Bill Summaries: H1149 (2011-2012 Session)

Tracking:
  • Bill H 1149 (2011-2012)
    Summary date: Jun 6 2012 - View summary

    House committee substitute makes the following changes to 1st edition.
    Adds a definition for low income community and makes changes to the definitions for long-term debt security, qualified active low-income community business, and qualified low-income community investment. Allows a taxpayer to carry forward any tax credit that cannot be claimed in a tax year for the next five tax years (previously, no limit). Adds that tax credits may not be sold or transferred on the open market. Requires the Department of Commerce to begin accepting applications for qualified equity investments before January 31, 2013. Prohibits the Department from accepting applications on or after January 1, 2015. Makes other technical and clarifying changes.
    Business and Commerce, Community and Economic Development, Tax
  • Bill H 1149 (2011-2012)
    Summary date: May 24 2012 - View summary

    Adds new Article 3L, NC New Markets Job Growth Investment Initiative, to GS Chapter 105 to provide a tax credit of amounts ranging from 0 to 7% for qualified equity investments. Defines quality equity investment as an equity investment in, or long-term debt security issued by, a qualified community development entity that (1) is acquired after the act’s effective date at its original issuance for cash, (2) has at least 85% of its purchase price used to make qualified low-income community investments in qualified in state low-income community businesses, as specified, and (3) is designated as a qualified equity investment and certified by the Department of Commerce (Department). Defines qualified active low-income community business, qualified community development entity, and additional terms. Provides details on the tax credit, and directs the Department to limit qualified equity investments as necessary to cap the tax credits at $40 million a year. Sets out the procedure for a qualified community development entity to apply to the Department for an equity investment or long-term debt security to be designated as a qualified equity investment. Allows recapture of the credit under certain circumstances. Requires the Secretary of Commerce to issue binding letter rulings in response to applicants requesting an interpretation of the law to a specific set of facts. Applies to qualified equity investments made in tax years beginning on or after January 1, 2013.
    Business and Commerce, Community and Economic Development, Tax
    GS 105

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