and Early Education, Social Services; Agriculture, Natural, and Economic Resources, Commerce; General Government, Budget and Management. Makes conforming changes to the total requirements, receipts and appropriation.
Amends Sections 2.2 of SL 2021-180 to replace the General Fund availability statement with the statement provided.
Amends Section 3.4 of SL 2021-180 to refer to the actual over collections, rather than the projected over collections, in the Highway Trust Fund availability statement.
Amends Section 5.9 of SL 2021-180, expanding the permitted uses of the $10 million allocated to the State Match Fund, established therein, to include State match requirements for FEMA disaster preparedness programs. Makes conforming changes.
Amends Section 5.9B of SL 2021-180 to authorize the Department of Agriculture and Consumer Services (DACS) to use up to 3% of funds allocated for the Agricultural Crop Loss Program for administrative purposes (previously, DACS was barred from using any allocated funds for the Program for administrative purposes). Expands eligibility under the Program to include experiencing verifiable damages to farm infrastructure on a farm in a listed county as a result of Tropical Storm Fred. Defines farm infrastructure to include fencing, greenhouses, barns, equipment, and farm roads or other structures or site improvements used for farming purposes. Now requires agricultural commodity loss verification forms to be submitted by May 1, 2022 (was, December 10, 2021), with authority for DACS to extend the deadline for certain crops until October 1, 2022 (was, May 1, 2022), upon written request received on or before May 1, 2022 (was, December 10, 2021). Now requires livestock or poultry loss documentation to be submitted by May 1, 2022 (was, December 10, 2021), with authority for DACS to extend the deadline to October 1, 2022 (was, March 1, 2022) upon written request received on or before May 1, 2022 (was, December 10, 2021). Makes conforming changes. Adds a new directive for DACS to develop a formula to determine the payment calculation for farm infrastructure damages or loss using measure DACS deems appropriate. Directs DACS to consider any other available insurance claims that may be available to the applicant when developing the formula.
Adds new Section 5.17 to SL 2021-180, mandating local government contracting for design-build services using federal funds subject to the procurement standards set forth in specified federal regulation comply with either (1) GS 143-128.1A in its entirety and all applicable federal requirements relating to the use of federal funds, or (2) specified subsection of GS 143-128.1A, with further uncodified criteria regarding public notice requirements, multiple solicitations when less than three responses for design-builders are received, and required selection procedures. Makes the Section's provisions expire on December 31, 2025, with a savings clause for design-build contracts executed prior to that date so long as the contract is executed pursuant to the Section's provisions.
Adds new Section 5.18 to SL 2021-180, allowing State Agencies with positions identified for elimination in the act or in the Committee Report that were filled as of November 18, 2021, to substitute vacant positions for elimination so long as the substituting positions meet the total dollar amount of the position reductions and at least the total number of positions eliminated.
Part II. Education
Adds new Section 6.16 to SL 2021-180, providing for $212,318 in recurring funds appropriated for each year of the biennium from the State Capital and Infrastructure Fund to the Community Colleges System Office for two positions to assist in the management of capital projects to instead be provided to Fund Code 1300, Finance Division Fund, rather than Fund Code 1100, Executive Division.
Amends Section 3.5 of SL 2021-25, as amended by Section 7.27 of SL 2021-180, to provide for the specified funds to be used to contract with the State Auditor to perform analyses on attendance and truancy policies and procedures from the 2020-21 school year (was, the 2021-22 school year) of specified administrative units.
Amends Section 8.10 of SL 2021-180 to increase the funds allocated to UNC-Chapel Hill for the Collaboratory from $12.75 million to $14.15 million.
Amends Section 8.12 of SL 2021-180 to modify eligibility criteria for business entities to receive convergent science grants from the Collaboratory to allow businesses to have their principal office in the State as an alternative to being organized in the State.
Corrects a statutory cross-reference in Section 8A.3(u) of SL 2021-180.
Repeals Section 8A.9 to SL 2021-180, which allocated a portions of the funds appropriated to the UNC Board of Governors to be allocated to the State Education Assistance Authority (Authority) to provide funds to eligible private postsecondary institutions for response to the pandemic.
Directs the UNC Board of Governors and the UNC President to study the feasibility and advisability of establishing a new academic program and schools in the areas of health science at UNC Pembroke. Requires the study to be completed no later than the date the new health sciences building at UNC Pembroke opens for classes. Details required and permitted considerations. Allows for consultation with the UNC Pembroke Board of Trustees.
Part III. Health and Human Services
Amends Section 9E.6 of SL 2021-180, regarding a pilot program to evaluate the effectiveness of an accreditation process for adult care homes to deem them eligible for ongoing licensure and exempt them from routine inspections if they meet required standards and requirements. Adds that under the pilot, the Department of Health and Human Services (DHHS) is entitled to access, upon request, of unredacted records maintained by the Pilot Program Accrediting Body related to surveys conducted, and deidentified data related to quality outcome measures collected or generated by the Cecil G. Sheps Center for Health and Services Research, UNC-CH. Adds a representative of Disability Rights North Carolina to those who must be included in the Stakeholder Advisory Group under the pilot. Now requires the Pilot Program Accrediting Body to provide to DHHS a monthly survey schedule as described. Replaces the categories and types of information that must be included in the quarterly reports from participating facilities to now include: (1) workforce, including staffing level, turnover rates, consistent assignment, quality of life, and satisfaction; (2) resident outcomes, including physical function and psychosocial well-being and satisfaction; (3) care coordination and transitions, including resident/family preferences and resident/family understanding, advance directives, discharge due to behaviors, emergency department visits, and hospitalization; (4) medication management, including performing medication reviews and reducing medication errors; and (5) person-centered care, including well-being and belonging, individualized care and services, social connectedness, and home-like atmosphere. Replaces the criteria the Shep Center must include in developing a recommended list of criteria, data collection, and methodology necessary for measuring care and resident outcomes in adult care homes to now include those that mirror the new categories and types of information included in facility quarterly reporting under the pilot.
Amends GS 131D-4.4A, as amended by Section 9E.7 of SL 2021-180, which details adult care home infection prevention requirements. Redefines adult care home staff as any employee of an adult care home (was, those involved in direct resident care). Requires adult care homes to implement infection prevention and control policies and procedures consistent with the federal Centers for Disease Control and Prevention guidelines on infection control. Requires the policies and procedures to comply with public health laws of the State. Adds that policies and procedures must ensure that residents, their representatives, and adult care home staff are informed of the following without disclosing any personally identifiable information of the facility's residents or staff: (1) the existence of a communicable disease outbreak within 24 hours following confirmation of the outbreak by the local health department; (2) when the communicable disease outbreak has resolved; and (3) any changes to facility operations during the communicable disease outbreak, such as visitation policy changes. Requires adult care homes to update the infection prevention and control policies and procedures as necessary to remain consistent with accepted national standards in infection prevention and control (was, consistent with the guidelines included in the course developed by DHHS under GS 131D-4.5C). Makes further technical and conforming changes.
Amends GS 131D-4.5C, adding a new directive for DHHS to develop model infection prevention and control policies and procedures that are consistent with accepted national standards and address the factors identified in GS 131D-4.4A(b)(1), and make the model policies and procedures available to adult care homes on its website. Now requires DHHS to develop a mandatory annual course for adult care home supervisors on implementation of model infection prevention and control policies and procedures developed by DHHS (was, a mandatory annual course on federal CDC guidelines on infection control). Effective January 1, 2022. Requires DHHS to develop and post to its website the model prevention and control policies, and develop the mandatory, annual course for adult care home supervisors, by January 1, 2022.
Amends Section 9G.4 of SL 2021-180, to refer to Care Net, a national network of independent pregnancy centers (was, CareNet, Inc., a nonprofit corporation).
Amends Section 9L.1 of SL 2021-180, making organizational changes to the schedule for federal Block Grants for the fiscal biennium. Increases the appropriations made for 2021-22 for Community Action Agencies from the Community Services Block Grant to $22,158,403 (was, $20,916,673). Makes conforming adjustment to the total Community Services Block Grant appropriations. Adds that upon approval by the Office of State Budget and Management (OSBM) and the State Chief Information Officer in the Enterprise Project Management Office's Touchdown System of a centralized system for performance data for the Community Services Block Grant Program and the Weather Assistance Program, up to $166,750 in Low Income Energy Assistance funds can be budgeted for transfer to budget code 24410 for information technology projects for 2022-23.
Part IV. Agriculture and Natural and Economic Resources
Amends Section 11.11 of SL 2021-180 to provide for allocations of funds appropriated to the Department of Commerce to contract with a nonprofit for purposes of travel and tourism marketing, and business marketing, of the State (was, in the State).
Amends Section 11.11A, which establishes the North Carolina Rural Tourism Recovery Pilot Program. Changes the beginning date of the Program to March 1, 2022 (was, January 15, 2022). Postpones the initial reporting requirement of the Department of Commerce on the Program to April 1, 2022 (was, March 1, 2022).
Amends GS 143B-437.02B, as enacted by Section 11.13 of SL 2021-180, which creates the Esports Industry Grant Fund to provide grants to encourage esports events in the State. Changes the grant parameters to now reserve the funds for a production for which a production company has qualifying expenses of at least $150,000 (was, $250,000) with respect to a single production. Adds new authority for the Department of Commerce to use up to 3% of the funds appropriated to the Grant Fund each fiscal year for associated administrative costs, including up to two full-time equivalent positions or to contract with a third party to administer the program.
