AN ACT TO MAKE CERTAIN TAX CHANGES, TO EXTEND CERTAIN TAX BENEFITS, AND TO APPROPRIATE FUNDS FROM THE COLLECTIONS ASSISTANCE FEE SPECIAL FUND TO THE DEPARTMENT OF REVENUE. SL 2019-237. Enacted November 1, 2019. Effective November 1, 2019, except as otherwise provided.
Bill Summaries: H399 EXTEND TAX CREDITS/OTHER FINANCE CHANGES. (NEW)
Summary date: Nov 13 2019 - View Summary
Summary date: Oct 23 2019 - View Summary
Conference report makes the following changes to the 5th edition.
Changes the scope of the proposed changes to GS 105-130.5 (concerning corporate income tax) and GS 105-153.5 (concerning individual income tax), which provide for an income tax deduction for economic incentives received pursuant to GS 143B-437.012 (Job Maintenance and Capital Development Fund); Part 2G (Job Development Investment Grant Program); or Part 2H (One North Carolina Fund), Article 10, GS Chapter 143B. Now makes the provisions apply to amounts received by a taxpayer on or after January 1, 2019 (was, amounts received by a taxpayer pursuant to an economic incentive agreement entered into on or after January 1, 2019).
Adds the following new provisions.
Amends GS 105-164.13(61a) to exempt from sales tax self-service vehicle washes or vacuums (was, self-service car washes or vacuums) and limited-service vehicle washes.
Amends GS 105-164.3 to define gross sales, as the term is used in Article 5 concerning sales and use tax, to mean the sum total of the sales price of all sales of tangible personal property, digital property, and services (was, of all sales of items). Further amends the statute to define item to include digital property (rather than certain digital property).
Summary date: Oct 8 2019 - View Summary
Senate committee substitute to the 4th edition deletes all content (except as indicated) and replaces it with the following.
Amends GS 105-153.5(a) and (c2) to allow, for taxable years 2014 through 2018 (was, beginning on or after 2014) a taxpayer, who elected to take the income tax exclusion under section 408(d)(8) of the Internal Revenue Code (Code) for a qualified charitable distribution from an individual retirement plan by a person who has attained the age of 70 and a half, to deduct the amount that would have been allowed as a charitable deduction under section 170 of the Code had the taxpayer not elected to take the income exclusion.
Amends GS 105-130.5 (concerning corporate income tax) and GS 105-153.5 (concerning individual income tax) to provide for an income tax deduction for the amount received by a taxpayer as an economic incentive pursuant to GS 143B-437.012 (Job Maintenance and Capital Development Fund), Part 2G (Job Development Investment Grant Program), or Part 2H (One North Carolina Fund), Article 10, GS Chapter 143B. Specifies that the corporate deduction is to the extent included in federal taxable income. Applies to amounts received by a taxpayer pursuant to an economic incentive agreement entered into on or after January 1, 2019.
Retains changes to GS 105-129.110 made in the previous edition.
Amends GS 105-129.71 by adding new (a1) providing that a taxpayer who is allowed a credit for making qualified rehabilitation expenditures of at least $10 million with respect to a certified rehabilitation of an eligible railroad station is allowed a credit equal to 40% of the qualified rehabilitation expenditures. Prohibits the credit from being claimed for a taxable year beginning prior to January 1, 2021. Requires the credit to be taken in two equal installments on returns filed for taxable years 2021 and 2022; the sum of the installments is equal to the credit amount allowed for qualified rehabilitation expenditures incurred in taxable years 2019, 2020, and 2021. Defines an eligible railroad station as a site in this state that meets all of the seven listed criteria, including: it was used as a manufacturing facility and either was used as a railroad station or is located adjacent to a site that is or was used as a railroad station; it is a designated local landmark as certified by a city on or before June 30, 2019; and it is located in a development tier one or tier two area. Amends GS 105-129.74 to prohibit a taxpayer claiming a credit under Article 3H (Mill Rehabilitation Tax Credit) from also claiming a credit under Article 3L (Historic Rehabilitation Tax Credits Investment Program). Specifies that the rules and fee schedule adopted under GS 105-129.107 apply to Article 3H. Amends GS 105-129.75 by adding that for credits allowed under new GS 105-129.71(a1) for rehabilitation of eligible railroad stations: (1) the qualified rehabilitation expenditures must be incurred on or after January 1, 2019, and before January 1, 2022; and (2) Article 3H expires and the tax credit under (a1) may not be claimed for rehabilitation projects not completed and placed in service before January 1, 2022.
Extends the sunset provisions of the following statutes from January 1, 2020, to January 1, 2024: GS 105-164.13(11b) (sales tax exemption for sales of aviation gasoline and jet fuel to an interstate air business for use in a commercial aircraft); GS 105-164.13(65) and (65a) (sales tax exemption for certain sales to a professional motorsports racing team or a related member of a team for competition use, or an engine or part to build or rebuild an engine under an agreement to a professional motorsports team or related member of a team for competition use); and GS 105-164.14A(a)(4) and (5) (concerning tax refunds for a motorsports team or sanctioning body for taxes paid on aviation gasoline or jet fuel used to travel to or from a motorsports event in the state, or from the state, or to this state, and taxes paid on certain tangible personal property).
