A BILL TO BE ENTITLED AN ACT TO MAKE TECHNICAL AND CLARIFYING CHANGES TO VARIOUS REVENUE LAWS; TO MODIFY THE RENEWABLE ENERGY TAX CREDIT; AND TO MODIFY AND EXTEND THE HISTORIC REHABILITATION TAX CREDIT.
House committee substitute makes the following changes to the 2nd edition:
Changes the long title.
Amends GS 105-164.13(10) to clarify that the exemption for retail sales and use tax for fuel and piped natural gas used in laundering or pressing and cleaning does not apply to electricity.
Amends GS 105-130.3C to clarify the term "Net General Fund tax collected for a fiscal year" for the purpose of triggering the corporate income tax rate reduction. Provides that the term refers to the amount of net revenue reported by the Department of Revenue's June Statement of Collection as "Total General Fund Revenue" for the 12-month period that ended the previous June 30, less any large one-time, nonrecurring revenue as reported to the Fiscal Research Division and adjusted by any changes in net collections resulting from the suspension or termination of transfers out of General Fund tax collections. Makes technical and clarifying changes.
Amends GS 105-153.3 and 105-153.5(a)(1), to add and define the term surviving spouse for the purposes of the Individual Income Tax Act and to add that term to the standard deduction amount table in GS 105-153.5(a)(1). Effective for taxable years beginning on or after January 1, 2014.
Amends GS 105-134.1 and 105-134.6(a2) to add and define surviving spouse and add it to the standard deduction table found in GS 105-134.6(a2). Effective retroactively for taxable years beginning on or after January 1, 2012, and before January 1, 2014.
Amends GS 105-164.13, concerning retail sales and use tax, to provide that 50 percent of the sales price of a modular home or a manufactured home, including all accessories attached when delivered to the purchaser, is exempted from the retail sales and use tax. Effective September 1, 2014, applying to sales made on or after that date.
Amends GS 105-164.13B(a)(4) to delete a reference to a previously repealed statute. Adds language defining, for the purpose of the subdivision, a related person, meaning a person described in one of the relationships set out in section 267(b) or 707(b) of the Tax Code.
Amends GS 105-129.16A, concerning credit for investing in renewable energy property, creating a delayed sunset for taxpayers that have incurred more than 5 percent of the cost of constructing renewable energy property on or before January 1, 2016, extending the tax credit for such property until July 1, 2017 (previous sunset for tax credit was July 1, 2016). Makes conforming changes.
Amends GS Chapter 105, Article 3D, to rename the article the "Historic Rehabilitation Investment Program." Amends GS 105-129.35 to provide for a tax credit equal to the sum of certain specified percentages of qualified rehabilitation expenditures. Sets out three different allowable percentages: (1) tax credit worth 15 percent of qualified rehabilitation expenses up to $10 million and 10 percent for expenses between $10 million and $20 million, (2) a tax credit equal to 5 percent of qualified rehabilitation expenses not to exceed $20 million if the certified historic structure is in a development tier one or tier two area, and (3) a tax credit equal to 5 percent of qualified rehabilitation expenses not to exceed $20 million if the certified historic structure is in an eligible targeted investment site. Deletes language which provided for a 40 percent tax credit for rehabilitation of closed state training schools for juvenile offenders. Provides that a claim for a targeted investment site tax credit must include a copy of the eligibility certification previously submitted to the Secretary of Revenue. Adds definitions for use in the section, including development tier area, eligibility certification, and eligible targeted investment site. Amends the definition of State Historic Preservation Officer. Makes technical and conforming changes.
Amends GS 105-129.36 to set out two different allowable percentages of tax credits for the rehabilitation of a non-income-producing historic structure: (1) 20 percent of rehabilitation expenses incurred up to $200,000 over any 24-month period per discrete property parcel with an assessed value equal to or less than the statewide median home value and (2) 15 percent of rehabilitation expenses up to $200,00 over any 24-month period per discrete property parcel with an assessed value greater than the statewide median home value but equal to or less than 150 percent of the statewide median home value if the expenses exceed $10,000 within the 24 months and have not been on a single state-certified historic property for more than 5 years. Deletes language which provided for a 40 percent tax credit for rehabilitation of closed state training schools for juvenile offenders. Adds definitions for use in the section, including assessed value and statewide median home value. Amends the definition of rehabilitation expenses to clarify six expenses that are considered rehabilitation expenses, including expenses incurred for the exterior, structural elements, and heating or ventilation systems. Makes technical and conforming changes.
Amends GS 105-129.36A, rules and fees for the NC Historical Commission, making a technical change.
Amends GS 105-129.37 concerning tax credited and credit limitations, providing that the credits provided for in this Article are allowed against the imposed franchise tax and the gross premiums tax imposed in GS Chapter 105, Article 8B in addition to income taxes levied in GS Chapter 105, Article 4. Specifies limitations requirements on taking the credits. Provides that any unused portion of a credit allowed under these provisions can be carried forward for the next nine years. Deletes language that required a tax credit to be taken over five equal installments over five years. Makes technical and conforming changes.
Amends GS 105-129.38, renaming the section "Report; tracking." Adds language that requires the Department of Revenue to track the credits allowed to each taxpayer by use of a project number generated by the State Historic Preservation Office. Also requires the Department of Revenue to develop a method for reporting the project number on NC annual tax returns.
Requires the Department of Revenue to include in the economic incentives report (1) the total amount of tax credits awarded and the total amount of tax credits claimed against current taxes, by type of tax, during the relevant tax year and (2) the total amount of tax credits carried forward, by type of tax.
Amends GS 105-129.39, the sunset provision for this Article, extending the sunset date to January 1, 2020 (was, January 1, 2015).
Provides that all of the above provisions concerning historical rehabilitation tax credits become effective January 1, 2015, applying to qualified rehabilitation expenditures and rehabilitation expenses incurred on or after that date.
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