§ 105-129.64. (For delayed repeal, see note) Credit for major computer manufacturing facilities. - North Carolina Statutes

§ 105‑129.64.  (Fordelayed repeal, see note) Credit for major computer manufacturing facilities.

(a)        General Credit. – Ataxpayer that meets the eligibility requirements of G.S. 105‑129.62 iseligible for a credit against the taxes imposed by Articles 3 and 4 of thisChapter. For taxable years beginning with the 2006 taxable year, the amount ofthe credit allowable in a year is determined based on the taxable year, theunit output of the facility, the production factor, and the increasedemployment level at the facility in the current taxable year and previoustaxable years.

(b)        2005 Taxable Year.– For taxable years beginning on or after January 1, 2005, but before January1, 2006, the amount of the credit is equal to ten million dollars ($10,000,000)if the taxpayer, either directly or through a related entity, has invested atleast twenty‑five million dollars ($25,000,000) in private funds by theend of the taxable year to construct a computer manufacturing and distributionfacility in this State.

(c)        2006‑2009Taxable Years. – For taxable years beginning on or after January 1, 2006, butbefore January 1, 2010, the maximum amount of the credit is ten million dollars($10,000,000). The amount of the credit that may be claimed is determined bymultiplying the employment level adjustment factor by the lesser of ten milliondollars ($10,000,000) and the product of the unit output of the facility andthe applicable production factor listed in subsection (f) of this section. Forthe purposes of this subsection, the employment level adjustment factor is thelesser of one and the number derived by dividing the taxpayer's increasedemployment level for the year by the applicable target increased employmentlevel provided in the table below:

Year                                        TargetIncreased Employment Level

2006                                                                       600

2007                                                                    1,000

2008                                                                    1,100

2009                                                                    1,500

(d)        2010‑2014Taxable Years. – For taxable years beginning on or after January 1, 2010, butbefore January 1, 2015, the maximum amount of the credit is fifteen milliondollars ($15,000,000) if the taxpayer has in any year attained an increasedemployment level of 1,500. Otherwise the maximum amount of the credit is tenmillion dollars ($10,000,000). The amount of the credit is determined asfollows:

(1)        If the taxpayer hasever attained an increased employment level of at least 1,500, the amount ofthe credit that may be claimed is the lesser of fifteen million dollars($15,000,000) and the amount determined by multiplying the unit output of thefacility by the applicable production factor listed in subsection (f) of thissection. If the taxpayer's increased employment level has decreased by morethan forty percent (40%) from that of the previous taxable year, the amount ofthe credit that may be claimed must be reduced by multiplying the amountdetermined under this subdivision by a fraction, the numerator of which is thetaxpayer's increased employment level for the taxable year and the denominatorof which is 1,500.

(2)        If the taxpayer hasnever attained an increased employment level of at least 1,500, the amount ofthe credit that may be claimed is equal to the employment level adjustmentfactor multiplied by the lesser of ten million dollars ($10,000,000) and theproduct of the unit output of the facility and the applicable production factorlisted in subsection (f) of this section. For the purposes of this subdivision,the employment level adjustment factor is the lesser of one and the numberderived by dividing the taxpayer's increased employment level for the year by1,500.

(e)        2015‑2019Taxable Years. – For taxable years beginning on or after January 1, 2015, butbefore January 1, 2020, the maximum amount of the credit is twenty milliondollars ($20,000,000) if the taxpayer has in any year attained an increasedemployment level of 2,500. If the taxpayer has in any year attained anincreased employment level of at least 1,500, but in no year has attained anincreased employment level of at least 2,500, the maximum amount of the creditis fifteen million dollars ($15,000,000). Otherwise the maximum amount of thecredit is ten million dollars ($10,000,000). The amount of the credit isdetermined as follows:

(1)        If the taxpayer hasever attained an increased employment level of at least 2,500 and thetaxpayer's increased employment level for the current year is at least 1,500,the amount of the credit is the lesser of twenty million dollars ($20,000,000)and the amount determined by multiplying the unit output of the facility by theapplicable production factor listed in subsection (f) of this section.

(2)        If the taxpayer hasever attained an increased employment level of at least 1,500 but has neverattained an increased employment level of at least 2,500, or if the taxpayerhas ever attained an increased employment level of at least 2,500 and thetaxpayer's current increased employment level is less than 1,500, the amount ofthe credit that may be claimed is the lesser of fifteen million dollars($15,000,000) and the amount determined by multiplying the unit output of thefacility by the applicable production factor listed in subsection (f) of thissection. If the taxpayer's increased employment level has decreased by morethan forty percent (40%) from that of the previous taxable year and (i) theincreased employment level of the previous year was 1,500 or less or (ii) theincreased employment level of the current year is 900 or less, the amount ofthe credit that may be claimed must be reduced by multiplying the amountdetermined under this subdivision by a fraction, the numerator of which is thetaxpayer's increased employment level for the taxable year and the denominatorof which is 1,500.

(3)        If the taxpayer hasnever attained an increased employment level of at least 1,500, the amount ofthe credit that may be claimed is equal to the employment level adjustmentfactor multiplied by the lesser of ten million dollars ($10,000,000) and theproduct of the unit output of the facility and the applicable production factorlisted in subsection (f) of this section. For the purposes of this subdivision,the employment level adjustment factor is the lesser of one and the numberderived by dividing the taxpayer's employment level for the year by 1,500.

(f)         Production Factor.– For taxable years beginning on or after January 1, 2006, but before January1, 2007, the production factor is fifteen dollars ($15.00). For all othertaxable years, the production factor is six dollars and twenty‑five cents($6.25).

(g)        Expiration. – Ifthe taxpayer fails to attain an increased employment level of at least 1,200,either directly or in conjunction with its strategic partners and relatedentities, within five years after beginning construction of the facility withrespect to which a credit is claimed or the taxpayer fails to invest at leastone hundred million dollars ($100,000,000) in private funds to construct acomputer manufacturing and distribution facility over a five‑year period,the taxpayer may not take any further credits under this Article with respectto that facility. Failure to attain an increased employment level of 1,200within the five years or to invest at least one hundred million dollars($100,000,000) in private funds to construct the facility does not result inforfeiture of credits previously taken under this section unless the provisionsof G.S. 105‑129.63 apply. (2004‑204, 1st Ex. Sess., s. 1.)