GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2009
S 2
SENATE BILL 575
Finance Committee Substitute Adopted 5/6/09
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Short Title: Modify Corporate Apportionment Formula. |
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Sponsors: |
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Referred to: |
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March 12, 2009
A BILL TO BE ENTITLED
AN ACT to encourage the location and expansion of capital intensive companies in this state.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 105-130.4 is amended by adding a new subsection to read:
"(s1) All apportionable income of a capital intensive corporation shall be apportioned by multiplying the income by the sales factor as determined under subsection (l) of this section. A 'capital intensive corporation' is a corporation whose property factor as a percentage of the sum of the factors in the formula set out in subsection (i) of this section, including the doubling of the sales factor, exceeds seventy-five percent (75%). A corporation that is subject to this subsection must list on its return the property, payroll, and sales factors it used in determining whether it is a capital intensive corporation."
SECTION 2. G.S. 105-130.4(i) reads as rewritten:
"(i) All
apportionable income of corporations other than public utilities and
excluded corporations utilities, excluded corporations, and capital
intensive corporations shall be apportioned to this State by multiplying
the income by a fraction, the numerator of which is the property factor plus
the payroll factor plus twice the sales factor, and the denominator of which is
four. Provided, that where If the sales factor does not exist,
the denominator of the fraction shall be is the number of
existing factors and where if the sales factor exists but the
payroll factor or the property factor does not exist, the denominator of the
fraction shall be is the number of existing factors plus
one."
SECTION 3. This act is effective for taxable years beginning on or after January 1, 2010.