GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2011

H                                                                                                                                                   D

HOUSE DRH70203-MC-196  (04/18)

 

 

 

Short Title:        Business Tax Relief and Recruitment.

(Public)

Sponsors:

Representatives Wray, Crawford, Owens, and Wainwright (Primary Sponsors).

Referred to:

 

 

 

A BILL TO BE ENTITLED

AN ACT to increase the ability to compete with surrounding states for expanding and existing businesses by reducing the corporate income tax burden.

The General Assembly of North Carolina enacts:

REDUCE CORPORATE INCOME TAX

SECTION 1.(a)  G.S. 105-130.3 reads as rewritten:

" 105-130.3.  Corporations.

A tax is imposed on the State net income of every C Corporation doing business in this State. An S Corporation is not subject to the tax levied in this section. The tax is a percentage four and nine-tenths percent (4.9%) of the taxpayer's State net income computed as follows:income.

Income Years Beginning                 Tax

In 1997                                           7.5%

In 1998                                           7.25%

In 1999                                           7%

After 1999                                      6.9%."

SECTION 1.(b)  This section is effective for taxable years beginning on or after January 1, 2012.

Reduce corporate income tax Burden on manufacturers and operators of large datacenters

SECTION 2.(a)  G.S. 105-130.4(a) reads as rewritten:

"(a)       As used in this section, unless the context otherwise requires:

(4)        'Excluded corporation' means any corporation engaged in business as a one of the following:

a.         A building or construction contractor, acontractor.

b.         A securities dealer, or adealer.

c.         A loan company or acompany.

d.         A corporation that receives more than fifty percent (50%) of its ordinary gross income from intangible property.

e.         A corporation whose principal business in this State is manufacturing, assembly, or processing goods and materials.

f.          A corporation that operates a datacenter in this State in which the corporation has invested at least one hundred million dollars ($100,000,000) in private funds to construct the datacenter and the value of the property in service at the datacenter is at least fifty percent (50%) of the total value of property the taxpayer has in service in this State. For purposes of this subdivision, costs of construction include costs of acquiring and improving land for the datacenter, costs for renovations or repairs to existing buildings, and costs of equipping or reequipping the datacenter."

SECTION 2.(b)  G.S. 105-130.4(s1) is repealed.

SECTION 2.(c)  This section is effective for taxable years beginning on or after January 1, 2012.

Extend Sales tax refunds on building materials for large industrial projects

SECTION 3.(a)  G.S. 105-164.14B(f) reads as rewritten:

"(f)       Sunset. - This section is repealed for sales made on or after January 1, 2013.2016."

SECTION 3.(b)  This section is effective when it becomes law.

Extend Sunset on Tax Credits for Growing Businesses

SECTION 4.(a)  G.S. 105-129.82(a) reads as rewritten:

"(a)       Sunset. - This Article is repealed effective for business activities that occur on or after January 1, 2013.2016."

SECTION 4.(b)  This section is effective when it becomes law.