2006 William S. Lee Act Credit Report

The Department of Revenue is required to publish a report on William S. Lee Act credits each year under G.S. 105-129.6(b). As required, the report includes information on all NC-478 returns processed during the 12-month period ending December 31, 2005, on which Article 3A credits were claimed. Most of the returns processed in 2005 were submitted for the 2004 tax year, but some were submitted for previous tax years. The Department’s Policy Analysis and Statistics Division prepared the report.

The information provided in this report reflects the unaudited figures shown by taxpayers on their tax forms. As such, some of the credits shown may have been taken in error by taxpayers or the amounts may be incorrect as the result of math errors by the taxpayer. In all cases where the Policy Analysis and Statistics Division identified a likely taxpayer error, they alerted the Department’s Examinations Division to the potential problem. In addition, the database from which this report was generated is available to the Examination Division for use in identifying taxpayers who should be audited.

In this year’s report, as in the past two reports, there are several credit generation amounts that appear to be the result of significant math errors by taxpayers. As in the past, the cumulative figures in this report reflect the apparent taxpayer error, but a footnote is included indicating which credits generated appear to be overstated.

2006 William S. Lee Article 3A Credit Report For Returns Processed During CY 2005

• Summary of Credits Generated
• Summary of Credits Taken
• Creating Jobs
• Machinery and Equipment Investment
• Creating Jobs in Development Zones
• Worker Training
• Research and Development
• Investing in Central Office or Aircraft Facility
• Details of Credits Generated by Taxpayer
• Details of Credits Taken by Taxpayer