GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1999

SESSION LAW 2000-160
HOUSE BILL 1583

AN ACT TO PROVIDE AN INCENTIVE FOR INVESTING IN DRY-CLEANING EQUIPMENT THAT DOES NOT USE HAZARDOUS SUBSTANCES AND TO MODIFY THE AUTHORIZATION FOR INVESTING STATE FUNDS IN RURAL NORTH CAROLINA.

The General Assembly of North Carolina enacts:

Section 1.  Article 3B of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105-129.16C. Credit for investing in dry-cleaning equipment that does not use a hazardous substance.
(a)	Credit. – If a taxpayer that has purchased or leased qualified dry-cleaning equipment, places it in service in this State for commercial purposes during the taxable year, the taxpayer is allowed a credit equal to twenty percent (20%) of the cost of the equipment.  To support the credit allowed by this section, the taxpayer must file with the tax return for the taxable year in which the credit is claimed a certification by the Department of Environment and Natural Resources that the equipment purchased or leased by the taxpayer is qualified dry-cleaning equipment.
(b)	Restrictions. – No credit is allowed under this section to the extent the cost of the equipment was paid with public funds.  A taxpayer that claims any other credit allowed under this Chapter with respect to qualified dry-cleaning equipment may not take the credit allowed in this section with respect to the same equipment.
(c)	Definitions. – The following definitions apply only in this section:
(1)	Hazardous solvent. – A solvent, any portion of which consists of a chlorine-based solvent, a hydrocarbon-based solvent, a hazardous substance as defined in G.S. 130A-310(2), or any substance determined by the Administrator of the Environmental Protection Agency or the Director of the National Institute of Occupational Safety and Health to possess carcinogenic potential to humans.
(2)	Qualified dry-cleaning equipment. – Equipment that is designed and used primarily to dry-clean clothing and other fabric and does not use any hazardous solvent or any other substance that the Department of Environment and Natural Resources determines to pose a threat to human health or the environment."
Section 2. G.S. 147-69.2(b)(9) and (10) read as rewritten:
"(b)	It shall be the duty of the State Treasurer to invest the cash of the funds enumerated in subsection (a) of this section in excess of the amount required to meet the current needs and demands on such funds, selecting from among the following:
…
(9)	Obligations and securities of The North Carolina Enterprise Corporation, of the North Carolina Economic Opportunities Fund, or of a limited partnership in which The North Carolina Enterprise Corporation or the North Carolina Economic Opportunities Fund is the only general partner, not to exceed twenty million dollars ($20,000,000) from all 
	funds; and a limited partnership interest in a partnership whose primary purpose is to invest in venture capital or corporate buyout transactions, not to exceed thirty million dollars ($30,000,000) from all funds. These maximum dollar amounts do not apply to or restrict the reinvestment in accordance with this subdivision of any income from these investments."
Section 3.  Section 1 of this act is effective for taxable years beginning on or after July 1, 2001.  The remainder of this act is effective when it becomes law.
In the General Assembly read three times and ratified this the 12th day of July, 2000.

s/	Marc Basnight
President Pro Tempore of the Senate

s/	James B. Black
Speaker of the House of Representatives

s/	James B. Hunt, Jr.
Governor

Approved 9:46 a.m. this 2nd day of August, 2000