NEW MARKETS JOBS ACT.

View NCGA Bill Details2013-2014 Session
House Bill 682 (Public) Filed Tuesday, April 9, 2013
A BILL TO BE ENTITLED AN ACT TO ENACT NEW MARKETS JOBS INITIATIVE.
Intro. by R. Moore, Moffitt, Murry.

Status: Serial Referral To Finance Added (House Action) (Apr 15 2013)

Bill History:

H 682

Bill Summaries:

  • Summary date: Apr 9 2013 - More information

    Identical to S 522 filed 3/28/13.

    Adds new Article 3L, NC New Markets Job Growth Investment Initiative, to GS Chapter 105 to provide a tax credit of amounts ranging from 0 to 12% for qualified equity investments. Defines quality equity investment as an equity investment in, or long-term debt security issued by, a qualified community development entity that (1) is acquired after the act's effective date at its original issuance for cash; (2) has at least 85% of its purchase price used to make qualified low-income community investments in qualified state low-income community businesses, as specified; and (3) is designated as a qualified equity investment and certified by the Department of Commerce (Department). Defines qualified active low-income community business, qualified community development entity, and additional terms. Provides details on the tax credit and directs the Department to certify $500 million qualified equity investment. 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 recapture of the credit under certain circumstances. Requires that applicants pay a refundable performance fee. Requires the Secretary to 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.

    Effective for taxable years beginning on or after January 1, 2013, and applies to qualified equity investments made on or after November 1, 2013.


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