Senate committee substitute makes the following changes to the 3rd edition.

Amends GS Chapter 105, adding new Article 3L, North Carolina New Markets Jobs Act of 2014, to create a state level reduction of tax that mirrors the federal New Market Tax Credit (NMTC) under Section 45D of the Internal Revenue Code (IRC). Provides a state level below the line reduction of tax (reduction) to investors who commit capital for a seven-year term in the form of loans or quality equity investments to borrowers in low-income communities.

Defines reductionto mean a subtraction from the total amount of state premium tax liability made (1) after all additions and deductions have been made to the gross premium amount and (2) after the appropriate rates of tax have been applied. Provides that a reduction has the same property and contractual protections as a credit.

Defines quality equity investmentas a long-term debt security issued by or an equity investment in a qualified community development entity that (1) is acquired at its original issuance for cash after the effective date of this act; (2) has at least 85 percent of its purchase price used by the qualified community development entity to make qualified low-income community investments in qualified state low-income community businesses by the first anniversary of the initial reduction allowance date;and (3) is designated by the qualified community development entity as a qualified equity investment and certified by the Department of Commerce (Department).

Defines the term reduction allowance dateas the date on which any qualified equity investment is initially made and each of the following six anniversary dates. Provides that the applicable percentage rates for the reduction allowance date are 0 percent for the first two reduction allowance dates, 12 percent for the next three reduction allowance dates, and 11 percent for the following two reduction allowance dates.

Defines the term qualified community development entityas having the same meaning as provided in section 45D of the IRC of 1986, as amended, provided that the entity meets certain specifications.

Also defines qualified active low-income community business and additional terms as used in this act.

Provides that the total statewide investment amount that may qualify for the tax credit is $208,333,333 with a maximum investment in any one business of $7 million. Directs the Department to certify $208,333,333 in qualified equity investment authority under two allocations, one for the Rural Reserve and one for the Statewide Reserve, each as described in new GS 105-129.109(a), as established in this act.

Provides additional details on the tax credit. Sets out the procedure for a qualified community development entity to apply to the Department for an equity investment or long-term debt security to be designated as a qualified equity investment. Allows disallowance of the reduction under certain circumstances. Requires that applicants pay a refundable performance fee. Requires the Secretaryto issue binding letter rulings in response to applicants requesting an interpretation of the law to a specific set of facts. Provides that an entity claiming a credit for qualified equity investment is not required to pay any additional retaliatory tax as a result of claiming the credit. Prohibits a certified qualified equity investment from being decertified unless the statute's requirements have not been met. Sets out conditions for decertification. Provides that no qualified community development entity is entitled to pay any affiliate of such entity any fees in connection with any activity under this Article prior to decertification of all qualified equity investment issued to the entity. Does not prohibit a qualified community development entity from allocating or distributing income earned by it to the affiliates or paying reasonable interest on amounts lent to the entity by such affiliates.

Enacts new GS 105-129.109, which provides for the allocation of the $208,333,333 of qualified equity investments eligible for certification by the Department under new GS 105-129.102. Divides the $208,333,333 investment pool into two funds: (1) allocates $156.25 million to the Rural Reserve to credit investments located in rural census tracts in a county designated as Tier 1 or Tier 2 by the NC Department of Commerce and (2) allocates $52,083,333 to the Statewide reserve to credit investments made anywhere within the state.

Enacts new GS 105-129.110 to prohibit a qualified active low-income community business and any of its affiliates that receive a qualified low-income community investment from a qualified community development entity that issues qualified equity investments under this Article from directly or indirectly (1) owning or acquiring an ownership interest in a qualified community development entity or a member of or affiliate of that entity or (2) making a loan to or investing in a qualified community development entity, or a member of or affiliate of that entity. Provides additional specifications regarding new capital requirements.

Enacts new GS 105-129.111 to specify the reporting requirements for a qualified community development entity that issues qualified equity investments under this Article.

The provisions of this Article apply to qualified equity investments made on or after January 2, 2015.

Clarifies that Part I of this act, Jump-Start Our Business Start-Ups Act, expires on July 1, 2017.

Amends the short and long title to reflect the changes in the content of the bill.