2013 Economic Incentives Report
2013 Economic Incentives - Overview
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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 |
|---|---|---|---|---|---|
| Creating Jobs (Article 3A) | 209 | 4,121,708 | January 1, 2007 | § 105-129.8 | NC-478; NC-478A |
| Machinery and Equipment Investment (Article 3A) | 638 | 31,422,010 | January 1, 2007 | § 105-129.9 | NC-478; NC-478B |
| Research and Development (Article 3A) | 56 | 2,844,528 | January 1, 2007 | § 105-129.10 | NC-478 |
| Worker Training (Article 3A) | 26 | 53,192 | January 1, 2007 | § 105-129.11 | NC-478; NC-478E |
| Investing in Central Office or Aircraft Facility (Article 3A) | 18 | 288,497 | January 1, 2007 | § 105-129.12 | NC-478 |
| Technology Commercialization (Article 3A) | 4 | 4,804 | January 1, 2007 | § 105-129.9A | NC-478 |
| Substantial Investment in Other Property (Article 3A) | 2 | 679,450 | January 1, 2007 | § 105-129.12A | NC-478 |
| Development Zone Projects (Article 3A) | 0 | 0 | January 1, 2007 | § 105-129.13 | NC-478 |
| Business Property (Article 3B) | 270 | 80,823 | January 1, 2002 | § 105-129.16 | NC-478 |
| Renewable Energy Property (Article 3B) | 1,494 | 27,904,722 | January 1, 2016 | § 105-129.16A | NC-478; NC-478G |
| Non-Hazardous Dry-Cleaning (Article 3B) | 0 | 0 | January 1, 2006 | § 105-129.16C | NC-478 |
| Constructing Renewable Fuel Facilities (Article 3B) | 20 | 177,629 | January 1, 2014 | § 105-129.16D | NC-478 |
| Small Business Employee Health Insurance (Article 3B) | 1,087 | 490,921 | January 1, 2010 | § 105-129.16E | NC-478 |
| Biodiesel Producers (Article 3B) | 5 | 30,532 | January 1, 2014 | § 105-129.16F | NC-478 |
| Work Opportunity (Article 3B) | 229 | 2,419,494 | January 1, 2014 | § 105-129.16G | NC-478 |
| Donating Funds for Purchases of Renewable Energy Property (Article 3B | 5 | 2,621 | None | § 105-129.16H | NC-478 |
| Facility for Manufacturing Renewable Energy Property (Article 3B) | 9 | 15,262 | January 1, 2014 | § 105-129.16I | NC-478 |
| Small Business Unemployment Insurance (Article 3B) | 28,744 | 8,882,777 | January 1, 2012 | § 105-129.16J | D-400TC or CD-425 |
| Investing in Major Recycling Facility (Article 3C) | 1 | 1,429,162 | None | § 105-129.27 | CD-425 |
| Historic Rehabilitation (Article 3D): | |||||
| Income-Producing Property | 207 | 6,902,940 | January 1, 2015 | § 105-129.35 | D-400TC or CD-425 |
| Non-Income-Producing Property | 554 | 5,159,626 | January 1, 2015 | § 105-129.36 | D-400TC or CD-425 |
| Low-Income Housing (Article 3E): | |||||
| Awarded a Federal Credit Allocation before Jan. 1, 2003 | 14 | 1,489,762 | January 1, 2015 | § 105-129.41 | NC-478; NC-478H |
| Awarded a Federal Credit Allocation on or after Jan. 1, 2003 | 41 | 50,926,142 | January 1, 2015 | § 105-129.42 | None/ Notification from NC Housing Finance Agency |
| N.C. Research and Development (Article 3F) | 602 | 35,768,842 | January 1, 2014 | § 105-129.55 | NC-478; NC-478I |
| Interactive Digital Media (Article 3F) | 24 | 2,562,130 | January 1, 2014 | § 105-129.56 | NC-478; NC-478I |
| Mill Rehabilitation (Article 3H): | |||||
| Income-Producing Property | 18 | 29,045,943 | January 1, 2015 | § 105-129.71 | D-400TC or CD-425 |
| Non-Income-Producing Property | 26 | 326,272 | January 1, 2015 | § 105-129.72 | D-400TC or CD-425 |
| Creating Jobs (Article 3J) | 242 | 5,417,293 | January 1, 2014 | § 105-129.87 | NC-478; NC-478J |
| Investing in Business Property (Article 3J) | 456 | 22,734,810 | January 1, 2014 | § 105-129.88 | NC-478; NC-478K |
| Investing in Real Property (Article 3J) | 8 | 309,055 | January 1, 2014 | § 105-129.89 | NC-478; NC-478L |
| Railroad Intermodal Facility (Article 3K) | 0 | 0 | January 1, 2038 | § 105-129.96 | NC-478 |
| NC State Ports Authority Charges | 35 | 793,547 | January 1, 2014 | § 105-130.41 & § 105-151.22 | NC-478 |
| Cigarette Exportation | 1 | 4,392,320 | January 1, 2018 | § 105-130.45 | NC-478 |
| Cigarette Exportation while Increasing Employment | 1 | 6,000,000 | January 1, 2018 | § 105-130.46 | NC-478 |
| Film Production | 30 | 69,281,988 | January 1, 2015 | § 105-130.47 & § 105-151.29 | NC-415 |
| Economic Incentive Refunds (Sales & Use Tax) (§ 105-164.14A.): | |||||
| Passenger Air Carrier | 1 | 13,378,549 | January 1, 2014 | § 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 | 4 | 150,329 | same as Article 3J | § 105-164.14A.(a)(3) | E-585S |
| Motorsports Team or Sanctioning Body | 9 | 146,977 | January 1, 2014 | § 105-164.14A.(a)(4) | E-588A |
| Professional Motorsports Team | 16 | 1,208,842 | January 1, 2014 | § 105-164.14A.(a)(5) | E-585S |
| Analytical Services Business | 3 | 176,072 | 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 |
| Certain Industrial Facilities Refunds (Sales & Use Tax) | 3 | 1,753,434 | January 1, 2014 | § 105-164.14B.(b) | E-585S |
| Sales & Use Refunds Supplement - Detail | 14 | 7,512,819 | |||
| Reports of Credits Generated | Number of Taxpayers | Credits Generated |
|---|---|---|
| Article 3A Credits Generated by Taxpayer | ||
| Creating Jobs | 0 | 0 |
| Creating Jobs in Development Zones | 0 | 0 |
| Machinery and Equipment | 2 | 1,325,027 |
| Research & Development | 2 | 161,877 |
| Other Article 3A Credits Generated by Taxpayer | 1 | 1,732,782 |
| Article 3J Credits Generated by Taxpayer | ||
| Creating Jobs | 157 | 53,257,595 |
| Investing in Business Property | 249 | 110,221,134 |
| Investing in Real Property | 2 | 5,874,057 |
NOTES
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 (6.9%).