A BILL TO BE ENTITLED
AN ACT to Clarify the Small employer health insurance tax credit.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑129.16E(a) reads as rewritten:
"(a)	Credit. – A small business that provides health benefits for all of its eligible employees during the taxable year is allowed a credit to offset its costs in providing health benefits for its eligible employees. For the purposes of this subsection, a taxpayer provides health benefits if it pays at least fifty percent (50%) of the premiums for a health benefit plan sold by a small employer carrier under Part 5 of Article 50 of Chapter 58 of the General Statutes or if its employees have qualifying existing coverage.
The credit is equal to a dollar amount per eligible employee whose total wages or salary received from the business does not exceed forty thousand dollars ($40,000) on an annual basis. The dollar amount is two hundred fifty dollars ($250.00), not to exceed the taxpayer's costs of providing health benefits for the employee during the taxable year."
SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2007.