A BILL TO BE ENTITLED
AN ACT to create a tax credit for new jobs created by small businesses.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑129.81 is amended by adding a new subdivision to read:
"§ 105‑129.81.  Definitions.
The following definitions apply in this Article:
…
(19)	New job. – A full‑time job that represents a net increase in the number of the taxpayer's employees statewide. A new employee is an employee who holds a new job. The term does not include a job currently located in this State that is transferred to the business from a related member of the business.
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(23a)	Small business. – A taxpayer that employs no more than 50 eligible employees throughout the taxable year.
…."
SECTION 2.  G.S. 105‑129.87(a) reads as rewritten:
"§ 105‑129.87.  Credit for creating jobs.
(a)	Credit. – A taxpayer other than a small business that meets the eligibility requirements set out in G.S. 105‑129.83 and satisfies the threshold requirement for new job creation in this State under subsection (b) of this section during the taxable year is allowed a credit for creating jobs. A taxpayer that is a small business, that meets the eligibility requirements set out in G.S. 105‑129.83, other than the eligible business requirement of G.S. 105‑129.83(a), and that satisfies the threshold requirement for new job creation in this State under subsection (b) of this section during the taxable year is allowed a credit for creating jobs. The amount of the credit for each new job created is set out in the table below and is based on the development tier designation of the county in which the job is located. If the job is located in an urban progress zone or an agrarian growth zone and is created by a taxpayer other than a small business, the amount of the credit is increased by an additional one thousand dollars ($1,000) per job. In addition, if the job is located in an urban progress zone or an agrarian growth zone and filled by a resident of that zone or by a long‑term unemployed worker or is created by a small business, the amount of the credit is increased by an additional two thousand dollars ($2,000) per job.
Area Development Tier	Amount of Credit
Tier One	$12,500
Tier Two	5,000
Tier Three	750".
SECTION 3.  This act is effective for taxable years beginning on or after January 1, 2011.