A BILL TO BE ENTITLED
AN ACT to allow for a sales and use tax refund for supplies used in research, development, and analytical services.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑164.3 is amended by adding a new subdivision to read:
"§ 105‑164.3.  Definitions.
The following definitions apply in this Article:
…
(33a)	Research, development, or analytical services. – One of the following:
a.	Research or development in the physical, engineering, or life sciences that is included in national industry 541710 of NAICS.
b.	Testing laboratories that are included in national industry 541380 of NAICS or medical laboratories included in national industry 621511 of NAICS."
SECTION 2.  G.S. 105‑164.14 is amended by adding a new subsection to read:
"(n)	Research and Development and Analytical Services Supplies. – A taxpayer engaged in research, development, or analytical services is allowed a refund of the sales and use tax paid by it in this State on tangible personal property that is consumed or transformed in research, development, or analytical service activities. A request for a refund must be in writing and must include any information and documentation that the Secretary requires. A request for a refund is due within six months after the end of the State's fiscal year. Refunds applied for after the due date are barred."
SECTION 3.  Article 5 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑164.44J.  Transfer to the One North Carolina Small Business Account.
At the end of each fiscal quarter, the Secretary shall transfer to the One North Carolina Small Business Account within the One North Carolina Fund, established under G.S. 143B‑437.71, an amount equal to twelve and one‑half percent (12.5%) of the amount of sales and use taxes refunded pursuant G.S. 105‑164.14(n) during the previous fiscal year, as determined by the Secretary based on available data."
SECTION 4.  Section 3 of this act becomes effective July 1, 2008. The remainder of this act becomes effective July 1, 2007, and applies to purchases made on or after that date.