GENERAL ASSEMBLY OF NORTH CAROLINA

EXTRA SESSION 2007

H                                                                                                                                                    1

HOUSE BILL 5

 

 

 

 

Short Title:     Credit for Retaining Jobs in Distressed Cty.

(Public)

Sponsors:

Representatives Thomas and Brubaker (Primary Sponsors).

Referred to:

Finance.

September 11, 2007

A BILL TO BE ENTITLED

AN ACT to provide a tax credit for businesses retaining job positions in certain distressed areas.

The General Assembly of North Carolina enacts:

SECTION 1.  Article 3A of Chapter 105 of the General Statutes is amended by adding a new section to read:

"§ 105‑129.8A.  Credit for retaining jobs in distressed areas.

(a)       Definitions. – The following definitions apply in this section:

(1)       Distressed area. – A county that is classified as a development tier one or two county pursuant to G.S. 143B‑437.08.

(2)       Employment level. – The total number of full‑time jobs and part‑time jobs converted into full‑time equivalences. A job is included in the employment level for a year only if that job is located within the distressed area for more than six months of the year. A job is located in a distressed area if more than fifty percent (50%) of the employee's duties are performed in this State.

(3)       Full‑time job. – A position that requires at least 1,600 hours of work per year and is intended to be held by one employee during the entire year.

(b)       Credit. – A taxpayer that has the same or more full‑time employees in distressed areas at the end of the taxable year when compared to the number of full‑time employees in distressed areas at the beginning of the taxable year is allowed a credit for retaining full‑time jobs in distressed areas. The amount of the credit is equal to fifty percent (50%) of the taxpayer's income tax liability for the previous taxable year.

(c)       Positions. – A position is located in an area if more then fifty percent (50%) of the employee's duties are performed in the area.

(d)       Transferred Jobs. – Jobs transferred from one area in the State to another area in the State are not considered new jobs for purposes of this section.

(e)       No Double Credit. – A taxpayer may not claim this credit and the credit allowed under G.S. 105‑130.46 for the same full‑time employee positions."

SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2007.