AG 1999 08 30 - Laserfiche WebLink

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A. Over,ziew of bill · Corporate tax reduction to 6.9% over four years · New investment tax credit for machinery 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 utifity account for most distressed counties · increases per job and per project maximums for Industrial Development Fund · Assc~ed tax reductions which affect business B. Philosophy underlying the credits · Recruit new compenies 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 · Aisc focus on job quality -- wage requirement · Greater incentives in more distressed parts of the state for job creation, investment, or worker training C. Bas[cs cf the credits · Inves:ment 'Fax Credit: provides credit of 7% of cost of machinery and equipment placed in se~fce in North Carolina, subject to meeting requirements Job Creation Tax Credit: provides job creation tax credit of $12.500, $4000, $3000, $10(:;0 or $500 for each new job over five created. · Research and Development Tax Credit: provides credit equal to 5% of research and deveicpment 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 Pro.certy Tax Credit: .provides credit of 4.5% for cost of business property, up tc S 100,000 maximum, for property capitalized under the tax code.