§ 105-129.26. Qualification; forfeiture. - North Carolina Statutes

§ 105‑129.26. Qualification; forfeiture.

(a)        Major RecyclingFacility. – A recycling facility qualifies for the tax benefits provided inthis Article and in Article 5 of this Chapter for major recycling facilities ifit meets all of the following conditions:

(1)        The facility islocated in an area that, at the time the owner began construction of thefacility, was an enterprise tier one area pursuant to G.S. 105‑129.3.

(2)        The Secretary ofCommerce has certified that the owner will, by the end of the fourth year afterthe year the owner begins construction of the recycling facility, invest atleast three hundred million dollars ($300,000,000) in the facility and createat least 250 new, full‑time jobs at the facility.

(3)        The jobs at therecycling facility meet the wage standard in effect pursuant to G.S. 105‑129.4(b)as of the date the owner begins construction of the facility.

(b)        Large RecyclingFacility. – A recycling facility qualifies for the tax credit provided in G.S.105‑129.27 for large recycling facilities if it meets all of thefollowing conditions:

(1)        The facility islocated in an area that, at the time the owner began construction of thefacility, was an enterprise tier one area pursuant to G.S. 105‑129.3.

(2)        The Secretary ofCommerce has certified that the owner will, by the end of the second year afterthe year the owner begins construction of the recycling facility, invest atleast one hundred fifty million dollars ($150,000,000) in the facility andcreate at least 155 new, full‑time jobs at the facility.

(3)        The jobs at therecycling facility meet the wage standard in effect pursuant to G.S. 105‑129.4(b)as of the date the owner begins construction of the facility.

(c)        Forfeiture. – Ifthe owner of a large or major recycling facility fails to make the requiredminimum investment or create the required number of new jobs within the periodcertified by the Secretary of Commerce under this section, the recyclingfacility no longer qualifies for the applicable recycling facility tax benefitsprovided in this Article and in Article 5 of this Chapter and forfeits all taxbenefits previously received under those Articles. Forfeiture does not occur,however, if the failure was due to events beyond the owner's control. Uponforfeiture of tax benefits previously received, the owner is liable under Part1 of Article 4 of this Chapter for a tax equal to the amount of all past taxesunder Articles 3, 4, and 5 previously avoided as a result of the tax benefitsreceived plus interest at the rate established in G.S. 105‑241.21,computed from the date the taxes would have been due if the tax benefits hadnot been received. The tax and interest are due 30 days after the date of theforfeiture. An owner that fails to pay the tax and interest is subject to thepenalties provided in G.S. 105‑236.

(d)        Substantiation. – Toclaim a credit allowed by this Article, the owner must provide any informationrequired by the Secretary of Revenue. Every owner claiming a credit under thisArticle shall maintain and make available for inspection by the Secretary ofRevenue any records the Secretary considers necessary to determine and verifythe amount of the credit to which the owner is entitled. The burden of provingeligibility for the credit and the amount of the credit shall rest upon theowner, and no credit shall be allowed to an owner that fails to maintainadequate records or to make them available for inspection.

(e)        Reports. – TheDepartment of Commerce and the Department of Revenue shall jointly publish byMay 1 of each year the following information itemized by taxpayer for the 12‑monthperiod ending the preceding December 31:

(1)        The number andlocation of large and major recycling facilities qualified under this Article.

(2)        The number of newjobs created by each recycling facility.

(3)        The amount ofinvestment in each recycling facility.

(4)        The amount ofcredits taken under this Article. (1998‑55, s. 12; 2005‑429, s. 2.4; 2007‑491,s. 44(1)a.)