Raises the temporary unemployment insurance tax credit for small business to 50% of contributions to the State Unemployment Insurance Fund (was 25%). Raises the threshold to qualify as a small business to $2.5 million of cumulative gross receipts for a taxable year (currently, $1 million). Repeals this increase for tax years beginning on or after January 1, 2012. Effective for taxable years beginning on or after January 1, 2011.
Effective January 1, 2011, raises the threshold to qualify as a small business for research and development tax credits to $2.5 million of annual receipts, and raises the amount of the credit under GS 129.55 to 5% (was 3.25%). Extensively rewrites and recodifies Part 5 of Article 4 of GS Chapter 105, Tax incentives for qualified business investments, to make clarifying and conforming changes. Adds a deduction to GS 105-134.6 for exclusion of gain on qualified business investments. Extends the sunset for qualified business investment tax credits to January 1, 2016 (was, January 1, 2013). Raises the ceiling for qualified business investment tax credits to $9.5 million (was, $7.5 million).
Adds a new subpart to GS 105-163 providing an irrevocable election to exclude gain on qualified business investments. Makes this exclusion inapplicable to certain pass-through entities. Provides for recapture of previously claimed qualified investment credits. Defines qualified investments as securities issued on or after January 1, 2012, by qualified businesses (as presently defined in GS 105-163.010A), among other requirements and limitations on the exclusion. Effective for taxable years beginning on or after January 1, 2011.
Amends GS Chapter 143 to allow informal contracting for repairs and renovations to state facilities that are estimated to cost less than $2 million, with the majority of funds furnished from the Repairs and Renovations Reserve Account. Sets out procedures for such informal contracting, including three written quotes and solicitations directed to at least two small contractors, as defined by the bill. Provides a preference for awarding contracts to such small contractors. Provides additional details on the informal contracts. Effective July 1, 2011.