Bill Summary for H 117 (2015-2016)

Summary date: 

Feb 25 2015

Bill Information:

View NCGA Bill Details2015-2016 Session
House Bill 117 (Public) Filed Tuesday, February 24, 2015
AN ACT TO ENACT THE NORTH CAROLINA COMPETES ACT.
Intro. by S. Martin, Jeter, Collins, Steinburg.

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Bill summary

Part I.

Amends Section 15.19(a1) of SL 2013-360, concerning the Job Development Investment Grant Program (Program). Provides that regardless of the provisions of subsection (c) of GS 143B-437.52, for July 1, 2013 through December 31, 2015, the maximum total amount for grants awarded under the Program, including the amounts transferred to the Utility Account under GS 143B-437.61, is $45 million.

Changes the title of Part 2G of Article 10 of GS Chapter 143B to Job Growth Reimbursement Opportunities-People Program (was, Job Development Investment Grant Program).Directs the Revisor of Statutes to make the necessary conforming changes to reflect the renaming of the Program as provided in this section.

Repeals GS 143B-437.52(b), which gave priority in selecting between applicants for grants under the Program to a project located in an Eco-Industrial Park (Park) certified under GS 143B-437.08 over a comparable project not located in a certified Park.

Amends GS 143B-437.53(c) to provide that for the purposes of this subsection (Health Insurance), a business provides health insurance for employees if it pays at least 50% of the premiums for health care coverage for its employees.

Amends GS 143B-437.57(a) to require that each community economic development agreement must include a requirement that the business maintain employment levels in North Carolina at whichever is greater: (1) the level of employment on the date of the application, or (2) the level of employment on the date of the award.

Amends GS 143B-437.62 to provide that the authority of the Committee to award new grants expires January 1, 2020 (was, January 1, 2016).

Part II.

Changes the title of Part 2H of Article 10 of GS Chapter 143B to Job Growth Reimbursement Opportunities-Capital Program (was, One North Carolina Fund) and changes the title of Part I to Job Growth Reimbursement Opportunities-Capital Small Business Program (was, One North Carolina Small Business Program).Directs the Revisor of Statutes to make the necessary conforming changes to reflect the renaming as provided in this section.

Part III.

Directs $20 million of the funds appropriated to the Department of Commerce for the 2014-15 fiscal year to be transferred to the Site Infrastructure Development Fund for uses consistent with GS 143B-437.02, Site infrastructure development. Requires the Office of State Budget and Management along with the Office of the State Controller and the Department of Commerce to transfer the unencumbered cash balance of the Job Catalyst Fund to the Site Infrastructure Development Fund.

Amends the catchline of GS 143B-437.02 to read as 'Site Acceleration Fund', was 'Site infrastructure development'. Further amends the section to provide that a business is considered to be providing health insurance, for the purposes of this subsection, if it pays at least 50% of the premiums for health coverage (was, if it pays at least 50% of the premiums for health coverage or exceeds the minimum provisions of the basic care plan of coverage recommended by the Small Employer Carrier Committee pursuant to GS 58-50-125).

Directs the Revisor of Statutes to make the necessary conforming statutory changes necessary to the General Statutes to reflect the renaming of the Site Infrastructure Development Fund to the Site Acceleration Fund.

Part IV.

Amends GS 105-130.4(s1), concerning the allowable allocation and apportionment of income for corporations that meet certain conditions of this section. Deletes language which previously provided that if a corporation fails to invest $1 billion dollars in private funds within nine years, then the benefit of GS 105-130.4(s1) and the corporation must apportion income as it would otherwise be required to without the benefit of this section. Enacts new language that provides that if a corporation fails to satisfy the specified conditions of GS 105-130.4(s1), any benefit provided under GS 105-130.3(s1) will be forfeited and income must be apportioned as otherwise required. Additionally provides that the corporation which forfeits the benefits will also be liable for all past taxes which had been previously avoided, plus interest at the specified rate. Requires that all past taxes and interest be due 30 days after any benefit has been forfeited. If such payment is not received specified penalties will be enforced. Further provides that if a corporation does forfeit the benefits then the period for proposing an assessment of any tax due as a result of such forfeiture is three years after the date of discovery of the forfeiture.Deletes certain conditions that are required to be met for a corporation to be considered a 'qualified capital intensive corporation', including language which detailed how income should be apportioned by multiplying the income by specified sales factor and that certain facilities be located in counties that are designated as development tier one or tier two area at the time construction of the facility began. Clarifies that the wage standard condition in GS 105-130.4(s1)(5)is satisfied if the corporation pays an average weekly wage at least equal to the lesser of 110% of the average wage for all insured private employers in the State and 90% of the average wage for all insured private employers in the county. Makes clarifying changes.

Repeals Section 4 of SL 2009-54, which provided that qualified capital intensive corporations are not eligible for grants from the Job Development Investment Grant or the One North Carolina Fund.

The above portions of this Part are effective when it becomes law and applies to corporations receiving a written determination from the Secretary of Commerce on or after that date.

Amends Section 6 of SL 2009-54, deleting language that provided that GS 105-130.4(s1) will be repealed for taxable years beginning on or after January 1, 2019 if no corporation has qualified as a qualified capital intensive corporation under GS 105-130.4(s1). Effective when it becomes law.

Part V.

Amends GS 105-164.14A(a)(1) to extend the sales tax refund for fuel purchased by passenger air carriers until January 1, 2020 (was, repealed for purchases made on or after January 1, 2016).

Part VI.

Amends GS 105-164.13 to provide that the sales of electricity for use at a qualifying datacenter and datacenter support equipment that is to be located and used at the qualifying datacenter are exempt from the tax imposed by GS Chapter 105, Article 5, Sales and Use Tax. Specifies what types of capitalized property is considered to be "datacenter-support equipment" for tax purposes.

Amends GS 105-164.3, the definitions section for the the sales and use tax article, adding language to definequalifying datacenteras a datacenter that (1) meets the wage standard and health insurance requirements of GS 143B-437.08A and (2) has been certified by the Secretary of Commerce, by way of written determination, that at least $75 million in private funds has or will be invested in the datacenter by the owners, users, or tenants within five years of the date the same make the first real or tangible property investment in the datacenteron or after January 1, 2012. Makes conforming technical changes to the statute.

Sets out in GS 105-164.13(55a) when the tax exemption can be forfeited including: the level of investment specified above is not timely, investment is timely but specific datacenter support equipment is not located or used at the qualifying datacenter, or portions of the electricity are not used at the datacenter. Specifies that a taxpayer that forfeits such an exemption is liable for all past taxes avoided as a result of the exemption, computed from the date the taxes would have been due if the exemption was not allowed, plus interest established pursuant to GS 105-241.21. Sets out formula for calculating the interest due depending on the way in which the forfeiture was triggered.

This part is effective July 1, 2015, applying to sales made on or after that date.

Part VII.

Unless otherwise indicated, effective when the act become law.

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