Amends Section 11.14 of SL 2021-180 to provide that the allocations provided for projects related to the Rockingham Speedway, the North Wilkesboro Speedway, and the Charlotte Motor Speedway, totaling $40 million for 2021-22, are of appropriations from the State Fiscal Recovery Fund to the Department of Commerce (was, the Office of State Budget and Management). Similarly, provides that $5 million of the funds appropriated from the State Fiscal Recovery Fund to the Department of Commerce (was, the Office of State Budget and Management) is to be used to provide grants to local government to enhance amenities and increase opportunities for events at motorsport venues. Changes grant eligibility to include being sanctioned at any time on or after January 1, 2010, by NASCAR, the National Hot Rod Association, or the International Hot Rod Association (previously, required being presently sanctioned by one of the named associations), or having hosted a NASCAR Cup Series race on or after September 29, 1996. Additionally, provides that $1 million of the funds appropriated from the State Fiscal Recovery Fund to the Department of Commerce (was, the Office of State Budget and Management) is to be used to provide grants to local governments for small motorsports venues.
Adds new Section 11.20 to SL 2021-180, providing that of the funds appropriated to the Department of Commerce for 2021-22, $106.75 million is to be used for improvements at the Piedmont Triad International Airport, dependent on the Economic Investment Committee awarding a Jobs Development Investment Grant (JDIG) for a high-yield project for an airplane manufacturer in Guilford County for which the average annual wage is at least $60,000. Allocates $15 million to the Airport site work needed at the Airport for the project; $35 million for roadwork needed at the airport; and $56.75 million for construction of one or more new hangars at the Airport for the project. States further limitations and requirements for the funds.
Amends Section 12.14 of SL 2021-180, changing the grant projects listed for grants from the Local Assistance for Stormwater Infrastructure Investments Fund. Now provides for $10.55 million for the City of Fayetteville (was, $9.8 million for the Fayetteville Pubic Works Commission), and $600,000 (was, $1.35 million) for the City of Hope Mills.
Authorizes unexpended and unencumbered funds allocated from the Shallow Draft Navigation Channel Dredging and Aquatic Weed Fund to Dare County by Section 13.7 of SL 2018-5 (allocating $15 million to the County to provide a forgivable loan to a private partner for the purchase of a shallow draft hopper dredge to be used under the direction of the Oregon Inlet Task Force for maintenance of shallow draft navigation channels located throughout the State) to be used by the County for purchase of a survey vessel. Requires the County to include detailed expenditure information in the required reporting under that Section.
Corrects a statutory cross-reference in GS 143-214.7, as amended by Section 1 of SL 2021-164 (Streamline Permits/Redevelopment of Property).
Part V. Justice and Public Safety
Makes further conforming changes to GS 15A-1343, 15A-1344, and GS 15A-1351, and GS 143-166.2, as amended by Section 19C.9 of SL 2021-180, to provide for the Division of Juvenile Justice, Department of Public Safety, where applicable, and not initially included in the revision of the Chapters to incorporate the new Department of Adult Correction, and Division of Juvenile Justice.
Amends GS 143-166.1, as amended by Section 19C.9 of SL 2021-180, to provide for the purpose of the Public Safety Employees' Death Benefits Act to be to provide a system of benefits for dependents of public safety employees who are covered persons (previously, listed law-enforcement officers, firefighters, rescue squad workers, and senior Civil Air Patrol members killed in the discharge of their official duties, and for dependents of noncustodial employees of the Department of Adult Correction killed by an individual or individuals in the custody of the Department of Adult Correction). Amends GS 143-166.2 to refer to the Department of Adult Correction, rather than specific divisions, regarding deaths of noncustodial employees that are included in the defined term "killed in the line of duty." Makes technical and clarifying changes to GS 143-166.2, as amended by Section 19C.9 of SL 2021-180.
Adds new Part 2A to Article 16 of GS Chapter 143B, as amended by Section 19C.9 of SL 2021-180, establishing the Division of Health Services of the Department of Adult Correction, with the powers and duties set forth in GS Chapter 143B and prescribed by the Department's Secretary. Makes a technical correction to GS 143B-1472, as amended by Section 19C.9 of SL 2021-180.
Makes the above changes of Part V. of this act effective January 1, 2023.
Amends Section 19C.9(aaaaa) of SL 2021-180 to make the instructions to the Revisor of Statutes regarding the creation of the Department of Adult Correction effective on the date that act became law (was, January 1, 2023).
Amends Section 19A.4 of SL 2021-180, extending the deadline for the report by the NC Sheriffs' Association to the specified NCGA committees and division from February 1, 2022, to April 1, 2022, on the guidelines and procedures governing the distribution and administration of grant funds to sheriffs offices and law enforcement agencies to investigate reports of internet crimes against children.
Amends Section 19A.7B of SL 2021-180, which establishes the Alternative to Pre-trial Detention Fund to be used to create a statewide domestic violence notification system, to instead require the Fund to be used to create a domestic violence notification system as described.
Makes a technical correction to the acronyms used for the Department of Public Safety, Division of Adult Correction and Juvenile Justice in Section 19C.12, SL 2021-180.
Adds new Section 19B.11 to SL 2021-180, directs that $18 million in nonrecurring funds for 2021-22 appropriated to the Department of Public Safety be used to provide funding to equip troopers to respond to excess civil disturbances and related events that can be used to purchase automatic external defibrillators, among other listed used in the Committee Report.
Amends GS 7A-41, as amended by Section 16.7 of SL 2021-180, to allocate two superior court judges (was, 1), to Superior Court District 21A (part of Forsyth), and one superior court judge (was, 2) to Superior Court District 21B (part of Forsyth). Effective January 1, 2023, and elections conducted in 2022 must be held accordingly.
Adds new Section 16.7C to SL 2021-180, effective July 1, 2022. Directs that $484,182 in recurring funds and $13,730 in nonrecurring funds for 2022-23 appropriated to the Administrative Office of the Courts be used to provide funding for superior court judges in Superior Court District 11B and Superior Court District 21B instead provide funding for superior court judges in Superior Court District 11B and Superior Court District 21A.
Amends GS 84-21 to require (rather than permit) a court to decline to have rules and regulations or amendments adopted by the council of the NC State Bar entered upon its minutes which the Chief Justice deems inconsistent with Article 4, which governs the NC State Bar.
Part VI. General Government
Amends Section 4.3 of SL 2020-4, as amended, to specify that the COVID-19 Recovery Legislation for which the North Carolina Pandemic Recovery Office is to oversee and coordinate funds, is as defined in Section 1.2 of SL 2020-4, and adds the American Rescue Plan Act, as defined in Section 1.1 of SL 2021-25 and Section 4.9 of SL 2021-180.
Amends Section 23.4 of SL 2021-180 by requiring that the $10 million in nonrecurring funds for the 2021-22 fiscal year appropriated from the State Fiscal Recovery Fund to OSBM, Pandemic Recovery Office, be used to provide grants to the American Indian tribes (was, the funds must be allocated to the American Indian Tribes based on the number of members enrolled in the tribes on July 1, 2021). Sets the amounts as follows: (1) $715,285 to each of the Coharie, Haliwa-Saponi, Lumbee, Meherrin, Occaneechi Band of the Saponi Nation, Sappony, and Waccamaw-Siouan tribes; (2) $4,000,000 to the seven tribes listed in (1) on a per 25 capita basis; and (3) $250,000 each to the Cumberland County Association for Indian People, the Guilford Native American Association, the Metrolina Native American Association, and Triangle Native American Society.
Amends Section 24.1B(a) of SL 2021-180 by expanding upon the allowable uses of the $5 million appropriated from the State Fiscal Recovery Fund to OSBM to be provided to the North Carolina Trucking Association Foundation, to allow the funds to be used to purchase a mobile learning vehicle.
Amends Section 29.4(d) of SL 2021-180, which requires the use of funds appropriated from the State Fiscal Recovery Fund to the North Carolina Housing Finance Agency to first be used to address funding gaps in previously awarded deals for eligible projects under GS 122A-5.15 (the Workforce Housing Loan Program) resulting from the COVID-19 pandemic. Adds that the cap on the amount of loans that may be made under GS 122A-5.15(c) does not apply to funds used to address funding gaps in previously awarded deals for eligible projects.
Amends Section 34.3A(h) of SL 2021-280 (appears to intend SL 2021-180) by amending the definition of gross receipts as used in the Business Recovery Grant Program, which defines gross receipts as the sum of (1) the North Carolina gross receipts listed on line 1 of Form E-500, Sales and Use Tax Return, for sales occurring during a specified time period and (2) the gross receipts not listed on Form E-500 but reported on line 1a of Form 1065 for federal returns, if any, provided the gross receipts are for transactions apportionable apportioned to the State. Adds that if a taxpayer did not list gross receipts on line 1 of the form, it may substitute the specified sum.
Adds new Section 23.7 to SL 2021-180, providing as follows. Provides that the funds appropriated in the act from the State Fiscal Recovery Fund to the State Education Assistance Authority to provide funds to eligible private postsecondary institutions, are now instead appropriated to OSBM to provide funds to those private postsecondary institutions as follows: (1) by distributing funds to each eligible private postsecondary institution on the basis of $1,250 per student who received a scholarship under Article 34 of GS Chapter 116 (Need-Based Scholarships for Students Attending Private Institutions of Higher Education), excluding (a) institutions that had fewer than 10 students receive such a scholarship in the 2019-20 academic year and (b) four-year institutions that had less than 10% of the degree-seeking undergraduate student population receive such a scholarship in the 2019-20 academic year and (2) after complying with the provisions of (1), by distributing any remaining funds to eligible private postsecondary institutions that qualified to receive federal funds pursuant to the specified provision of the Coronavirus Response and Relief Supplemental Appropriations Act, 2021, under one of the following programs: Historically Black Colleges and Universities (HBCUs), Minority Serving Institutions (MSIs), or Strengthening Institutions Program (SIPs). Requires funds to be distributed in an amount proportional to the amount of federal funds the institution qualified for under the specified programs. Provides that when applying the funding allocation method, OSBM must distribute a total amount of funds to eligible private postsecondary institutions based on the estimated schedule set forth in this section, allowing funds to be subject to adjustment as OSBM deems necessary. Requires the funds to be used to mitigate losses in revenue and to respond to the negative impacts of the COVID-19 pandemic for any permissible uses allowed under federal law and guidance (requires that of the funds appropriated in this act from the State Fiscal Recovery Fund to OSBM, the sum of $1 million be provided to High Point University to be used for these purposes).
