House committee substitute amends the 1st edition as follows.
Makes the following revisions to Part 5, Tax Credits for Qualified Business Investments, of Article 4, GS Chapter 105 as reenacted, effective for taxable years beginning on or after January 1, 2021. Expands the definition of qualified business venture to include a business registered with the Secretary of State that primarily engages in commercialization of information technology including hardware and software, health care technology including medical devices and pharmaceuticals, biotechnology, consumer goods, energy technology, food technology, and agricultural technology (was, limited to registered businesses primarily engaged in manufacturing, processing, warehousing, wholesaling, research and development, or a service-related industry). Amends subsection (b1) of GS 105-163.011, which provides for a tax credit for pass through entities that commit capital to qualified businesses directly in an amount equal to 25% of the investment, to exclude pass-through entities that commit capital under management in excess of $7.5 million rather than $5 million.
Bill Summaries: H 680 REENACT QUALIFIED BUSINESS VENTURE CREDIT.
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Bill H 680 (2021-2022)Summary date: Jun 22 2021 - View Summary
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Bill H 680 (2021-2022)Summary date: Apr 26 2021 - View Summary
Reenacts Part 5, Tax Credits for Qualified Business Investments, of Article 4, GS Chapter 105 as it existed immediately before its repeal in 2014, effective for taxable years beginning on or after January 1, 2021. Revises and adds to the Part as follows. Adds diversity business to the Part's defined terms, defined as a qualified business, as previously defined, that is headquartered in a development tier one or two area, and/or is headquartered in a designated qualified opportunity zone under specified Internal Revenue Code sections, as of the date the investment is made. Establishes a credit bonus, providing for the credit allowed under the Part to be increased by 10% of the credit amount if the amount generating the credit is invested in a qualified business that is a diversity business, as now defined. Increases the cap set for credits allowed to taxpayers under GS 105-163.012 for investments made in a calendar year from $7.5 million to $10 million. Revises the Part's sunset, now providing for the Part's repeal effective for investments made on or after January 1, 2025.