§ 105-129.16E. (Effective for taxable years beginning on or after January 1, 2007, and expires for taxable years beginning on or after January 1, 2010) Credit for small business employee health benefi - North Carolina Statutes

§ 105‑129.16E. (Effective for taxable years beginning on or after January 1, 2007, and expiresfor taxable years beginning on or after January 1, 2010) Credit for smallbusiness employee health benefits.

(a)        Credit. – A smallbusiness that provides health benefits for all of its eligible employees duringthe taxable year is allowed a credit to offset its costs in providing healthbenefits for its eligible employees. For the purposes of this subsection, ataxpayer provides health benefits if it pays at least fifty percent (50%) ofthe premiums for health care coverage that equals or exceeds the minimumprovisions of the basic health care plan of coverage recommended by the SmallEmployer Carrier Committee pursuant to G.S. 58‑50‑125 or if itsemployees have qualifying existing coverage.

The credit is equal to adollar amount per eligible employee whose total wages or salary received fromthe business does not exceed forty thousand dollars ($40,000) on an annualbasis. The dollar amount is two hundred fifty dollars ($250.00), not to exceedthe taxpayer's costs of providing health benefits for the employee during thetaxable year.

(b)        Allocation. – Ifthe taxpayer is an individual who is a nonresident or a part‑yearresident, the taxpayer must reduce the amount of the credit by multiplying itby the fraction calculated under G.S. 105‑134.5(b) or (c), asappropriate. If the taxpayer is not an individual and is required to apportionits multistate business income to this State, the taxpayer must reduce theamount of the credit by multiplying it by the apportionment fraction used toapportion its apportionable income to this State.

(c)        Definitions. – Thefollowing definitions apply in this section:

(1)        Eligible employee. –Defined in G.S. 58‑50‑110.

(2)        Qualifying existingcoverage. – Defined in G.S. 58‑50‑130(a)(4a).

(3)        Small business. – Ataxpayer that employs no more than 25 eligible employees throughout the taxableyear.

(d)        Sunset. – Thissection expires for taxable years beginning on or after January 1, 2010.  (2006‑66, s. 24.4(a);2007‑527, s. 5; 2008‑107, s. 28.9A(a).)