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 amendment makes the following changes to the 4th edition.
Amends GS 105-129-35 to clarify that the federal income tax credit to a taxpayer for rehabilitating an income-producing historic structure is equal to the sum of the applicable amounts indicated as to the (1) base amount, (2) development tier bonus, and (3) targeted investment bonus.
Effective for taxable years beginning on or after January 1, 2015, makes identical changes, as follows, to GS 105-130.47 (Corporation Income Tax, Article 4, Part 1, GS Chapter 105) and GS 105-151.29 (Individual Income Tax, Article 4, Part 2, GS Chapter 105) regarding the tax credit for qualifying expenses of a production company. Caps the total amount of all tax credits allowed to taxpayers under GS 105-130.47 or GS 105-151.29 for qualifying expenses in a tax year at a maximum of $40 million. Directs the Secretary of Revenue (Secretary) to calculate the total amount of all tax credits claimed under GS 105-130.47 and GS 105-151.29. Provides that if the total amount of all the tax credits claimed exceeds $40 million, the Secretary must apportion the tax credits claimed by allocating the maximum tax credit amount in proportion to the size of the credit claimed by each taxpayer. Declares that the Secretary's allocations are final.
Provides that subject to the tax credit cap, a taxpayer that meets the specified requirements to qualify for the tax credit is allowed a credit equal to 22.5% (was, 25%) of the taxpayer's qualifying expenses. Specifies that the applicable requirements are that the taxpayer: (1) files a timely return and does not apply for an extension of time to file a return; (2) is a production company; (3) has qualifying expenses of at least $250,000 with respect to a production; and (4) the taxpayer's taxable year is a calendar year.
Requires that a taxpayer claiming a credit underGS 105-130.47 or GS 105-151.29 for productions that have a production credit must acknowledge all of the following in the production credits, in addition to acknowledging the NC Film Office and the regional film office responsible for the geographic area where the filming occurred (current law): (1) the identity of each location in the state in which the filming of the production occurred; and (2) the phrase "Filmed in North Carolina" and a logo provided by the NC Film Office.
Includes sunset provisions, which repealGS 105-130.47 and GS 105-151.29 for qualifying expenses occurring on or after January 1, 2016 (was, January 1, 2015).
Calls for the 2014-15 Work Plan for the Program Evaluation Division (Division) of the General Assembly to include a study to evaluate the income tax credits for qualifying expenses of a production company provided in GS Chapter 105. Directs the Division toconsiderthefollowingin its study: (1) the return on investment of the credit to the state, (2) methods to increase the benefit to the state resulting from the credit, and (3) programs in other states, best practices in other states, and methods used by other stated to compete for film investment in the state. Requires the Division to submit its findings and recommendations to the the Joint Legislative Program Evaluation Oversight Committee and revenue Laws Study Committee on or before February 1, 2016. Effective when the act becomes law.
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