GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

S	1 

SENATE BILL 1368

Short Title:  Delay Sunset on Tax Credits.	(Public)

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Sponsors: Senator Ballantine.

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Referred to:  Finance.

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May 27, 1998

A BILL TO BE ENTITLED
AN ACT TO DELAY THE SUNSET ON THE QUALIFIED BUSINESS INVESTMENT TAX CREDITS.
The General Assembly of North Carolina enacts:
Section 1.  Section 7 of Chapter 443 of the 1993 Session Laws reads as rewritten:
"Sec. 7.  Division V of Article 4 of Chapter 105 of the General Statutes is repealed effective for investments made on or after January 1, 2001.  Division V of Article 4 of Chapter 105 of the General Statutes will remain in effect for investments made before January 1, 2001."
Section 2.  Section 10 of Chapter 443 of the 1993 Session Laws reads as rewritten:
"Sec. 10.  Section 6 of this act is effective upon ratification.  Section 7 of this act becomes effective for investments made on or after January 1, 2001.  The remainder of this act becomes effective for taxable years beginning on or after January 1, 1994.
A business registered as a qualified business venture or a qualified grantee business before January 1, 1994, retains its registration until the renewal date for the registration of that business under Division V of Article 4 of Chapter 105 of the General Statutes as in effect before January 1, 1994.  The Secretary of State shall not grant renewal of a registration as a qualified business venture or a qualified grantee business unless at the time of filing the renewal application, the business meets the requirements then in effect for a new registration.
Notwithstanding the provisions of G.S. 105-163.014(a), as amended by this act, a credit under Division V of Article 4 of Chapter 105 of the General Statutes for an investment made before January 1, 1994, is not forfeited solely on the grounds that a sibling of the taxpayer provides services for compensation to the business in which the taxpayer invested.
Notwithstanding the provisions of G.S. 105-163.014(d), as amended by this act, a credit under Division V of Article 4 of Chapter 105 of the General Statutes for an investment made before January 1, 1994, is not forfeited solely on the grounds that a redemption of the securities received in the investment is made within five years after the investment was made.
The Secretary of State may require a qualified business venture or a qualified grantee business that is unable to renew its registration after January 1, 1994, to file reports the Secretary of State considers appropriate to determine the location of the headquarters and principal business operations of the business until three years after the date of the last investment in the business that qualified for the tax credit allowed under Division V of Article 4 of Chapter 105 of the General Statutes."
Section 3.  This act is effective when it becomes law.