AN ACT TO PROVIDE FUNDS TO ASSIST SMALL BUSINESSES.
Includes whereas clauses. Appropriates $250 million from the General Fund to the Department of Commerce (Department). Provides that the funds do not revert. States the purpose of the act. Establishes the COVID-19 Small Business Recovery Program (Program). Charges the Department with Program administration. Provides for the Department to provide a one-time grant to each qualifying business, defined to be an entity that is subject to income tax, with annual receipts for the 2019 tax year of $8 million or less when combined with annual receipts of all related persons, that had a reduction of 25% or more in sales tax collections resulting from the COVID-19 pandemic for the 2020 tax year when compared to collections for the 2019 tax year. Provides for grant application procedures, with applications accepted until appropriated funds have been fully awarded. Caps the grant amount at the lesser of $250,000 or the amount of reduction in sales tax collection of the qualifying business resulting from the COVID-19 pandemic for the 2020 tax year when compared to collections for the 2019 tax year. Caps the total of all grants awarded under the Program at $250 million. Requires verification of qualifying businesses with the Department of Revenue, and authorizes the Department of Revenue to disclose tax-related information for verification. Deems the Department's grant determinations final. Conditions grants upon a recipient business maintaining operations for at least six months following receipt, with the Department directed to clawback a proportionate amount of the grant for any portion of the six months in which the recipient does not maintain business operations.
Establishes an income tax deduction for taxpayers under GS 105-153.5 for the amount granted to a taxpayer during the taxable year under the Small Business Recovery Program. Effective for taxable years beginning on or after January 1, 2021, and expires for taxable years beginning on or after January 1, 2022.
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