Enacts new GS 105-153.11. Defines community-based development organization, low-income, and moderate-income. Authorizes individual taxpayers who donate money to a community-based development organization (as defined) a credit against the taxes under this statute of up to 33% of the amount donated. Requires community-based development organizations to keep records of all donations it receives to provide funds for defined purposes, and the amount used for those purposes. Provides three limitations for the tax credit, including a prohibition against also deducting the donation as a charitable contribution. Authorizes unused portions of the credit to be carried forward to the succeeding year. Requires the taxpayer to maintain and submit information required by the Secretary of Revenue (Secretary) to claim the tax credit, including making records available to the Secretary for inspection. Directs the Department of Revenue (Department) to include six listed types of information in the economic incentives report required under GS 105-256. Directs the Department to establish criteria for the certification of an entity as a community-based development organization, and to contract with the NC Community Development Initiative or its successor for the application of the criteria for and certification of qualifying entities. Provides requirements for application and certification, including that certification expires after two years, with an option for renewed certification. Requires community-based development organizations to file an annual report by January 31 of each year, and provides requirements for the report. Requires a taxpayer to file an application by October 15 for the tax credit under this statute with the Secretary to be eligible for the credit. Prohibits the Secretary from accepting applications filed after October 15 of the year in which the donation is made. Limits the total amount of all tax credits allowed to taxpayers under this statute in a calendar year to $5 million. If the amount of tax credits claimed for donations exceeds this amount, the Secretary shall allow a portion of the credits claimed by allocating the maximum amount in proportion to the size of the credit claimed by each taxpayer. Effective until January 1, 2022, at which point this statute is repealed.
Enacts new GS 105-130.49, which is identical to new GS 105-153.11, but for corporate taxpayers instead of individual taxpayers.
Effective for taxable years beginning on or after January 1, 2017.
Bill H 885 (2017-2018)Summary date: Apr 25 2017 - More information