2007 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, 2006, on which Article 3A credits were claimed. Most of the returns processed in 2006 were submitted for the 2005 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.

This year’s reports reflect the first of what will be a multi-year shift in the number and types of available tax credits. As a result, three tables not included last year are presented.

2007 William S. Lee Article 3A Credit Report For Returns Processed During CY 2006

• Summary of Credits Generated
• Summary of Credits Taken
• Creating Jobs
• Machinery and Equipment Investment
• Creating Jobs in Development Zones
• Worker Training
• Research and Development
• Research and Development 3F Credits
• Investing in Central Office or Aircraft Facility
• Details of Credits Generated by Taxpayer
• Details of Other Credits Generated by Taxpayer
• Details of Credits Taken by Taxpayer
• Details of Other Credits Taken by Taxpayer