A BILL TO BE ENTITLED
AN ACT to exempt from corporate income tax the first eighty‑five thousand dollars of State taxable income as an economic enhancement to create jobs.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑130.3 reads as rewritten:
"§ 105‑130.3.  Corporations.
(a)	Tax. – A tax is imposed on the State net income of every C Corporation doing business in this State. An S Corporation is not subject to the tax levied in this section. The tax is six and nine‑tenths percent (6.9%) of the taxpayer's State net 																											income
(b)	Exemption. – Before computing the tax in subsection (a) of this section, a C Corporation that is not required to apportion income to this State may subtract from State net income eighty‑five thousand dollars ($85,000). If a C Corporation is required to apportion income to this State, the applicable exemption amount is the product of the corporation's apportionment fraction determined under G.S. 105‑130.4(i) multiplied by eighty‑five thousand dollars ($85,000)."
SECTION 2.  G.S. 115C‑546.1(b) reads as rewritten:
"(b)	Each calendar quarter, the Secretary of Revenue shall remit to the State Treasurer for credit to the Public School Building Capital Fund an amount equal to eighteen twenty‑thirds (18/23) of the net collections received during the previous quarter by the Department of Revenue under G.S. 105‑130.3. All funds deposited in the Public School Building Capital Fund shall be invested as provided in G.S. 147‑69.2 and G.S. 147‑69.3.
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SECTION 3.  Section 1 of this act is effective for taxable years beginning on or after January 1, 2008. Section 2 of this act is effective July 1, 2008, and applies to the calendar quarter that ends September 30, 2008. The remainder of this act is effective when it becomes law.