Adds new Section 24.8 to SL 2021-180, as follows. Requires that the appropriation of $250,000 for 2022-23 to OSBM for a directed grant to Tabernacle of Faith Outreach Center be used instead to provide a directed grant to the River City Community Development Corporation for the operation of a homeless shelter. Requires that the $1 million for 2021-22 appropriated to OSBM for a directed grant to the Cumberland Community Foundation, Inc., for the Reduce Generational Poverty Fund, be used instead to provide a directed grant to the City of Fayetteville to be used as seed money for the City's Housing Trust Fund.
Adds new Section 33.9 to SL 2021-180, requiring that the $250,000 in nonrecurring funds appropriated for each fiscal year of the 2021-23 fiscal biennium appropriated to the Department of Military and Veterans Affairs for a directed grant to Interpreting Freedom Foundation, Inc., be used instead to provide a directed grant to Save Our Allies to support former military interpreters and their families.
Adds new Section 36.3 to SL 2021-180, authorizing the State Treasurer to establish new positions and eliminate vacant positions in the Office of the State Treasurer without regard to fund code during each fiscal year of the 2021-23 biennium. Requires that such adjustments not increase total requirements and not increase total requirements not authorized for future fiscal years.
Part VII. Transportation
Amends Section 41.3 of SL 2021-180, which provides that for the 2021-23 fiscal biennium, the Department of Transportation average month-end cash balance for the first three months in the calendar year prior to the date of determination must be equal to or less than $2 billion, by adding that for any issuance and sale of Build NC Bonds on or before June 30, 2022, the cash balance requirement under GS 142-97(2)a does not apply and the consultation requirement under GS 142-97(2)c must be no later than two months prior to the expected issuance of the bonds.
Adds new Section 41.61 to SL 2021-180, specifying that $27,500 in nonrecurring funds for 2021-22 must not be appropriated from the State Emergency Response and Disaster Relief Fund (SERDRF) to the Department of Transportation for the Rattlesnake Branch project in Duplin County. Makes a conforming change in the amount transferred in Section 2.2(j). Makes a conforming repeal of the allocation of funds for the project in Section 5.9(a)(29).
Amends the definition of sign not conforming to State standards used in the Outdoor Advertising Control Act under GS 136-128(5e), to refer more generally to criteria established in rules, instead of established in State law or State rules.
Allows Tabor City io participate in State and federal railroad revitalization programs necessary to ensure continued or improved rail service to the city as are authorized in Article 2D of GS Chapter 136 (Railroad Revitalization). Authorizes the City to enter into contracts with the North Carolina Department of Transportation to provide for the nonfederal matching funds for railroad revitalization programs. Expires December 31, 2026.
Part VIII. Salaries and Benefits
Amends Section 39.2(d) of SL 2021-180 to require employers of State employees and local education employees to provide the $500 bonus to all permanent full-time State employees and local education employees who are employed as of December 1, 2021 (was, January 1, 2022), and who meet at least one of the specified eligibility criteria.
Amends Section 39.16 of SL 2021-180 to require that the annual salaries of the specified State officials and persons and State employees (was, the annual salaries in effect for those some persons on June 30, 2021, and June 30, 2022) be increased as provided for in Section 39.1 of the act.
Amends Section 39.17 of SL 2021-180 to provide that the legislative salary increases provided in the act for the 2021-22 fiscal year must be paid effective on January 1, 2022, and do not apply to persons separated from service prior to December 31, 2021 (previously did not specify a separation date), due to resignation, dismissal, reduction in force, death, or retirement or whose last workday is prior to December 31, 2021. Provides that the amount of the legislative salary increases authorized for the period from July 1 to December 31, 2021, shall be paid in the form of a bonus equal to the authorized legislative salary increase for one-half of the fiscal year and may (was, must) be applied to the employee's base annual rate of pay.
Part IX. Capital
Amends Section 40.1 of SL 2021-180 by increasing the amounts allocated from the State Capital and Infrastructure Fund to the OSBM or capital improvement project codes for NCFS–Region 1 Headquarters (DACS21-4), Fort Fisher Historic Site–New Visitor Center (DNCR21-4) and Connect NC Bond Funds (CNC21); removes specified funding for SOL21-1. Makes a technical change to the $2 million allocated from project code R&R21 to the Department of Public Instruction for repairs and renovations of the Superintendent’s House on the campus of North Carolina School of the Deaf, to refer to the display of artifacts and exhibits related to the School’s history (was, to the Broughton Hospital’s history). Decreases the amount of funds allocated for project code UNC/R&R21 to NC State University for repairs and renovations to Dabney Hall from $60 million to $30 million.
Adds new Section 40.17 to SL 2021-180, amending the grants and funds allocated from the State Capital and Infrastructure Fund as follows. Requires the grant to Carteret County be provided to Carteret County instead. Allows the grant for the Graham County Courthouse to be used by Graham County for construction of a new courthouse facility. Reduces the grant for the Cleveland County Courthouse by $250,000. Requires the grant for the Tri-County Airport to be provided to the Tri-County Airport in Hertford County. Requires the grant for the Boiling Springs Dam to be provided to the City of Boiling Spring Lakes for repairs to the Boiling Spring Lakes Dam. Allows the grant for the Rhodes Pond Dam to also be used by the Wildlife Resources Commission to relocate the depot on the property. Requires the grant for Brandy Myers Memorial Park to be provided to the Town of Carolina Beach for cultivation of an all-inclusive playground to be named Brandy Myers Memorial Park. Requires the grant for Burke County Veterans Memorial to be provided instead to the City of Morganton for the development of a trail near the Catawba River. Reduces the grant to the Caldwell County Animal Shelter by $1.5 million. Requires the grant to the Carolina Land and Lakes Warehouse to be allocated to Carolina Land and Lakes Resource Conservation and Development for a new warehouse. Requires the grant to City of Winston-Salem Senior Services Building to be provided instead to Senior Services, Incorporated, for the construction of a new senior services building. Requires the grant to Cleveland County Student Center to be provided instead to Cleveland Community College for a new student center. Requires the grant to Town of Catawba Bridge Restoration to be provided instead to the Catawba County Historical Association Inc. for the Bunker Hill Bridge. Reduces the grant to Town of Louisburg Civic Center Renovation by $50,000. Requires the grant to Mable Smith Park to be provided to the City of Fayetteville to be used by Parks and Recreation to update the Mabel Smith Park, the Walker Spivey Park, and the Gilmore Therapeutic Center. Requires the grant to Pilot Mountain Bean Shoals Trail to be provided instead to Surry County for improvements to the Bean Shoals Trail. Requires the grant to Duplin County Veterans Museum Mural to be provided instead to the Town of Warsaw for a veterans mural. Requires the grant for the Spring Lake Civic Center Renovation to be provided instead to the Sandhills Family Heritage Association. Requires the funds to the Department of Natural and Cultural Resources for Charlotte Hawkins Brown to be used for the purchase and development of approximately 100 acres adjacent to the Charlotte Hawkins Brown State Historic Site in Guilford County to be added to the Historic Site. Requires the funds to the Department of Natural and Cultural Resources for Chowan Farm Heritage be provided instead as a grant to Heritage Association, a nonprofit corporation, for the purchase of nine acres at the Chowan Farm Heritage. Requires the funds to the Department of Natural and Cultural Resources for Shallow Ford to be used for the purchase and development of approximately 245 acres at the Shallow Ford of the Yadkin in Forsyth County to be managed in conjunction with other nearby State Historic Sites. Allows the funds to the Department of Natural and Cultural Resources for Shallow Ford Parking Lot to also be used for the construction of capital improvements at the Shallow Ford of the Yadkin in Forsyth County.
Appropriates specified amounts from the State Capital and Infrastructure Fund to the Office of State Budget and Management for the following purposes: (1) to be allocated in the form of a grant to the Lawndale Fire Department to be used for firefighting equipment and 47 vehicles, (2) to be allocated in the form of a grant to the City of Lenoir to be used for water and sewer projects, (3) to the Town of Bunn for capital improvements, and (4) to the Town of Franklinton for capital improvements.
Requires that for the Randolph Heritage Conservancy—NC Textile Museum grant allocated in this Part, the Department of Natural and Cultural Resources must work with Randolph Heritage Conservancy, Inc., to develop and implement a comprehensive plan for a textile museum and provide technical assistance with the expenditure of funds.
Requires the grant from the State Capital and Infrastructure Fund for Stokes County Hospital Renovations to be allocated to Stokes County for future grants exclusively for planning and related costs associated with the siting and construction of new medical facilities in Stokes County. Exempts the construction of any new medical facilities, including associated beds, using the grant funds allocated pursuant to this section from certificate of need review, provided that the new medical facilities and any associated beds shall be subject to existing licensure laws and requirements.