Amends GS 143-215.104A by extending the sunset on the Dry-Cleaning Solvent Cleanup Act of 1997 from January 1, 2022, to January 1, 2032, with three named exceptions, which are already in place under current law. Provides that any dry-Cleaning Solvent Assessment Agreement or Dry-Cleaning Solvent Remediation Agreement in force as of January 1, 2032 (was, 2012) continues to be governed by Part 6 of Article 21A of GS Chapter 143 as though those provisions had not been repealed. Amends GS 105-164.44E (Transfer to the Dry-Cleaning Solvent Cleanup Fund) to extend the sunset from July 1, 2020, to July 1, 2030. Extends the sunset on Article 5D, Dry-Cleaning Solvent Tax, from January 1, 2020, to January 1, 2030.
Sets the rate to be used in calculating the insurance regulatory charge for the 2020 calendar year at 6.5%.
Appropriates the following amounts from the Collection Assistance Fee Special Fund to the Department of Revenue: (1) $12.5 million in nonrecurring funds for 2019-20 for costs associated with tax system operations and maintenance upgrades and (2) $4.4 million in nonrecurring funds in each fiscal year of the 2019-21 biennium to contract with a vendor to perform identify theft and tax fraud analysis using the Government Data Analytics Center.
Provides that if any of this act and GS 143C-5-4 (enactment deadline; procedures to be followed when the Current Operations Appropriations Act does not become law prior to the end of certain fiscal years) are in conflict, the provisions of this act prevail.
Provides that if H 966 (2019 Appropriations Act) becomes law, then the following Sections are repealed: 12.14 (Dry Cleaning Solvent Program Extension), 29.1 (Insurance Regulatory Fee), 41.2 (Income Exclusion For IRA Distributions to Charities by Taxpayers Age 70 1/2 or Older), 41.6 (Deduction for Amounts Received as Economic Incentives), 41.7 (Extend Historic Rehabilitation Tax Credit and Reinstate the Mill Rehabilitation Tax Credit), 41.8 (Extend Sales Tax Exemption for Qualifying Airlines), and 41.9 (Extend Sales Tax Exemptions For Professional Motorsports Teams).
Makes conforming changes to the act's titles.
Summary date: Jun 4 2019 - View Summary
House committee substitute to the 3rd edition makes the following changes.
Amends the qualifications to be met in order to receive the disaster relief bonus under GS 105-129.105 to require that the qualified rehabilitation expenditure be incurred no more than five years after the gubernatorial disaster declaration that resulted in (was, no more than five years after the onset of the natural disaster resulting in) the area being declared a disaster area.
Summary date: May 29 2019 - View Summary
House committee substitute to the 2nd edition makes the following changes.
Changes the effective date provisions of the proposed changes to GS 105-129.105, concerning credit for rehabilitating income-producing historic structures, now providing that the changes are effective for taxable years beginning on or after January 1, 2020 (was January 1, 2019).
Modifies the proposed changes to GS 105-129.110, which extend the sunset provisions for Article 3L, Historic Rehabilitation Tax Credits Investment Program, now providing for the Article's expiration for qualified rehabilitation expenditures and expenses incurred on or after January 1, 2024 (was January 1, 2030). For qualified rehabilitation expenditures and expenses incurred prior to January 1, 2024, provides for the Article's expiration for property not placed in service by January 1, 2032 (rather than January 1, 2038).
Makes conforming changes to the act's long title.
Summary date: Apr 3 2019 - View Summary
House committee substitute to the 1st edition cites the act as the Historic Preservation Act of 2019, and changes the act's long and short titles.
Summary date: Mar 20 2019 - View Summary
Amends GS 105-129.105, concerning the tax credit available for making qualified rehabilitation expenditures for a certified historic structure located in the State. Modifies the base rates, setting the credit amount at 15% for qualified rehabilitation expenses of $0 to $15 million (was, $0 to $10 million) and 10% for qualified expenses of $15 million to $25 million (was, $10 million to $20 million). Modifies the 5% development tier and targeted investment bonuses available under the statute, now capping the qualified rehabilitation expenditures at $25 million (was, $20 million). Creates a new bonus for disaster relief, providing for a credit in the amount of 5% of qualified rehabilitation expenditures not exceeding $25 million if the certified historic structure is located in a disaster area and the qualified rehabilitation expenditure is incurred no more than five years after the onset of the natural disaster resulting in the area being declared a disaster area. Defines disaster area to include counties subject to a Type II or Type III gubernatorial disaster declaration as a result of a natural disaster. Effective for taxable years beginning on or after January 1, 2019.
Amends GS 105-129.110, extending the sunset provisions by ten years for Article 3L, Historic Rehabilitation Tax Credits Investment Program, now providing for the Article's expiration for qualified rehabilitation expenditures and expenses incurred on or after January 1, 2030. For qualified rehabilitation expenditures and expenses incurred prior to January 1, 2030, provides for the Article's expiration for property not placed in service by January 1, 2038.