Reenacts Article 3J, "Tax Credits for Growing Businesses," of Subchapter I of GS Chapter 105, as it existed immediately before its repeal (Article 3J sunset effective for business activities that occurred on or after January 1, 2014). This act rewrites Article 3J and amends the sunset date, repealing Article 3J effective for business activities that occur on or after January 1, 2020.
Amends GS 105-129.81, adding a definition for "small business," meaning a taxpayer that employs no more than 50 eligible employees during the taxable year and that is engaged in a business other than retail trade, as specified, or food services and drinking places, as specified. Substantially deletes the number of terms defined in GS 105-129.81, providing definitions only for the following terms in addition to "small business:" (1) agrarian growth zone, (2) development tier, (3) long-term unemployed worker, and (4) urban progress zone.
Amends GS 105-129.83 to provide that a taxpayer is eligible for a credit under Article 3J with respect to company headquarters only if the taxpayer creates at minimum 75 new jobs at the company headquarters within a 24-month period. Provides that meeting this job creation requirement makes the taxpayer eligible for credits under this Article with respect to company headquarters for three taxable years beginning with the year in which the job creation requirement is satisfied. Deletes all other provisions of GS 105-129.83 regarding eligibility for a credit under Article 3J.
Amends GS 105-129.84 to provide that any unused portion of a credit allowed under GS 105-129.87 may be carried forward for the succeeding five years, unless a longer carry-forward period applies.
Amends GS 105-129.85(b) to delete requirements that the economic incentives report contain provisions regarding the cost and development tier area of business property and real property investment regarding which credits were generated and which credits were taken. Deletes provisions regarding credits for investments in business property (GS 105-129.88) and investment in real property (GS 105-129.89).
Amends GS 105-129.87, which lists credits allowed to a qualifying businesses, to add that a taxpayer that is a small business, meets the eligibility requirements in GS 105-129.83, as amended in this act, and satisfies the threshold requirement for new job creation in GS 105-129.87(b) is allowed a credit for creating jobs. Clarifies that jobs located in an urban progress zone or agrarian growth zone, created by a taxpayer other than a small business, are allowed a credit increased by an additional $1,000 per job. Specifies that if the job is located in an urban progress zone or agrarian growth zone and filled by a resident of that zone or by a long-term unemployed workeror is created by a small business, then the credit is increased by an additional $2,000 per job.
Effective for taxable years beginning on or after January 1, 2015.
Status: Ref to the Com on Commerce and Job Development, if favorable, Finance (House Action) (Mar 23 2015)
Bill H 320 (2015-2016)Summary date: Mar 19 2015 - More information