Amends Section 40.1(i) of SL 2021-180, which requires for project code NCGA21-3, that the Legislative Services Office use funds appropriated for the 2022-23 fiscal year to initiate advance planning, full planning, and design for the location of the UNC System Office in the downtown government complex, including any facility consolidation identified using the study conducted pursuant this section, by adding that the Legislative Services Office may also consider private leasing options within one mile of the State Capitol Building in accordance with the results of the study.
Part X. Information Technology
Amends Section 38.5 of SL 2021-180, which requires the Department of Information Technology to use the funds appropriated in the act from the State Fiscal Recovery Fund for Stopgap Solutions–Federal Broadband Funds to provide grants to internet service providers, local government entities, and nonprofits for the provision and installation of infrastructure that will expand the provision of broadband service to unserved and underserved households in this state; specifies that no more than 5% (was, 10%) of the funds described in this section may be granted for broadband projects located in any single county.
Amends Section 38.10 of SL 2021-180, concerning the Broadband Pole Replacement Program, as follows. No longer specifies that up to 1% of the funds appropriated for the Program, not to exceed the total sum of $100,000 in each fiscal year, may be used to administer the Program. No longer requires taking all actions necessary to obtain access to the Coronavirus Capital Projects Fund for implementation of the Program. Amends the definition of the term qualifying internet access service as it applies to the Program, to now define it as fixed, terrestrial Internet access service with such speeds and technical capabilities that meet or exceed the federal guidelines for use of American Rescue Plan Act funds (removes references to requirements set by the US Treasury).
Part XI. Effective Date
Effective July 1, 2021.
Changes the act's titles.
Summary date: Nov 29 2021 - View summaryAgriculture, Business and Commerce, Occupational Licensing, Courts/Judiciary, Court System, Criminal Justice, Corrections (Sentencing/Probation), Development, Land Use and Housing, Community and Economic Development, Property and Housing, Education, Elementary and Secondary Education, Higher Education, Employment and Retirement, Environment, Environment/Natural Resources, Government, Budget/Appropriations, Cultural Resources and Museums, Public Safety and Emergency Management, State Agencies, UNC System, Department of Agriculture and Consumer Services, Department of Commerce, Department of Natural and Cultural Resources (formerly Dept. of Cultural Resources), Department of Health and Human Services, Department of Information Technology, Department of Justice, Department of Labor, Department of Public Safety, Department of State Treasurer, Department of Transportation, Office of State Budget and Management, Office of State Controller, State Government, State Personnel, Local Government, Health and Human Services, Health, Health Care Facilities and Providers, Public Health, Transportation
Summary date: Jun 9 2021 - View summary
Senate amendment #1 amends the 5th edition of the bill as follows:
(1) Replaces references to the Department of Commerce in section 1.1 with the Department of Revenue, and
(2) Changes the amount the Department of Revenue may use to administer the Jobs Grant Program to 0.25% (was, $1 million) of the amount appropriated in section 1.2.Agriculture, Alcoholic Beverage Control, Animals, Business and Commerce, Corporation and Partnerships, Development, Land Use and Housing, Property and Housing, Government, Public Safety and Emergency Management, State Agencies, Department of Commerce, Department of Revenue, Tax, Local Government, Health and Human Services, Health, Transportation
Summary date: May 27 2021 - View summary
Senate committee substitute makes the following changes to the 4th edition.
Transfers $1 billion from the General Fund to the Savings Reserve for 2021-22 and $388,365,453 to the Savings Reserve for 2022-23, in addition to the amount required under specified State law. Specifies that the transfer is not an appropriation made by law, as provided in the NC Constitution. Effective July 1, 2021.
Makes additional technical changes. Makes conforming organizational changes and changes the act's long title.Agriculture, Alcoholic Beverage Control, Animals, Business and Commerce, Corporation and Partnerships, Development, Land Use and Housing, Property and Housing, Government, Public Safety and Emergency Management, State Agencies, Department of Commerce, Department of Revenue, Tax, Local Government, Health and Human Services, Health, Transportation
Summary date: May 26 2021 - View summary
Senate committee substitute deletes the content of the 3rd edition and replaces it with the following.
Sets out the purpose of this Part.
Creates the Job Opportunity and Business Saving Grant Program (Program) to be administered by the Department of Commerce (Department), under which the Department may provide a one-time grant for each award amount to a qualifying business. Defines award amount as an amount awarded from any of the following: (1) COVID-19 Job Retention Program, as defined; (2) an Economic Injury Disaster Loan Advance defined in any of the specified provisions; (3) Paycheck Protection Program, as defined; (4) Restaurant Revitalization Fund, as defined; or (4) Shuttered Venue Operators Grant Program, as defined. Defines a qualifying business as a business that listed a North Carolina address as its business address on the application for an award amount and was approved for that award amount. Caps the grant amount per award at the lesser of 7.5% of either the award amount or $250,000. Requires each grant to include a description of the award amount used to calculate the grant. Specifies that the Department's grant determinations are final. Prohibits the total of all funds granted, including the Department’s administration allocation from exceeding $1 billion.
Requires the Department to use currently available data from the Department, the Small Business Administration, and other available sources to identify qualifying businesses in this State that have been approved for an award amount on or before June 30, 2021. Requires the Department to award a grant to the last known address of an identified qualifying business for each ascertainable award amount by September 30, 2021. Also sets out the steps under which a qualifying business that was approved for an award amount on or before June 30, 2021, that does not receive a grant by September 30, 2021, may apply for a grant. Requires grants to be paid on a rolling basis to qualifying businesses that submit their applications on or before November 19, 2021.
Requires the Department to reopen the Program if the $1 billion limit has not been met by December 31, 2021. Allows a qualifying business that was approved for an award amount but did not receive a grant for that award amount to file a grant application; sets out application steps, including requiring the application to be filed by February 18, 2022. Prohibits the Department from awarding grants under this provision until the application deadline has passed. Requires grant awards to be reduced on a proportionate basis if the total amount to be awarded for these applications, when added to the amounts awarded above, exceeds the $1 billion maximum.
Requires for grants that were awarded pursuant to an application, that the business apply, under oath, on a form prescribed by the Department that includes: (1) a certification that the business was approved for the applicable award amount, (2) a certification that the business will promptly inform the Department of any reduction or recapture of the award amount and return any grant amount calculated on the reduced or recaptured award amount, and (3) any information necessary for the Department to evaluate the application. Requires the Department to include with every grant awarded under the Program a notice that: (1) the award must be returned or forfeited by a business to the extent the calculation of the award is premised on an award amount the qualifying business did not receive or did receive that was subsequently recaptured and (2) a business is responsible for returning or forfeiting any amount improperly received.
Requires the Office of Historically Underutilized Businesses to inform and educate minority-owned businesses that may be eligible to apply for the grants as soon as practicable.
Transfers $1 billion for 2021-22 from the State Fiscal Recovery Reserve to the State Fiscal Recovery Fund and appropriates that same amount from the State Fiscal Recovery Fund to the Office of State Budget and Management to be allocated to the Department of Commerce to be used for the Program. Allows the Department to use up to $1 million for Program administration. Requires the Department to remit remaining funds to the Office of State Budget and Management which must deposit the funds into the State Fiscal Recovery Reserve.
Amends GS 105-130.5(b) to allow a taxpayer to deduct from federal taxable income in determining State net income, the amount received by a taxpayer under the Job Opportunity and Business Saving Grant Program, to the extent included in federal taxable income. Also amends GS 105-153.5(b) to allow a taxpayer, in calculating NC taxable income, to deduct from the taxpayer’s adjusted gross income the amount the taxpayer received under the Job Opportunity and Business Saving Grant Program.
Effective for taxable years beginning on or after January 1, 2021, and applies to amounts received by a taxpayer on or after that date.
Decreases the individual income tax set out in GS 105-153.7(a) from 5.25% to 4.99%.
Increases the standard deductions set forth in GS 105-153.5(a)(1): from $21,500 to $25,500 for married, filing jointly; from $16,125 to $19,125 for head of household; and from $10,750 to $12,750 for single and married, filing separately.
Increases the current child deduction amounts set forth in GS 105-153.5(a1) by $500 for each filing category based on existing adjusted gross income (ADI) ranges. Expands the statute to add new child deduction amounts for the following ADI ranges. Provides a $500 deduction amount for: married, filing jointly with ADI over $120,000 and up to $140,000; for head of household with ADI over $90,000 and up to $105,000; and for single or married, filing separately with ADI over $60,000 and up to $70,000.
Makes the above provisions effective for taxable years beginning on or after January 1, 2022.
Under current law, the income tax imposed on C Corporations doing business in this State is set at 2.5%. Amends GS 105-130.3 by decreasing the rate to the following amounts: (1) 2% in 2024; (2) 1.5% in 2025; (3) 1% in 2026; (4) 0.5% in 2027; and (5) 0% after 2027. Effective for taxable years beginning on or after January 1, 2024.
Amends GS 105-122(d) to explicitly restrict a corporation's tax base to the proportion of its net worth apportioned to the State under subsection (c1). No longer provides for the tax base to be the greater of its apportioned net worth, the percentage of the corporation's appraised value or the corporation's total actual investment in tangible property in the State. Makes similar changes regarding the tax base of a corporate controlled noncorporate limited liability companies under GS 105-114.1(b).
Changes the corporate tax rate under GS 105-120.2 to set the corporate income tax cap at $150,000. Eliminates existing provisions for the calculation of corporate tax using the existing tax rate of $1.50 per $1,000 applied to the greater of a a specified percentage of the corporation's appraised value or the corporation's total actual investment in tangible property in the State.
