AG 1999 03 15 - Laserfiche WebLink

Home Browse Search

A. Overview of bill · Corporate tax reduction to 6.9% over four years · New investment tax credit for machineW and equipment · New worker training tax credit · New research and development tax credit · Expands job creation tax credit statewide · New business property tax credit · New utility account for most distressed counties · increases per job and per project maximums for Industrial Development Fund · Assorted tax reductions which affect business B. Philosophy underlying the credits · Recruit new companies into North Carolina, or encourage existing companies to add jobs or production capacity, upgrade worker training, invest in product related research · Added capacity, improved competitiveness underlies the various requirements · Also focus on job quality -- wage requirement · Greater incentives in more distressed parts of the state for job creation, investment, or worker training C. Basics of the credits · Investment Tax Credit: provides credit of 7% of cost of machinery and equipment plsced in service in North Carolina, subject to meeting requirements · Job Creation Tax Credit: provides job creation tax credit of $12,500, $4000, $3000, $1000 or $500 for each new job over five created. · Research and Development Tax Credit: provides credit equal to 5% of research and development expenses eligible under the federal R&E credit incurred in NC · Worker Training Tax Credit: provides credit up to $500 per worker ($1000 in Tier One) for training for eligible employees · Business Property Tax Credit: .provides credit of 4.5% for cost of business property, up to $100,000 maximum, for property capitalized under the tax code.