NORTH CAROLINA GENERAL ASSEMBLY

1961 SESSION

 

 

CHAPTER 1148

SENATE BILL 396

 

 

AN ACT RELATING TO DEDUCTIONS OF CONTRIBUTIONS FOR INCOME TAX PURPOSES.

 

The General Assembly of North Carolina do enact:

 

Section 1.  Subdivision (18) of G.S. 105‑147 is hereby rewritten to read as follows:

"(18)      a.        In the case of a nonresident individual, firm or partnership, the deductions allowed in this Section (with the exception of deductions allowed by Subdivisions (15) and (16) of this Section) shall be allowed only if and to the extent that they are connected with income arising from sources within the State; and the proper apportionment and allocation of the deductions with respect to sources of income within and without the State shall be determined under rules and regulations prescribed by the Commissioner of Revenue.

"b.        In the case of a nonresident individual, firm or partnership, deductions as provided for and as limited by Subdivisions (15) and (16) of this Section shall be allowed only if the donees shall have an office in this State and be actively engaged in this State in performing the functions for which the said donees were organized.

"c.        Corporations allocating a part of their total net income outside North Carolina under the provisions of G.S. 105‑134 may deduct from net income allocable to North Carolina contributions made to North Carolina donees qualified under Subdivisions (15) and (16) of this Section or made through North Carolina offices or branches of other donees qualified under the above-mentioned Subdivisions of this Section; provided, such deductions for contributions made to donees qualified under Subdivision (15) of this Section shall be limited in amount to five percent (5%) of the total income allocated to North Carolina as computed without the benefit of the deduction for contributions; and, provided further, that such contributions have not been included in the deduction as provided under Subdivisions (15) and (16) of this Section in arriving at the corporation's total net income subject to apportionment."

Sec. 2.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 3.  This Act shall be in full force and effect with respect to income years beginning on and after January 1, 1961.

In the General Assembly read three times and ratified, this the 22nd day of June, 1961.