Effective for taxable years beginning on or after January 1, 2023, and applicable to the calculation of franchise tax reported on the 2022 and later corporate income tax return.
Amends GS 105-129.71(a1), which establishes a tax credit for eligible certified rehabilitated railroad stations, now defined to include a designated local landmark certified on or before September 1, 2020 (was, June 30, 2019), and is issued a certificate of occupancy on or before December 31, 2023 (was, December 31, 2021). Makes conforming changes to the credit installment provisions. Amends GS 105-129.75, extending the expiration of eligibility certifications under Article 3H from January 1, 2023, to January 1, 2025. Additionally, for credits allowed under GS 105-129.71(a1), requires the qualified rehabilitation expenditures to be incurred before January 1, 2024 (was, January 1, 2022), with the Article expiring and credits barred for rehabilitation projects not completed and placed in service prior to July 1, 2024 (was, January 1, 2022).
Amends GS 105-228.5, regarding premium tax on surety bonds, adding the following specifications. Provides that gross premiums from business done in the State in the case of an insurer of bail bonds means the amounts received by an insurer from a surety bondsman during the calendar year for bail bonds written on behalf of the insurer. Subjects an insurer to the definitions of gross premiums under the statute for premiums from transacting any other line of insurance business. Defines terms by statutory cross-reference. Effective for taxable years beginning on or after January 1, 2022.
Amends GS 105-113.4, which sets out the definitions of terms used in Article 2A, Tobacco Products Tax, as follows. Amends the definition of the term delivery sale to mean a sale of cigarettes, smokeless tobacco, or vapor products (was, tobacco products) to a consumer in this State in which either of the following apply: (1) the consumer submits the order for the sale by telephone, mail, the Internet or other online service or application, or when the seller is otherwise not in the physical presence of the consumer when the consumer submits the order; or (2) the tobacco products cigarettes, smokeless tobacco, or vapor products are delivered via mail or a delivery service. Adds and defines the term remote sale as a sale of tobacco products other than cigarettes, smokeless tobacco, or vapor products to a consumer in this State in which either of the following applies: (1) the consumer submits the order for the sale by telephone, mail, the Internet, or other online service or application, or when the seller is otherwise not in the physical presence of the consumer when the consumer submits the order; or (2) the tobacco products other than cigarettes, smokeless tobacco, or vapor products are delivered via mail or a delivery service. Defines a remote seller as a person located within or outside this State who makes a remote sale. Amends the definition of retail dealer to specifically include a remote seller or a delivery seller. Amends the term delivery seller to specify that the person making a delivery sale can be located within or outside this State. Limits the term delivery sale to the sale of cigarettes, smokeless tobacco, or vapor products (was, tobacco products), meeting the other specified conditions. Expands the definition of distributor to also include a delivery seller of cigarettes. Amends the definition of the term cost price to now mean the actual price paid for an item subject to the tax under new Part 3A (Tax on Tobacco Products Other Than Cigarettes) by the person liable for the tax; specifies that the actual price paid for an item may be either: the actual price paid for an item identified as a stock keeping unit by a unique code or identifier representing the item, or, if the actual price paid for an item is not available, the average of the actual price paid for the item over the 12 calendar months before January 1 of the year in which the sale occurs. Defines the term smokeless tobacco.
Amends GS 105-113.4F, concerning delivery sales of certain tobacco products, by making the statute applicable to delivery sales. Specifies that for the statute, tobacco products mean cigarettes, smokeless tobacco, or vapor products. Removes the exception to the statute for sales of tobacco products by a retail dealer who purchased the tobacco products from a licensed distributor or wholesale dealer. Clarifies that a delivery seller that meets the definition of a "retailer" is subject to all State laws that apply to a retailer in this State. Makes additional conforming and clarifying changes.
Amends GS 105-113.5, which levies a tax on the sale or possession for sale in this State, by a licensed distributor, of all cigarettes at the rate of 2.25¢ per individual cigarette. No longer makes the licensed distributor who first acquires or otherwise handles cigarettes subject to the tax liable for the tax. Instead, makes a licensed distributor who meets any of the following conditions liable for the tax: (1) is the first person to possess or acquire cigarettes in this State; (2) is the first person to bring into this State cigarettes made outside the State; (3) is the original consignee of cigarettes made outside the State that are shipped into the State; or (4) makes a delivery sale of cigarettes for which the delivery seller is required to collect sales and use tax under Article 5 (Sales and Use Tax).
Amends GS 105-113.12G by expanding the locations for which a distributor must have a license to now include: (1) each location where a distributor receives or stores non-tax-paid cigarettes in this State; and (2) for a distributor that is a delivery seller, each location from which the distributor ships delivery sales of cigarettes, if the location is a location other than the location described in (1). Makes additional conforming and clarifying changes.
Amends GS 105-113.18 as follows. Requires a licensed distributor that is a delivery seller to comply with the filing requirement under GS 105-113.4F. Provides that a person who is not a licensed distributor and has acquired non-tax-paid cigarettes for sale, use, or consumption, subject to the tobacco products tax must, within 96 hours after receipt of the cigarettes, file a report on the amount of cigarettes received and any other required information. Expands the shipping report requirements to also require a person who causes to transport, cigarettes upon the public highways, roads, or streets of this State, to file a report.
Repeals Part 3 of Article 2A of GS Chapter 105, Tax on Other Tobacco Products, which (1) levied an excise tax on tobacco at the rate of 12.8% of the cost price of the products (excluding cigarettes); and (2) levied an excise tax on vapor products at the rate of 5¢ per fluid milliliter of consumable product. Replaces it with new Part 3A, Tax on Tobacco Products Other Than Cigarettes. Defines tobacco product to mean a tobacco product other than cigarettes.
Subpart 1 provides as follows.
Levies an excise tax on the sale, use, consumption, handling, or distribution of tobacco products at the following rates: (1) on vapor products, the rate of 5¢ per fluid milliliter of consumable product; (2) on cigars, the rate of 12.8% of the cost price, capped at 30¢ per cigar; and (3) on all other tobacco products, the rate of 12.8% of the cost price.
Assigns primary responsibility for the tax to a wholesale dealer that has not been relieved of paying the tax or a retail dealer, if the dealer meets any of the following conditions: (1) is the first person to possess or acquire the tobacco product in this State; (2) is the first person to bring a tobacco product made outside the State into this State; (3) is the original consignee of a tobacco product made outside the State that is shipped into the State; or (4) makes a remote sale or a delivery sale for which the dealer is required to collect sales and use tax. Provides that a retail dealer located in this State who acquires from a wholesale dealer non-tax-paid tobacco products subject to the statute’s tax is liable for any tax due on the tobacco products.
Exempts from this tax: (1) a tobacco product sold outside the State; (2) a tobacco product sold to the federal government; and (3) a sample tobacco product distributed without charge.
Levies a tax on the sale or possession for sale by a person other than a licensed wholesale dealer or a licensed retail dealer and upon the use, consumption, or possession for use or consumption of tobacco products within this State at the rate set in this statute; excludes tobacco products for which the tax levied in this statute has been paid.
Subpart 2 provides as follows.
Allows a manufacturer who is not a retail dealer and who ships tobacco products to either a wholesale dealer or a retailer to be relieved of paying the tax on tobacco products imposed by this Part, but still requires the filing of the required report. Provides that if a manufacturer has been relieved of paying the tax the relief also applies to an integrated wholesale dealer with whom the manufacturer is an affiliate. Provides that if a person is both a manufacturer of cigarettes and a wholesale dealer of tobacco products, and the person given permission to be relieved of paying the cigarette excise tax, the permission also applies to the tax imposed by this Part on tobacco products.
Prohibits a licensed wholesale dealer from selling, borrowing, loaning, or exchanging non-tax-paid tobacco products to, from, or with another licensed wholesale dealer, and prohibits an integrated wholesale dealer from selling, borrowing, loaning, or exchanging non-tax-paid tobacco products to, from, or with another integrated wholesale dealer.
Sets out the conditions under which a 2% discount may be claimed and when a wholesale dealer or retail dealer may seek a refund of the paid tax.
Subpart 3 provides as follows.
Requires a remote seller to do all of the following with respect to a remote sale: (1) obtain a license before accepting an order; (2) report, collect, and remit all applicable taxes. Specifies that a remote seller that meets the definition of a "retailer" is subject to all State laws that apply to a retailer in this State. First violations are subject to a penalty of $1,000; subsequent violations are subject to a penalty not to exceed $5,000.
Specifies five types of records that must be maintained by a remote seller.
Subpart 4 provides as follows.
Requires a wholesale dealer or a retail dealer to obtain a license for each location and pay the specified license tax for each license. Specifies that the locations are: (1) each location where a wholesale dealer makes tobacco products; (2) each location where a wholesale dealer or a retail dealer receives or stores non-tax-paid tobacco products; and (3) each location from where a retail dealer that is a delivery seller or remote seller ships delivery sales or remote sales if the location is a location other than the location described in (2). Sets out the requirements to be met for an out-of-state wholesale dealer of tobacco products that is not a delivery seller or a remote seller to obtain a wholesale dealer's license.
Specifies that the taxes levied by this Part are payable by the entity that is primarily liable for the tax when a report is required to be filed. Makes a report due on a monthly basis and sets out additional requirements for the report. Requires a person who is not a licensee under this Part who has acquired non-tax-paid tobacco products for sale, use, or consumption subject to the tax imposed by this Part to report within 96 hours after receipt of the tobacco products on the amount of tobacco products received and any other required information; requires the full tax payment to be included with the report. Requires a person who transports, or causes to transport, tobacco products upon the public highways, roads, or streets of this State to, upon notice from the Secretary, file a report.
