§ 105-129.62. (For delayed repeal, see note) Eligibility. - North Carolina Statutes

§ 105‑129.62.  (Fordelayed repeal, see note) Eligibility.

(a)        Determination bySecretary of Commerce. – A taxpayer is eligible for the credit allowed underthis Article with respect to a facility in this State only if the Secretary ofCommerce makes a written determination that the taxpayer has or is expected tohave an increased employment level at the facility of at least 1,200 withinfive years after the time that the facility is first used as a computermanufacturing and distribution facility and that the taxpayer, either directlyor indirectly through a related entity or strategic partner, has invested or isexpected to invest at least one hundred million dollars ($100,000,000) inprivate funds to construct a computer manufacturing and distribution facilityover a five‑year period. For the purposes of this Article, costs ofconstruction may include costs of acquiring and improving land for thefacility, costs for renovations or repairs to existing buildings, and costs ofequipping or reequipping the facility.

(b)        Health Insurance. –A taxpayer is eligible for the credit allowed under this Article with respectto a facility in this State only if the taxpayer and the taxpayer's relatedentities and strategic partners whose employees are included in the taxpayer'sincreased employment level provide health insurance for all of the full‑timejobs at the facility with respect to which the credit is claimed each year itclaims a credit or carryforward of a credit. For the purposes of thissubsection, an entity provides health insurance if it pays at least fiftypercent (50%) of the premiums for health care coverage that equals or exceedsthe minimum provisions of the basic health care plan of coverage recommended bythe Small Employer Carrier Committee pursuant to G.S. 58‑50‑125.

Each year that a taxpayerclaims a credit or carryforward of a credit allowed under this Article, thetaxpayer must provide with the tax return the taxpayer's certification that thetaxpayer and the taxpayer's related entities and strategic partners whoseemployees are included in the taxpayer's increased employment level continue toprovide health insurance for all the full‑time jobs at the facility withrespect to which the credit is claimed. If the taxpayer, or a related entity orstrategic partner of the taxpayer whose employees are included in the increasedemployment level of the taxpayer, ceases to provide health insurance for thejobs during a taxable year, the credit expires and the taxpayer may not takeany remaining carryforward of the credit.

(c)        EnvironmentalImpact. – A taxpayer is eligible for the credit allowed under this Article withrespect to a facility in this State only if as of the last day of the taxableyear for which a credit or carryforward is claimed the taxpayer and thetaxpayer's related entities and strategic partners whose employees are includedin the taxpayer's increased employment level have no pending administrative,civil, or criminal enforcement actions based on alleged significant violationsof any program implemented by an agency of the Department of Environment andNatural Resources, and have had no final determination of responsibility forany significant administrative, civil, or criminal violation of any programimplemented by an agency of the Department of Environment and Natural Resourceswithin the last five years. For the taxpayer's related entities and strategicpartners, this subsection applies only to the activities of the related entityor strategic partner at the facility with respect to which a credit is claimed.A significant violation is a violation or alleged violation that does notsatisfy any of the conditions of G.S. 143‑215.6B(d). Upon request, theSecretary of Environment and Natural Resources must notify the Department ofRevenue of whether a person currently has any of these pending actions or hashad any of these final determinations within the last five years.

(d)        Safety and HealthPrograms. – A taxpayer is eligible for the credit allowed under this Articlewith respect to a facility in this State only if as of the last day of thetaxable year for which a credit or carryforward is claimed the taxpayer and thetaxpayer's related entities and strategic partners whose employees are includedin the taxpayer's increased employment level have no citations under theOccupational Safety and Health Act at the facility with respect to which thecredit is claimed that have become a final order within the past three yearsfor willful serious violations or for failing to abate serious violations. Forthe purposes of this subsection, "serious violation" has the samemeaning as in G.S. 95‑127. Upon request, the Secretary of Labor mustnotify the Department of Revenue of whether a person has had these citationsbecome final orders within the past three years.

(e)        Overdue Tax Debts.– A taxpayer is eligible for the credit allowed under this Article with respectto a facility only if as of the last day of the taxable year for which a creditor carryforward is claimed the taxpayer and the taxpayer's related entities andstrategic partners whose employees are included in the taxpayer's increasedemployment level have no overdue tax debts that have not been satisfied orotherwise resolved.

(f)         Relationship WithRelated Entities and Strategic Partners. – A taxpayer must obtain the writtenconsent of related entities and strategic partners to include jobs created bythose entities in the taxpayer's increased employment level. If a taxpayerfails to obtain this written consent, the taxpayer may not include jobs createdby the applicable business in its increased employment level. This consent,once granted, is irrevocable. A job may not be included in the increasedemployment level of more than one entity. The taxpayer is responsible forproviding all information needed to verify eligibility for the credit,including information relating to the related entities or strategic partners ofthe taxpayer. (2004‑204,1st Ex. Sess., s. 1; 2005‑435, s. 29(a), (b), (c).)