Bill Summary for H 1116 (2011-2012)

Summary date: 

May 23 2012

Bill Information:

View NCGA Bill Details2011-2012 Session
House Bill 1116 (Public) Filed Wednesday, May 23, 2012
TO PROVIDE A TAX CREDIT FOR SMALL BUSINESSES THAT CREATE JOBS.
Intro. by Wray.

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Bill summary

Enacts new GS 105-129.16K to allow an eligible business a tax credit for each new eligible job created and filled by a qualified employee, equal to 6.2% of the employee’s wages. Requires the person to hold the new job for at least 12 months. Caps the credit allowed per job at $5,000 and caps the total credits allowed to a taxpayer under the statute at $200,000. Defines eligible business as one (1) with 500 or fewer full-time employees at the beginning of the tax year, and (2) who employed five or more full-time employees on December 31, 2011. Defines eligible new job as a job that pays at least $20,000. Defines qualified employee as one that is (1) unemployed or employed for less than 40 hours for the 180 days prior to employment; or (2) was in military service in a combat zone after September 11, 2001, and was discharged or released from duty during the 5 years before employment. Defines new job and qualified employee and several other terms. Details a business’s eligibility for the credit following a change in ownership, and states that the acquisition of a business creates new eligibility in the acquiring taxpayer, as detailed. Makes conforming changes to GS 105-129.17(a). Effective for tax years beginning on or after January 1, 2013.

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