Allows the Secretary to require a wholesale dealer or a retail dealer to furnish a bond in an amount that adequately protects the State from a wholesale dealer's or a retail dealer's failure to pay taxes due under this Part. Sets out additional requirements for the bond, including for calculating the bond amount which must be no less than $2,000 and no more than $2 million. Allows a wholesale dealer or a retail dealer to substitute an irrevocable letter of credit for the secured bond.
Requires that 6% of the net proceeds of the tax collected under this Part to be remitted to the University Cancer Research Fund, with the remainder remitted to the General Fund. Makes conforming changes to GS 116-29.1.
Makes all of Subpart F effective July 1, 2022, and applicable to sales or purchases occurring on or after that date. Specifies that it does not affect the rights or liabilities of a taxpayer, or another person arising under the law as it existed before the effective date of this Subpart, nor does it affect the right to any refund or credit of a tax that accrued under the law as it existed before the effective date of this Subpart.
Makes the general tax rate of 4.75% set forth in GS 105-164.4 applicable to the gross receipts derived from a short-term motor vehicle rental by a peer-to-peer vehicle sharing facilitator. Makes conforming changes to GS 105-164.13. Adds and defines peer-to-peer vehicle sharing facilitator and short-term vehicle rental to GS 105-164.3. Defines short-term vehicle rental to mean a motor vehicle rental to the same period for a period less than 365 continuous days.
Amends GS 105-187.1 to exclude a short-term vehicle rental by a peer-to-peer vehicle sharing facilitator from the term vehicle sharing service.
Enacts GS 105-164.44N to provide for $500,000 to be transferred from the General Fund to the Highway Fund each fiscal year beginning with the 2021-22 fiscal year within 75 days after the end of each fiscal year in recognition of the fact that peer-to-peer vehicle rentals exercise the privilege of using the highways of this State.
Amends GS 105-187.9 to provide for taxes collected at the rate of 5% and 8% under the Article 5A (NC Highway Use Tax) be credited to the Highway Fund (previously $10 million credited annually to the Highway Fund with the remainder credited to the General Fund). Maintains that taxes collected at a 3% tax rate are credited to the Highway Trust Fund. Effective July 1, 2021.
Applies to sales occurring on or after October 1, 2021.
Amends GS 105-278.2, which sets forth a tax exemption for real property set apart for burial purposes, with assessment of the property based on certain specified considerations.
Current law excludes from the exemption real property set apart for burial purposes that is owned and held for purposes of sale or rental, or sale of burial rights therein. Modifies subsection (a) to now provide for the exemption of commercial real property set apart for burial purposes owned and held for purposes of sale or rental or sale of burial rights. Makes taxes that would otherwise be due on this classification of real property a lien on the real property of the taxpayer as set forth in GS 105-355(a), with the taxes carried forward in the records of the taxing unit(s) as deferred taxes, due and payable when the property loses its eligibility for deferral as a result of a disqualifying event (including when the property is transferred for a purpose other than burial purposes). Provides for payment of deferred taxes pursuant to the uniform provisions set forth in GS 105-277.1F.
Now provides that real property not held for the purposes listed in subsection (a), as amended, that is set apart for burial purposes is exempt from taxation. Maintains the provisions prohibiting a county from denying the exemption to a taxpayer that lacks a survey or plat detailing the exempt property. No longer provides the considerations required for assessment of the property.
Amends the term real property to also include buildings, structures, improvements, and permanent fixtures (was, only land, tombs, vaults, monuments, and mausoleums).
Makes conforming changes to GS 105-277.1F.
Amends GS 105-282.1 to maintain the provision that does not require an application to be filed for exempt burial property of a taxpayer for real property exempt under existing law (now referenced as GS 105-278.2(b)). Adds commercial burial property to those exempt properties for which a taxpayer can file one application for the benefit with subsequent filing unless changes are made to the property.
Adds vaccines as a class of property excluded from the tax base as provided in GS 105-275.
Effective for taxable years beginning on or after July 1, 2022.
Changes the penalties for failure to pay taxes due under GS 105-236 to require a 2% assessment of the amount of the tax if failure is for no more than one month, with an additional 2% for each additional month, or fraction thereof, during which the failure continues, with a 10% aggregate maximum assessment permitted (was, a flat 10% assessment for failure to pay taxes when due). Applies to penalties assessed on or after January 1, 2022.
Amends GS 105-228.90 to update the term Code as it applies to the general administration of taxation to mean the Internal Revenue Code as enacted as of April 1, 2021 (currently, May 1, 2020).
Amends GS 105-153.5(a)(2)b. to modify the allowable itemized deduction an individual may elect to deduct from their gross income for mortgage expense and property tax. Prohibits the amount allowed as a deduction for interest paid or accrued during the taxable year under the Code with respect to any qualified residence from including the amount for mortgage insurance premiums treated as qualified residence interest for taxable years 2014 through 2021 (currently limited to taxable years 2014 through 2020).
Amends GS 105-153.5(c2) to modify the required adjustments to an individual’s gross income, which are decoupled from federal requirements. Requires the taxpayer to add the amounts excluded from the taxpayer’s gross income for the discharge of qualified principal residence indebtedness and qualified tuition and related expenses under the Code for taxable years 2014 through 2025 (currently limited to taxable years 2014 through 2020). Requires the taxpayer to add the amounts excluded from the taxpayer's gross income for payment by an employer of principal or interest on any qualified education loan incurred by the taxpayer for education of the taxpayer for taxable years 2020 through 2020 (currently limited to taxable year 2020), expanding the purpose of the provision to include decoupling from the federal exclusion of payments under the Consolidated Appropriations Act, 2021. Requires a taxpayer to add the amount of any expense deducted under the Code to the extent the expense is allocable to income that is either wholly excluded from gross income or wholly exempt from the taxes imposed by Part 2 of Article 4 (was, to the extent that payment of the expense results in forgiveness of a PPP loan under the federal Cares Act and the associated income is excluded from gross income under the same specified section of the Cares Act). Adds new decoupling provisions as follows. For taxable years 2021 and 2022 to require a taxpayer to add an amount equal to the amount which the taxpayer's deduction under of the specified section of the Code, regarding business-related expenses for food and beverages provided by a restaurant, exceeds the deduction that would have been allowed under the Code enacted as of May 1, 2020, stating the purpose of the provision is to decouple from the increased federal deduction under the Consolidated Appropriations Act, 2021. For taxable years 2021 through 2025, requires a taxpayer to add the amount excluded from the taxpayer's gross income for the discharge of a student loan under the specified section of the Code in order to decouple from the exclusion from income for the discharge of a student loan under the specified section of the American Rescue Plan Act of 2021. For taxable year 2020, requires a taxpayer to add the amount excluded from the taxpayer's gross income for unemployment compensation received by the taxpayer under the specified section of the Code in order to decouple from the exclusion from income for unemployment compensation under the specified section of the American Rescue Plan Act of 2021.
Amends GS 105-130.5(a), which enumerate additions to federal taxable income in determining State corporate net income. Requires a taxpayer to add the amount of any expense deducted under the Code to the extent the expense is allocable to income that is either wholly excluded from gross income or wholly exempt from the taxes imposed by Part 1 of Article 4 (was to the extent that payment of the expense results in forgiveness of a PPP loan under the federal Cares Act and the associated income is excluded from gross income under the same specified section of the Cares Act).
Makes the following changes to Part 1A, Article 4, which governs S Corporation income tax.
Adds and defines a taxed S Corporation under GS 105-131 to mean an S Corporation for which a valid election for taxation under GS 105-131.1A, as enacted, is in effect.
Enacts GS 105-131.1A, authorizing an S Corporation to elect on its timely filed annual tax return to have income tax imposed on the S Corporation at the rate for individual income tax under GS 105-153.7 (currently set at 5.25% for taxable years beginning on or after January 1, 2019) for any taxable period covered by the return. Bars revocation of the election after the due date of the return including extensions. Provides for the tax to to be levied, collected, and paid annually. Establishes parameters for determining taxable income of a taxed S Corporation attributable to the State. Provides for a taxed S Corporation that qualifies for a credit to apply each shareholder's pro rata share of the credits against the shareholder's pro rata share of the income tax imposed. Requires the S Corporation to pass through to its shareholders any credit required to be taken in installments if the first installment was taken in a taxable period that the election under the statute was not in effect. Prohibits passing through credits allowed for any taxable period the S Corporation makes the election (including the carryforward of unused portions of such credit), or any subsequent installment of a credit required to be taken in installments after election is made (including the carryforward of unused portions of such installments). Provides for credit against income taxes imposed for income taxes imposed by and paid to another state or country, as specified. Provides for shareholders to deduct their pro rata share of income from the taxed S Corporation as provided under GS 105-153.5(c3)(1), as enacted, subject to the S Corporation's full payment of taxes due within the time allowed for filing the return and requires shareholders to make an addition for their pro rata share of loss from the taxed S Corporation as provided under GS 105-153.5(c3)(2), to the extent of inclusion in the taxed S Corporation's taxable income and the taxpayer's adjusted gross income. Details requirements for the taxed S Corporation to pay the full amount shown on the return within the time allowed for filing the return. Allows the S Corporation to request a refund for overpayment. Provides for collection of tax debt following proper notice by the Secretary of Revenue. Provides for the basis of shareholders of taxed S Corporations in their stock and indebtedness of the S Corporation to be determined as if the election had not been made.
