Title: S.L. 1975-661
Category: Introduced Bills

General Assembly of North Carolina	1975

NORTH CAROLINA GENERAL ASSEMBLY
1975 SESSION

CHAPTER 661
SENATE BILL 774

AN ACT TO LIMIT THE AMOUNT OF INDIVIDUAL AND CORPORATE INCOME TAX DEDUCTION FOR NORTH CAROLINA DIVIDENDS TO FIFTEEN THOUSAND DOLLARS ($15,000) AND TO AMEND CERTAIN INTANGIBLES TAX PROVISIONS TO CONFORM THERETO.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 105-147(7) as the same appears in Volume 2D of the 1974 Cumulative Supplement to the General Statutes of North Carolina is hereby amended by adding a sentence at the end thereof to read as follows:
"In no case shall the total amount of dividends that are deducted from a taxpayer's gross income as a result of the application of the provisions of this subsection be in excess of fifteen thousand dollars ($15,000) for the taxable year, except that this limitation shall not apply to dividends received from a corporation for which a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code is in effect."
Sec. 2.  G.S. 105-130.7 as the same appears in Volume 2D of the 1974 Cumulative Supplement to the General Statutes of North Carolina is hereby amended by adding a new subsection (6) to read as follows: "(6) In no case shall the total amount of dividends that are allowed as a deduction to a corporation as a result of the application of subsections (1) through (3) of this section be in excess of fifteen thousand dollars ($15,000) for the taxable year."
Sec. 3.  G.S. 105-204 is hereby amended by the addition of the statement "without regard to the fifteen thousand dollar ($15,000) limitation under subsection (7) of G.S. 105-147" immediately after the phrase "of G.S. 105-147" and immediately preceding the semicolon on line 15.
Sec. 4.  G.S. 105-203, as the same appears in Volume 2D of the 1974 Cumulative Supplement to the General Statutes of North Carolina, is hereby amended by the addition of the statement "without regard to the fifteen thousand dollar ($15,000) limitation under subsection (7) of G.S. 105-147 and G.S. 105-130.7" immediately after the number "105-147(7)" and immediately preceding the period on line 9.
Sec. 5.  This act shall be effective for income years beginning on and after July 1, 1975.
In the General Assembly read three times and ratified, this the 18th day of June, 1975.

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