2021 Economic Incentives Report

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Reports of Credits Taken or Refunds Claimed Number of Taxpayers Credits Taken/ Refunds Claimed Sunset for Generating Credits or Refundable Purchases Statute DOR Tax Forms Required
Machinery and Equipment Investment (Article 3A) 55 1,302,245 January 1, 2007 § 105-129.9 NC-478; NC-478B
Research and Development (Article 3A) 4 17,475 January 1, 2007 § 105-129.10 NC-478
Investing in Central Office or Aircraft Facility (Article 3A) 0 0 January 1, 2007 § 105-129.12 NC-478; NC-478E
Technology Commercialization (Article 3A) 1 654 January 1, 2007 § 105-129.9A NC-478
Substantial Investment in Other Property (Article 3A) 4 41,279 January 1, 2007 § 105-129.12A NC-478
Renewable Energy Property (Article 3B) 1,398 153,501,625 January 1, 2016 § 105-129.16A NC-478; NC-478G
Constructing Renewable Fuel Facilities (Article 3B) 5 12,396 January 1, 2014 § 105-129.16D NC-478
Biodiesel Producers (Article 3B) 0 0 January 1, 2014 § 105-129.16F NC-478
Work Opportunity (Article 3B) 13 19,598 January 1, 2014 § 105-129.16G NC-478
Donating Funds for Purchases of Renewable Energy Property (Article 3B) 34 18,023 January 1, 2016 § 105-129.16H NC-478
Facility for Manufacturing Renewable Energy Property (Article 3B) 27 715,985 January 1, 2014 § 105-129.16I NC-478
Investing in Major Recycling Facility (Article 3C) 2 1,940,336 None § 105-129.27 CD-425
Historic Rehabilitation (Article 3D):
Income-Producing Property 90 1,874,208 January 1, 2015 § 105-129.35 D-400TC or CD-425
Non-Income-Producing Property 143 964,170 January 1, 2015 § 105-129.36 D-400TC or CD-425
N.C. Research and Development (Article 3F) 175 7,026,031 January 1, 2016 § 105-129.55 NC-478; NC-478I
Interactive Digital Media (Article 3F) 9 163,302 January 1, 2014 § 105-129.56 NC-478; NC-478I
Mill Rehabilitation (Article 3H):
Income-Producing Property 23 29,173,375 January 1, 2015 § 105-129.71 D-400TC or CD-425
Non-Income-Producing Property 19 186,987 January 1, 2015 § 105-129.72 D-400TC or CD-425
Creating Jobs (Article 3J) 107 3,721,738 January 1, 2014 § 105-129.87 NC-478; NC-478J
Investing in Business Property (Article 3J) 135 17,747,285 January 1, 2014 § 105-129.88 NC-478; NC-478K
Investing in Real Property (Article 3J) 7 88,237 January 1, 2014 § 105-129.89 NC-478; NC-478L
Railroad Intermodal Facility (Article 3K) 1 1,045,895 January 1, 2038 § 105-129.96 NC-478
Historic Rehabilitation (Article 3L):
Income-Producing Property 191 11,227,157 January 1, 2024 § 105-129.105 NC-Rehab
Non-Income-Producing Property 142 942,149 January 1, 2024 § 105-129.106 NC-Rehab
Summary of Art. 3L credits taken and carried forward
NC State Ports Authority Charges 0 0 January 1, 2014 § 105-130.41 & § 105-151.22 NC-478
Cigarette Exportation 0 0 January 1, 2018 § 105-130.45 NC-478
Cigarette Exportation while Increasing Employment 0 0 January 1, 2018 § 105-130.46 NC-478
Film and Entertainment Grant/ Film Production Credit 6 19,917,528 None § 143B-437.02A Administered by NC Dept. of Commerce
Economic Incentive Refunds (Sales & Use Tax) (§ 105-164.14A.):
Passenger Air Carrier 0 0 January 1, 2016 § 105-164.14A.(a)(1) E-588B
Major Recycling Facility 0 0 None § 105-164.14A.(a)(2) E-585S
Business in Low-Tier Area 0 0 January 1, 2014 § 105-164.14A.(a)(3) E-585S
Motorsports Team or Sanctioning Body 2 13,292 January 1, 2024 § 105-164.14A.(a)(4) E-588A
Professional Motorsports Team 12 806,160 January 1, 2024 § 105-164.14A.(a)(5) E-585S
Analytical Services Business 0 0 January 1, 2014 § 105-164.14A.(a)(6) E-588D
Railroad Intermodal Facility 0 0 January 1, 2038 § 105-164.14A.(a)(7) E-585S
Transformative Projects 0 0 None § 105-164.14A.(a)(8) NC-19
Certain Industrial Facilities Refunds (Sales & Use Tax) 0 0 January 1, 2014 § 105-164.14B.(b) E-585S
Sales & Use Refunds Supplement 10 730,588

NOTES

Exception to sunset for Article 3H Mill Rehabilitation tax credits:

  • a qualifying rehabilitated railroad station with at least $10 million in qualified expenditures incurred between Jan. 1, 2019 and Dec. 31, 2021

Exception to sunset for credit for Renewable Energy Property:

  • extension of sunset to Jan. 1, 2017 for taxpayers who met the requirements of G.S. 105-129.16A(f).
  • extension of sunset to May 5, 2017 for renewable energy property utilizing renewable biomass resources.

The Film Production Credit was repealed for qualifying expenses occuring on or after January 1, 2015 (G.S. 105-130.47 & 105-151.29).

Exception to sunset for credit for Constructing Renewable Fuel Facilities:

  • extension of sunset to Jan. 1, 2017 for taxpayers who sign a letter of commitment as of Sept. 1, 2013, and begin construction on or before Dec. 1, 2013.

Exceptions to Article 3A sunsets:

  • extension of sunset to Jan. 1, 2008 for taxpayers who submit a letter of commitment to create jobs or make new investments to the Department of Commerce.
  • extension of sunset to Jan. 1, 2010 for an interstate air courier that has a real estate lease of at least 100 acres for a term in excess of 15 years.
  • extension of sunset to Jan. 1, 2010 for a taxpayer that qualifies as an eligible major industry.
  • extension of sunset to Jan. 1, 2010 for certain taxpayers located in a Development Zone.

Exceptions to Article 3A carryforwards:

  • large investments can have 20 years of carryforwards.
  • taxpayers who invest at least $50 million in real property, machinery and equipment, or central office or aircraft facility property can have 10 years.

Exception for Article 3J carryforward:

  • If the Secretary of Commerce certifies that the taxpayer’s investment will exceed $150 million, carryforwards may be taken for 20 years.

For Article 3A and Article 3J, installments begin in the year after the credit was generated.

Sunset dates for S&U economic incentive refunds indicate the initial date for which purchases are deemed ineligible for refund.

The estimates of credits taken do not include the effect of G.S. 105-130.5(a)(10). This provision effectively increases the income tax liability of corporations by the amount of credit multiplied by the tax rate.

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