Reenacts Article 3J, Tax Credits for Growing Businesses, of GS Chapter 105 as it existed immediately before its repeal on January 1, 2014, except for GS 105-129.80, GS 105-129.82, GS 105-129.87, GS 105-129.88, and GS 105-129.90. Retitles the Article as Tax Credits for Agrimanufacturing.
Adds to the defined terms set forth in GS 105-129.81. Defines agrimanufacturing to mean the subset of manufacturing that processes raw materials and intermediate products derived from the agricultural sector to make them usable as food, feed, fiber, fuel, or industrial raw material. Defines qualifying agrimanufacturer to mean a taxpayer primarily engaged in agrimanufacturing at one or more locations for which the Secretary of Commerce has made a written determination of the amount of private funds that has been invested by the taxpayer on or after January 1, 2021, and that amount is in excess of $1.5 million, excluding investments in real or business property prior to January 1, 2021. Deletes the following terms: agrarian growth zone, air courier services, aircraft maintenance and repair, company headquarters, customer service call center, electronic shopping and mail order houses, establishment, hub, information technology and services, motorsports facility, motorsports racing team, port enhancement zone, research and development, urban progress zone, warehousing, and wholesale trade.
Modifies GS 105-129.83 to now provide for a tax credit with respect to activities occurring at an establishment whose primary activity is agrimanufacturing (previously, enumerated several types of businesses covered under the Article's credit). Eliminates provisions restricting company headquarters's eligibility under the Article. Limits the credit to development tier two areas (was tier two and tier three areas) so long as the taxpayer meets the wage standard, and to development tier one areas without having to meet the wage standard. Establishes that jobs in a development tier two area satisfy the wage standard if they pay an average weekly wage that is equal to 90 percent of the lesser of the average wage for all insured private employers in the State and the average wage for all insured private employers in the county (previously the standard for certain businesses in a development tier one area). Maintains the eligibility requirements for the taxpayer to provide health insurance for all of the full-time jobs established with respect to the credit claimed. Now specifies that the taxpayer provides health insurance if it pays at least 50% of the premiums for health insurance coverage that equals or exceeds the minimum requirements for small group benefit plans under State or federal law. Eliminates provisions regarding credit installments or carry forward credits. Establishes that a taxpayer forfeits a credit if the taxpayer fails to timely create the number of required new jobs or required level of investment (was limited to forfeiture for investment in real property under GS 105-129.89, as repealed). Makes further conforming changes.
Makes conforming changes to GS 105-129.84 to provide for the credits allowed under the Article against income taxes levied under Article 4 only, and to eliminate provisions regarding carry forwards of credit. Makes conforming changes to GS 105-129.85 and GS 105-129.86, concerning fees and reports, and substantiation, respectively.
Enacts GS 105-129.90, establishing the credit for agrimanufacturing, upon satisfaction of the eligibility requirements set out in GS 105-129.83, to be the qualifying agrimanufacturer's cumulative amount of income taxes for the taxable year for a number of years, based on the job creation and investment threshold requirements in a development tier one or tier two area during the taxable year, with a three-year credit for 25 jobs and $1.5 million investment threshold, a five-year credit for 50 jobs and $2.5 million threshold, and a ten-year credit for 100 jobs and $5 million threshold. Provides detailed provisions regarding job threshold and investment threshold calculation, providing for situations where a taxpayer creates new jobs at more than one eligible establishment; job location qualification; ineligibility of transferred jobs in the calculation; and qualifications of business or real property under the credit.
Effective for taxable years beginning on or after January 1, 2021.
Bill S 27 (2021-2022)Summary date: Jan 28 2021 - View summary