Bill Summaries: H751 VARIOUS ECONOMIC DEVELOPMENT INCENTIVES (NEW).

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  • Summary date: Jun 30 2011 - View Summary

    AN ACT TO EXPAND THE APPLICATION OF THE ONE PERCENT, EIGHTY DOLLAR EXCISE TAX ON CERTAIN MACHINERY AND EQUIPMENT TO SPECIALIZED EQUIPMENT USED AT A PORT FACILITY AND TO MACHINERY USED AT A LARGE MANUFACTURING AND DISTRIBUTION FACILITY; TO PROVIDE TIER ONE TREATMENT FOR PORT ENHANCEMENT ZONES; TO RETAIN AND ENCOURAGE INVESTMENT IN ECONOMICALLY DISTRESSED TIMES TO REMAIN ELIGIBLE TO TAKE AN INSTALLMENT OF A CREDIT EARNED UNDER THE BILL LEE ACT; AND TO AMEND THE AUTHORIZATION TO ISSUE SPECIAL INDEBTEDNESS FOR AN EDUCATIONAL BUILDING AT APPALACHIAN STATE UNIVERSITY. Summarized in Daily Bulletin 4/6/11, 6/16/11, and 6/17/11. Enacted June 24, 2011. Effective June 24, 2011, except as otherwise provided.


  • Summary date: Jun 17 2011 - View Summary

    Senate amendments, adopted 6/16/11, make the following changes to 3rd edition. Amendment #1 rewrites the definition of large manufacturing and distribution facility in proposed GS 105-187.51D as facilities, as further defined, which have an investment of at least $80 million (previously $100 million), and which will achieve an employment level of at least 550 within five years (previously 1,000). Amends the expiration provision of GS 105-129.12A (credit for substantial investment in other property) to clarify that the credit expires and the taxpayer may not take any remaining installments of the credit in one of the years in which the installment of a credit accrues and by which the taxpayer is required to have created 200 new jobs at the property if (1) the total number of employees employed at the property with respect to which the credit is claimed is less than 200 and (2) the taxpayer has failed to maintain at least 125 employees at the property and, within two years of the date the employment fell below 200, to invest at the property the greater of $5 million or at least twice the value of the remaining credit installments. Makes other conforming changes.
    Amendment #2 changes the effective date of those provisions concerning Port Enhancement Zones to taxable years beginning on or after January 1, 2013 (previously July 1, 2013).


  • Summary date: Jun 16 2011 - View Summary

    Senate committee substitute, reported in on 6/15/11, makes the following changes to the 2nd edition. Part I of the act is substantially similar to the previous edition, concerning expanding the excise tax on mill machinery, except changes the definition of large manufacturing and distribution facility in proposed GS 105-187.51D to include facilities, as further defined, which have an investment of at least $100 million (previously $125 million), and which will achieve an employment level of at least 1,000 within five years (previously 1,130 within two years). Makes clarifying changes to the subsection concerning forfeiture. Adds provisions concerning definitions, refund, and forfeiture under the statute. This part of the act is effective July 1, 2013, and applies to purchases made on or after that date.
    Part 2 of the act concerns Port Enhancement Zones. Creates new GS 143B-437.012, which defines Port Enhancement Zone as an area that meets the following: (1) is comprised of one or more contiguous census tracts, census block groups, or both, in the most recent federal decennial census; (2) all of the area is located within 25 miles of a state port and is capable of being used to enhance port operations; (3) every census tract and census block group that comprises the area has at least 11% of households with incomes of $15,000 or less. Provides that the area of a county that is included in one or more port enhancement zones must not exceed 5% of the total area of the county. Provides the method and information required for the Secretary of Commerce to make a designation of whether or not an area is a port enhancement zone, as defined. Directs the Secretary to annually publish a list of all port enhancement zones. Makes conforming changes to various statutes to provide tier one treatment for port enhancement zones. Effective for taxes imposed for taxable years beginning on or after July 1, 2013.
    Part 3 of the act concerns encouraging investment to retain Article 3A installments. Amends the expiration provision of GS 105-129.12A (credit for substantial investment in other property) to provide that the credit expires and the taxpayer may not take any remaining installments of the credit in one of the years in which the installment of a credit accrues and by which the taxpayer is required to have created 200 new jobs at the property if (1) the total number of employees employed at the property with respect to which the credit is claimed is less than 200 and (current law only includes requirement #1) (2) the taxpayer has failed, within two years of the date that the employment fell below 200, to invest at the property at least twice the value of the remaining credit installments. Effective for taxable years beginning on or after January 1, 2009.
    Part 4 of the act concerns educational building at Appalachian State University. Amends subdivision (a1) of Section 29.13 of SL 2007-323, as amended, to allow for the acquiring and improving (previously limited to only acquiring) adjacent real property related to the completion of a new educational building at Appalachian State University.
    Makes conforming change to the bill title. Unless otherwise noted, effective when the act becomes law.


  • Summary date: Jun 15 2011 - View Summary

    House committee substitute, reported in on 6/14/11, makes the following changes to 1st edition. Deletes proposed amendment to GS 105-187.51(a), concerning the inclusion of certain manufacturing plants located at port facilities to those to which a privilege tax is imposed. Rewrites GS 105-187.51B to impose the privilege tax on a company located at a ports facility for waterborne commerce that purchases specialized equipment to be used at the facility to unload or process bulk cargo to make it suitable for delivery to and use by manufacturing facilities. Enacts new GS 105-187.51D to impose, and detail, a privilege tax on large manufacturing and distribution facilities that purchase mill machinery, distribution machinery, or parts or accessories for mill machinery or distribution machinery for storage, use, or consumption in North Carolina. Provides that the tax is 1% of the sale price of the machinery, part, or accessory purchased, and provides for a maximum tax of $80 per article. Provides that the statute expires for sales occurring on or after July 1, 2018. Effective July 1, 2013, and applies to purchases made on or after that date. Changes title to AN ACT TO EXPAND THE APPLICATION OF THE ONE PERCENT, EIGHTY DOLLAR EXCISE TAX ON CERTAIN MACHINERY AND EQUIPMENT TO SPECIALIZED EQUIPMENT USED AT A PORT FACILITY AND TO MACHINERY USED AT A LARGE MANUFACTURING AND DISTRIBUTION FACILITY.


  • Summary date: Apr 7 2011 - View Summary

    As title indicates.