Bill Summaries: S715 (2021-2022 Session)

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  • Summary date: Apr 9 2021 - View summary

    Appropriates $300 million from the funds received under the American Rescue Plan Act of 2021, to the Department of Revenue (DOR) for a new Hospitality Business Recovery Program to provide a one-time grant to each qualifying hospitality business. Defines a a qualifying hospitality business as an entity that: (1) is subject to income tax; (2) experienced a reduction of at least 15% in sales tax collections resulting from the COVID-19 pandemic for at least one quarter in the 2020 tax year; (3) is classified in Sector 72 of the North American Industry Classification System; (4) has not received a notice of an overdue tax debt that has not been satisfied or otherwise resolved; (5) is a Count on Me NC business; and (6) has not received any other State or federal assistance. Allows DOR to accept applications until the appropriated funds have been fully awarded. Sets grant amounts at the lesser of: (1) $5,000, or (2) 10% of the amount of reduction in sales tax collections of the business due to the COVID-19 pandemic for the 2020 tax year when compared to collections for the 2019 tax year. Allows grant funds to be used for: (1) the business's rent or mortgage; (2) payroll; (3) uncompensated property damage; (4) business expenses for personal protective equipment; (5) local property taxes paid for the qualifying hospitality business location; or (6) any other operating expenses for which the qualifying hospitality business has not received State or federal COVID-19 relief funds. Requires the funds to be used by December 31, 2021, with unused portions returned to DOR. Conditions funding on a recipient business maintaining operations for at least six months following receipt of the grant; allows clawback of funds when this requirement is not fulfilled. 

    Amends GS 105-153.5 to allow a taxpayer to deduct from the taxpayer's adjusted gross income the amount of a grant under the Hospitality Business Recovery Program. Effective for taxable years beginning on or after January 1, 2021, expires for taxable years beginning on or after January 1, 2022.