NORTH CAROLINA GENERAL ASSEMBLY

1975 SESSION

 

 

CHAPTER 764

SENATE BILL 369

 

 

AN ACT TO PROVIDE TAX BENEFITS FOR CAPITAL INVESTMENTS IN RECYCLING AND RESOURCE RECOVERING FACILITIES OR EQUIPMENT.

 

The General Assembly of North Carolina enacts:

 

Section 1.  G.S. 130-166.18 is amended by adding a new subdivision (3) at the end of subdivision (2) thereof to read as follows:

"(3)      Develop and promulgate standards for qualification as a 'recycling or resource recovering facility' or as 'recycling or resource recovering equipment' for the purpose of special tax classifications or treatments, and to certify as qualifying those applicants which meet the established standards. The standards shall be so developed as to qualify only those facilities and equipment exclusively used in the actual resource recovering or recycling process and shall exclude any incidental or supportive facilities and equipment."

Sec. 2.  G.S. 105-122(b) as it appears in the 1974 Cumulative Supplement to Volume 2D of the General Statutes is amended by inserting the following at the end of the second sentence of the first paragraph:

"The cost of purchasing and installing equipment or constructing facilities for the purpose of recycling or resource recovering of or from solid waste shall be treated as deductible for the purposes of this section upon condition that the corporation claiming such deductible liability shall furnish to the secretary a certificate from the Department of Human Resources certifying that the Department of Human Resources has found as a fact that the equipment or facility has actually been purchased, installed or constructed, that it is in conformance with all rules and regulations of the Department of Human Resources, and that recycling or resource recovering is the primary purpose of the facility or equipment."

Sec. 3.  G.S. 105-130.10 as it appears in the 1974 Cumulative Supplement to Volume 2D of the General Statutes is amended by rewriting it to read as follows:

"§ 105-130.10.  Amortization of air-cleaning devices, waste treatment facilities and recycling facilities. — In lieu of any depreciation allowance, at the option of the corporation, a deduction shall be allowed for the amortization, based on a period of 60 months, of the cost of:

(a)        any air-cleaning device, sewage or waste treatment plant, including waste lagoons, and pollution abatement equipment purchased or constructed and installed which reduces the amount of air or water pollution resulting from the emission of air contaminants or the discharge of sewage, industrial waste, or other polluting materials or substances into the outdoor atmosphere or streams, lakes, rivers, or coastal waters. The deduction provided herein shall apply also to the facilities or equipment of private or public utilities built and installed primarily for the purpose of providing sewer service to residential and outlying areas. The deduction provided for in this subsection shall be allowed by the Secretary of Revenue only upon the condition that the corporation claiming such allowance shall furnish to the secretary a certificate from the Department of Natural and Economic Resources certifying that the Environmental Management Commission has found as a fact that the air-cleaning device, waste treatment plant, or other pollution abatement equipment purchased or constructed and installed as above described has actually been constructed and installed and that such construction, plant or equipment complies with the requirements of said Environmental Management Commission with respect to such devices, construction, plants or equipment, that such device, plant or equipment is being effectively operated in accordance with the terms and conditions set forth in the permit, certificate of approval, or other document of approval issued by the Environmental Management Commission, and that the primary purpose thereof is to reduce air or water pollution resulting from the emission of air contaminants or the discharge of sewage and waste and not merely incidental to other purposes and functions.

(b)        purchasing and installing equipment or constructing facilities for the purpose of recycling or resource recovering of or from solid waste. The deduction provided for in this subsection shall be allowed by the Secretary of Revenue only upon the condition that the corporation claiming such allowance shall furnish to the secretary a certificate from the Department of Human Resources certifying that the Department of Human Resources has found as a fact that the equipment or facility has actually been purchased, installed or constructed, that it is in conformance with all rules and regulations of the Department of Human Resources, and that recycling or resource recovering is the primary purpose of the facility or equipment.

The deduction herein provided for shall also be allowed as to plants or equipment constructed or installed after January 1, 1955, but only with respect to the undepreciated value of such plants or equipment."

Sec. 4.  G.S. 105-130.5(b)(6) as it appears in the 1974 Cumulative Supplement of Volume 2D of the General Statutes is amended by inserting the words "and recycling and resource recovering facilities or equipment" following the word "plant" and preceding the word "as" in the second line thereof.

Sec. 5.  G.S. 105-147(13) is rewritten to read as follows:

"(13)    In lieu of any depreciation allowance pursuant to this section, at the option of the taxpayer, an allowance with respect to the amortization, based on a period of 60 months, of the cost of:

a.         Any air-cleaning device, sewage or waste treatment plant, including waste lagoons and pollution abatement equipment purchased or constructed and installed which reduces the amount of air or water pollution resulting from the discharge of sewage and industrial wastes or other polluting materials or substances into streams, lakes, or rivers, or the emission of air contaminants into the outdoor atmosphere. The deduction provided herein shall apply to the facilities or equipment of private or public utilities built and installed primarily for the purpose of providing sewer service to residential and outlying areas. The deduction provided for the items enumerated in this subparagraph shall be allowed by the secretary only upon the condition that the person or firm claiming such allowance shall furnish to the secretary a certificate from the Board of Water and Air Resources certifying that said board has found as a fact that the waste treatment plant, air-cleaning device, or air or water pollution abatement equipment purchased or constructed and installed as above described has actually been constructed and installed and that such plant or equipment complies with the requirements of said board with respect to such plants or equipment, that such plant, device, or equipment is being effectively operated in accordance with the terms and conditions set forth in the permit, certificate of approval, or other document of approval issued by the Board of Water and Air Resources, and that the primary purpose thereof is to reduce air or water pollution resulting from the emission of air contaminants or the discharge of sewage and waste and not merely incidental to other purposes and functions.

b.         Purchasing and installing equipment or constructing facilities for the purpose of recycling or resource recovering of or from solid waste. The deduction provided for the items enumerated in this subparagraph shall be allowed by the Secretary of Revenue only upon the condition that the person claiming such allowance shall furnish to the secretary a certificate from the Department of Human Resources certifying that the Department of Human Resources has found as a fact that the equipment or facility has actually been purchased, installed or constructed, that it is in conformance with all rules and regulations of the Department of Human Resources, and that recycling or resource recovering is the primary purpose of the facility or equipment.

      The deduction herein provided for shall also be allowed as to plants or equipment constructed or installed before January 1, 1955, but only with respect to the undepreciated value of such plants or equipment."

Sec. 6.  G.S. 105-275(8) as it appears in the 1974 Cumulative Supplement of Volume 2D of the General Statutes is amended by:

(1)        Designating the current language as paragraph "a." and redesignating subdivisions "a.", "b.", "c", and "d." as "1.", "2.", "3." and "4.", respectively; and

(2)        Adding a new paragraph at the end thereof to read as follows:

"b.        Real or personal property that is used or, if under construction, is to be used exclusively for recycling or resource recovering of or from solid waste, if the Department of Human Resources furnishes a certificate to the tax supervisor of the county in which the property is situated stating the Department of Human Resources has found that the described property has been or will be constructed or installed, complies or will comply with the regulations of the Department of Human Resources, and has, or will have as its primary purpose recycling or resource recovering of or from solid waste."

Sec. 7.  This act shall become effective January 1, 1976.

In the General Assembly read three times and ratified, this the 24th day of June, 1975.