Makes conforming changes to GS 105-131.1, which exempts S Corporations from the income tax imposed on C Corporations under GS 105-130.3 and provides for income tax of S Corporation shareholders.
Amends GS 105-131.7 to make the general provisions for S Corporations regarding shareholder agreements and mandatory withholdings set forth in subsections (b) through (f) not applicable to taxed S Corporations.
Adds taxed partnership and taxed S Corporation to the defined terms under GS 105-153.3, applicable to individual income tax provisions of Part 2 of Article 4. Adds and defines taxed pass-through entity to mean a taxed S Corporation or a taxed partnership.
Enacts GS 105-154.1, authorizing a partnership to elect on its timely filed annual tax return to have income tax imposed on the partnership at the rate for individual income tax under GS 105-153.7 (currently set at 5.25% for taxable years beginning on or after January 1, 2019) for any taxable period covered by the return. Excludes publicly traded partnerships or partnerships that have at any time in the taxable year had a partner that is not an individual, an estate, a trust, or an organization described in section 1361(c)(6) of the Code (concerning qualified trusts for employer bonus, pension, and profit-sharing plans). Enacts substantively identical provisions to those enacted in new GS 105-131.1A for taxed S Corporations, made applicable for taxed partnerships, except as follows. Provides distinguished parameters for the determination of taxable income of taxed partnerships attributable to the State.
Amends GS 105-153.5, enacting new subsection (c3) to specify four adjustments that taxpayers must make to the taxpayer's adjusted gross income, providing for deduction for a taxpayer who is either a shareholder or partner of a taxed pass-through entity for the pro rata or distributive share of income from the respective entity to the extent it was included in the taxed entity's NC taxable income and the taxpayer's adjusted gross income; and an addition of the amount of the same described taxpayer's pro rata or distributive share of loss from the taxed pass-through entity to the extent it was included in the taxed entity's NC taxable income and the taxpayer's adjusted gross income.
Amends GS 105-153.9 to disallow shareholders of taxed S Corporations or partners of a taxed partnership a credit for taxes paid by the taxed S Corporation or taxed partnership to another state or country on income that is taxed to the taxed S Corporation or taxed partnership. Deems the shareholder's pro rata share or the partner's distributive share of the income of the taxed pass-through entity to be treated as income taxed to the shareholder or partner under the Individual Income Tax Act, and a shareholder's pro rata share or partner's distributive share of the tax imposed on the taxed pass-through entity by election under new GS 105-131.1A or new GS 105-154.1 to be treated as tax imposed on the shareholder or partner under the Individual Income Tax Act (Part 2 of Article 4), for purposes of allowing the credit for taxes paid to another state or country by a taxed S Corporation's shareholders or a taxed partnership's partners. Entitles a taxed partnership to a credit for all such taxes paid. Makes conforming changes to GS 105-131.8 regarding shareholder income tax by a state that does not measure the income of S Corporation shareholders by the income of the S Corporation. Makes similar conforming changes to GS 105-154 regarding nonresident members.
Amends GS 105-160.4 to disallow fiduciaries and beneficiaries of estates and trusts who are shareholders of a taxed S Corporation a credit for income taxes paid by the estates and trusts or by the taxed S Corporation to another state or country on income that is taxed to the taxed S Corporation; entitles the S Corporation to a credit under GS 105-153.9, as amended, for all such taxes paid. Establishes identical provisions regarding taxed partnerships; entitles the taxed partnership to a credit for all such taxes paid.
Makes the requirements of Article 4C, which requires declarations of estimated corporate income tax and installment payments of estimated income tax, apply to taxed pass-through entities in the same manner as a taxed corporation under Article 4, except GS 105-163.41(d)(5) (regarding underpayment interest) does not apply to a taxable year of a taxed pass-through entity if it was not a taxed pass-through entity during the preceding year.
Effective for taxable years beginning on or after January 1, 2021.
Enacts GS 105-153.5A, permitting a taxpayer to carry forward a State net operating loss the taxpayer incurred in a prior taxable year and deduct it in the current taxable year. Establishes parameters for calculating a taxpayer's State net operating loss for a taxable year. Sets forth four limitations for the deduction. Details application to nonresident or part-year resident taxpayers. Provides for administration of the provisions, including required access to records for verification of the deduction amount. Allows for the portion of a taxpayer's federal net operating loss carryforward that was not absorbed in tax years beginning prior to January 1, 2021, to be included in the amount of a taxpayer's State net operating loss in taxable years beginning on or after January 1, 2021. Establishes limitations to the federal net operating loss carryforward permitted for a State net operating loss in tax years beginning after January 1, 2021. Makes conforming changes to GS 105-153.5. Effective for taxable years beginning on or after January 1,2021.
Amends GS 105-153.5(b) to extend the sunset for the personal income tax deduction for amounts granted to the individual under the Extra Credit Grant program, now setting the provision to expire on January 1, 2022, rather than January 1, 2021.
Modifies and adds to the decoupling adjustments set forth in GS 105-135.5(c2) for individual income tax. Clarifies that the add-back provision for taxable years 2019 and 2020 under subdivision (17) regarding federal deduction for business interest expenses that would have been allowed under the Code as enacted on January 1, 2020, is not required to the extent the amount was required to be added back under another provision of subsection (c2). Enacts GS 105-135.5(c2)(17a) to allow a taxpayer who made an addition under subdivision (17) to deduct 20% of the addition in each of the first five taxable years beginning with the tax year 2021.
Makes a technical change to remove a statutory reference in GS 105-153.9 which has since been repealed.
Amends GS 105-163.7 to modify the deadlines for informational returns due to the Secretary of Revenue (Secretary) to now require an employer who terminates its business before the close of the calendar year to file its informational return on or before the last day of the month following the end of the calendar quarter in which the employer terminates its business, but no later than January 31 of the succeeding year (previously required filing within 30 days of the last payment of remuneration for employers who terminated business or permanently ceased paying wages during the calendar year).
Enacts GS 105-163.8(c) to require the Secretary to estimate the individual tax due and assess the withholding agent based on the estimate if a withholding agent fails to file a return and pay the tax due under Article 4A or fails a grossly incorrect or false or fraudulent return.
Amends GS 105-241.6(b), regarding exceptions to the statute of limitations for individual tax refunds. Now establishes that the period to request a refund of individual overpayment is six months after the end of an event that a taxpayer claims prevents the taxpayer from filing an accurate and definite request within the statutory period. Requires rather than permits the taxpayer to submit a written request to the Secretary seeking an extension prior to the statute of limitations.
Amends GS 105-252.1 to now prohibit a TTIN (Truncated Taxpayer Identification Number) from being used on any return, statement, or other document required to be filed or furnished to the Department of Revenue (DOR) unless specifically authorized by the Secretary, rather than specifically authorized by statute in GS Chapter 105.
Amends Section 1.2, SL 2021-16, specifying that the provisions which prohibit the accrual of interest from April 15, 2021, through May 17, 2021, on an underpayment of tax imposed on an individual income tax return due to the extension of the State tax filing deadline for individuals for the 2020 tax year, includes a partnership and estate and trust tax return.
Amends GS 105-83, which governs privilege taxes for installment paper dealers, to exclude from the statute's scope banks and savings and loans associations (currently, corporations liable under a since repealed statutory cross-reference, and savings and loans associations). Defines bank by statutory cross-reference. Applies retroactively for taxable years beginning on or after July 1, 2016.
Amends GS 105-130.5(a), regarding additions to federal corporate income tax. Clarifies that regarding the required addition of amounts equal to the deduction for business-related interest expenses for taxable years 2019 and 2020 which would have been allowed under the Code as enacted on January 1, 2020, under subdivision (31), the add-back is not required to the extent the amount was required to be added back under another provisions of subdivision (31). Enacts GS 105-130.5(b)(33) to permit a taxpayer who made an addition under subdivision (a)(31) to deduct 20% of the addition in each of the first five taxable years beginning tax year 2021.
Amends GS 105-130.7B to add that the limitation on qualified interest expense does not apply to interest paid or accrued to a related member if the proportionate amount of interest paid or accrued to a related member has already been disallowed by the application of another specified section of the Code regarding the limitations on business interest. Applies retroactively for taxable years beginning on or after January 1, 2018.
Regarding the corporate net loss provisions in the context of mergers and acquisitions under GS 105-130.8A, requires the Secretary to apply the net economic loss standards of GS 105-130.8 (repealed for taxable years beginning on or after January 1, 2015) for mergers and acquisitions occurring prior to January 1, 2015, and the standards of the statute, which requires the Secretary to apply federal regulations, for taxable years beginning on or after January 1, 2015.
Adds to the kinds of information the Secretary can request of a corporation under GS 105-251 to include financial or tax documentation required to determine the appropriate adjustment under GS 105-130.5A, as amended. Authorizes the Secretary to propose any adjustment allowable under the corporate income tax provisions of Part I, Article 4 of the Chapter if the information is not timely provided as required by GS 105-130.5A.
Amends GS 105-164.13E to exempt fowl, rather than baby chicks and poults, purchased by qualifying farmers from sales and use tax. Applies retroactively to purchases made on or after July 1, 2020.
Eliminates the authorized disclosure of tax information by State officers, employees and agents under GS 105-259(b) for the purpose of furnishing a list of the utility taxable gross receipts and piped natural gas tax revenues attributable to a city to the appropriate finance officials of the city.
