House committee substitute replaces the contents of the 1st edition with the following.
States legislative findings regarding the impacts the COVID-19 emergency has had on the dairy industry.
Directs $4,104,000 be transferred from the Coronavirus Relief Reserve to the Coronavirus Relief Fund (both established in SL 2020-4, 2020 COVID-19 Recovery Act). Appropriates the funds to the Department of Agriculture and Consumer Services (DACS) for 2020-21. Provides for the availability of the funds until December 30, 2020, with unexpended funds required to revert at the end of the fiscal year.
Allocates the funds to the NC Dairy Stabilization and Growth Fund to provide grants to either compensate eligible dairy producers for losses incurred as a result of the collapse of dairy prices or to improve the resiliency and adaptability of the dairy supply chain to future pandemics. Defines eligible producer to mean a Grade A milk producer who can demonstrate to the satisfaction of DACS that the producer is in compliance with federal Grade A milk regulations. Requires funds to comply with identified US Treasury guidance or subsequent Congressional act.
Directs DACS to develop policies and procedures for grant disbursement, including four specified requirements. Requires monthly grant payments to eligible dairy producers for any month in which the baseline price exceeds the announced price, as those terms are defined by the act. Provides for the calculation of payments based on the difference in prices and the weight produced by the producer each month beginning with April 2020 until the earlier of either the funds being expended or December 30, 2020. Caps grants at $25,000 per producer per month. Provides for partial grants or supplementation of grant funds in the event the appropriations are insufficient to make the full grant payment to each producer each month. Allows DACS to use up to 1% of funds appropriated for administrative expenses.
Makes the general provisions of Part I of SL 2020-4 applicable to the funds and requires the Office of State Budget and Management to include the funds in the report required under Section 1.7 of that act.
Requires DACS to report to the specified NCGA committee and division by February 1, 2021, on the use of funds by grant recipients.
Changes the act's titles.
Bill Summaries: H1070 EMERGENCY GRANTS FOR CERTAIN MILK PRODUCERS. (NEW)
Bill H 1070 (2019-2020)Summary date: Jun 16 2020 - View Summary
Bill H 1070 (2019-2020)Summary date: May 12 2020 - View Summary
Identical to S 713, filed 5/7/20.
Enacts Article 3M, Milk Producer Tax Credit, of GS Chapter 105. Allows producers of qualifying milk, defined as Grade "A" milk, a tax credit for each calendar year quarter in which the USDA uniform price is less than the announced production price promulgated by the Board of Agriculture. Applies to taxpayers who produce milk in the State for wholesale and for shipment on a weekly or more frequent basis. Details credit calculation for a taxable year with quarter multipliers ranging from $8,750 to $15,000 based on annual pounds of qualifying milk produced ranging from 500,000 pounds to over 7.5 million pounds. Requires the taxpayer to elect for the credit to be applied against franchise tax or income tax. Specifies that the tax is refundable. Requires necessary record keeping for substantiation and places the burden of credit eligibility upon the taxpayer. Adds that the Department of Revenue must include the following information in the economic incentives report required by GS 105-256, itemized by credit and by taxpayer: the number of taxpayers that took the credits allowed under new Article 3M; the volume of milk produced with respect to which the credits were taken; and the total cost to the General Fund of the credits taken. Repeals the entire Article on January 1, 2025, effective for milk produced on or after that date.
Directs the Revenue Laws Study Committee to biennially review the milk producer tax credit to determine if the economic benefit provided outweighs the cost of the tax expenditure.
Effective for taxable years beginning on or after January 1, 2020.
Amends GS 106-814 to require the Board of Agriculture (Board) to quarterly promulgate the announced production price for milk in the State. Requires the Board to consider the average price of milk in the top five states where milk is imported to NC, the average transportation cost of importing milk, and the cost of production in NC.