Makes the following changes to the revocation procedure for tobacco product licenses under GS 105-113.4B. Authorizes the Secretary to summarily revoke a license when the Secretary determines (rather than finds) that the licensee is incurring liability after failure to pay applicable taxes when due. Requires notice of revocation and notice of hearing to be held within 10 days of the notice, unless the licensee requests the hearing to be rescheduled before the date of the hearing whereby the Secretary must reschedule the hearing to allow for 10 days' notice. Establishes that the revocation is not stayed pending the hearing decision. Details notice of hearing requirements. Requires the Secretary to issue a final decision and notify the revoked licensee in writing within 10 days of the hearing stating the basis of the decision, though the stated basis is not binding on DOR. Details the required procedure for revocation applicable to non-summary revocations, which include, (1) notice of the proposed revocation that includes the basis and effectiveness of the proposed revocation as well as the circumstances under which revocation will not occur and an explanation of how the licensee can contest the proposed revocation, (2) deeming any proposed revocation final, and not subject to further administrative review, if not timely contested by requesting a hearing within 45 days of the proposed revocation notice, and (3) requiring the Secretary to conduct a hearing with 20 days' written notice, if timely requested, and issue a final decision and notify the licensee within 60 days of the hearing, with extension allowed upon mutual agreement, with the final decision, basis for the decision which is not binding on DOR, and if applicable, the effectiveness of revocation. Establishes criteria for delivery of notice and return of credentials.
Enacts GS 105-449.47B, establishing substantively identical authority of the Secretary and revocation procedure for motor carrier licenses or decals for noncompliance with Articles 36B, 36C or 36D, as that provided for non-summary revocations in GS 105-113.4B, as amended.
Amends GS 105-449.76 to modify the procedures for summary and non-summary revocations of fuel importer licenses to be the same as those provided in GS 105-113.4B, as amended.
Amends GS 119-19 to modify the procedures for summary and non-summary revocations of kerosene suppliers, distributors and operators, and dyed diesel fuel distributors' licenses for noncompliance with Article 3 or Article 36C or 36D of GS Chapter 105, to be the same as those provided in GS 105-113.4B, as amended. Adds to the procedure required for cancellation of a license upon written request of the licensee to require the request to include a proposed effective date, and require the license be returned on or before the proposed effective date. Otherwise cancels the license within 15 days after DOR receives the request. Requires the inclusion of an explanatory statement when a license cannot be returned. Requires the Secretary to notify the licensee when the license is cancelled.
Applies to summary revocations and non-summary revocations initiated by DOR on or after January 1, 2022.
Recodifies GS 105-113.8 as GS 105-113.4H, regarding the federal Constitution and statutes applicable to tobacco products tax.
Recodifies GS 105-113.11 as GS 105-113.4I. Amends the statute, expanding the licensure mandate regarding engagement in the tobacco product business in the State to include wholesale dealers and retail dealers in addition to the existing requirement for distributors.
Recodifies GS 105-113.29 as GS 105-113.4J. Amends the statute to make conforming changes, expanding the prohibition on operating an unlicensed business that sells, offers for sale, or possess with the intent to sell tobacco products.
Recodifies GS 105-113.33 as GS 105-113.4K, regarding criminal penalties for violations.
Amends GS 105-113.18 to exclude licensed distributors from the required use tax reports.
Amends GS 105-113.35 to no longer allow a manufacturer to request a waiver from tax on vapor products shipped to either a wholesale dealer or retail dealer.
Amends GS 105-113.37 to specify that tobacco product taxes levied by the Part (rather than the Article) are payable by a licensed wholesale dealer or licensed retail dealer when the monthly report is required to filed covering tobacco products, excluding cigarettes. Adds a new requirement for persons not licensed as wholesale dealers or retail dealers that have acquired non-tax-paid tobacco products other than cigarettes to file a report with the Secretary within 96 hours after receipt, showing the product amount and any other required information, along with the tax owed.
Amends GS 105-113.83 to relieve alcoholic beverage excise tax liability for breweries or wineries who have transferred malt beverages or wine, so long as specified conditions are met, with the wholesaler receiving the transfer liable for the tax due. Makes organizational changes.
Amends GS 105-113.86 to authorize the Secretary to require, rather than mandating, wholesalers or importers to furnish a bond of at least $5,000. Additionally authorizes the Secretary to require a distillery to furnish a similar bond of at least $2,000. Makes clarifying and conforming changes.
Amends GS 105-236 to include failure to pay a license required under GS 105-113.4I, as recodified and amended, after written notification from DOR, among those actions which are punishable by a $1,000 penalty. Makes technical changes. Applies to penalties assessed on or after January 1, 2022.
Adds to GS 105-449.45 regarding penalties for failure of motor carriers to file a return as required. Adds a new penalty for failing to pay the tax, set at the greater of $50 or 10% of the tax due. Provides exceptions and authorizes the Secretary to reduce or waive a penalty under specified state law.
Adds fuel grade ethanol to the defined terms set out in GS 105-449.60, applicable to Article 36C, defined by specified federal standards. Makes conforming changes to the defined term gasohol, now defining the term to mean a blended fuel composed of gasoline and fuel alcohol or gasoline and ethanol. Effective January 1, 2022.
Amends the duties of transporters of motor fuel by railroad tank car or transport truck under GS 105-449.115 to include maintaining a copy of the shipping document at a centralized place of business for at least three years from the date of delivery. Modifies the language of the duties of the transporter related to delivery to no longer refer to printed specifications. Makes technical and clarifying changes. Allows accepting delivery only if the destination state on the shipping document is NC, which includes if changed to NC in accordance with the provisions of each respective statute (previously prohibited from accepting delivery with any other state as the destination state). Adds a new requirement for the receiver to maintain a copy of the shipping document for three years from the date of delivery. Makes similar changes to GS 105-449.115A regarding the duties of transporters and receivers of fuel by tank wagon. Adds to the duties of the transporter (1) delivery of the motor fuel to the person designated in the shipping document unless three conditions are satisfied, and (2) provision of a copy of the shipping document to the person to whom the motor fuel is delivered. Enacts duties of the person receiving the shipment to mirror those of receivers under GS 105-449.15, as amended. Effective January 1, 2022.
Amends GS 105-449.123 to replace the civil penalty provided for failure to properly mark dyed fuel storage facilities. Sets the penalty at $250, with each inspection that results in a finding of noncompliance constituting a separate and distinct offense (previously set at amounts equal to the tax at the motor fuel rate on the inventory held in the violating storage tank, or if that cannot be determined, the capacity of the storage tank). Applies to penalties assessed on or after January 1, 2022.
Subpart F. Local Government Tax Changes
Corrects a statutory cross-reference in GS 105-278, effective retroactively to June 19, 2020.
Makes the act effective on the date the act becomes law, unless otherwise provided.
Changes the act's titles.Agriculture, Alcoholic Beverage Control, Animals, Business and Commerce, Corporation and Partnerships, Development, Land Use and Housing, Property and Housing, Government, Public Safety and Emergency Management, State Agencies, Department of Commerce, Department of Revenue, Tax, Local Government, Health and Human Services, Health, Transportation
Summary date: Apr 20 2021 - View summary
House amendment makes the following changes to the 2nd edition.
Changes the act's long title.
Changes the expiration of the proposed changes to the definition set forth for the defined term Code under GS 105-228.90(b)(7), now providing for expiration for taxable years beginning on or after January 1, 2022 (was, January 1, 2021).
Effective for taxable years beginning on or after January 1, 2022 (was, January 1, 2021), reenacts GS 105-130.5(a)(32) and GS 105-153.5(c2)(20), which require corporate and individual taxpayers to add to the taxpayer's adjusted gross income the amount of any expense deducted under the Internal Revenue Code to the extent that payment of the expense results in forgiveness of a covered loan pursuant to section 1106(b) of the federal CARES Act (governing the Payment Protection Program/PPP) and the income associated with the forgiveness is excluded from gross income pursuant to section 1106(i) of the CARES Act, as they existed immediately before their repeal, as enacted and effective for taxable years beginning on or after January 1, 2020.
Adds a new deduction to GS 105-153.5(b), allowing a taxpayer to deduct the amount excluded from the taxpayer's gross income for unemployment compensation received by the taxpayer under section 9042 of the American Rescue Plan Act of 2021, effective for taxable years beginning on or after January 1, 2020.
Summary date: Mar 30 2021 - View summary
House committee substitute makes the following changes to the 1st edition.
Adds the following. Modifies the definition set forth for the defined term Code under GS 105-228.90(b)(7) to provide a distinct definition for the purpose of the amount of any expense deducted under the Code (defined as the Internal Revenue Code as it existed as of May 1, 2020) to the extent that payment of the expense results in forgiveness of a covered loan pursuant to section 1106(b) of the federal CARES Act, defining the term to mean the Internal Revenue Code as enacted as of January 1, 2021. Defines covered loan by federal statutory cross-reference to section 1106 of the CARES Act, to include certain small business loans under the Paycheck Protection Program/PPP. Effective for taxable years beginning on or after January 1, 2020, and expires for taxable years beginning on or after January 1, 2021.
Summary date: Mar 17 2021 - View summary
Identical to S 112, filed 2/17/21.
Effective for taxable years beginning on or after January 1, 2020, repeals GS 105-130.5(a)(32) and GS 105-153.5(c2)(20), which require corporate and individual taxpayers to add to the taxpayer's adjusted gross income the amount of any expense deducted under the Internal Revenue Code to the extent that payment of the expense results in forgiveness of a covered loan pursuant to section 1106(b) of the federal CARES Act (governing the Payment Protection Program/PPP) and the income associated with the forgiveness is excluded from gross income pursuant to section 1106(i) of the CARES Act. Effective for taxable years beginning on or after January 1, 2021, these provisions are reenacted as they existed immediately before the repeal.