§ 105-129.8. (See note for repeal) Credit for creating jobs. - North Carolina Statutes

§ 105‑129.8.  (See notefor repeal) Credit for creating jobs.

(a)        Credit. – Ataxpayer that meets the eligibility requirements set out in G.S. 105‑129.4,has five or more full‑time employees, and hires an additional full‑timeemployee during the taxable year to fill a new position located in this Stateis allowed a credit for creating a new full‑time job. The amount of thecredit for each new full‑time job created is set out in the table belowand is based on the enterprise tier of the area in which the position islocated. In addition, if the position is located in a development zone oragrarian growth zone, the amount of the credit is increased by four thousanddollars ($4,000) per job.

AreaEnterprise Tier                        Amount of Credit

TierOne                                        $12,500

TierTwo                                            4,000

TierThree                                          3,000

TierFour                                            1,000

TierFive                                               500

(a1)      Positions. – Aposition is located in an area if more than fifty percent (50%) of theemployee's duties are performed in the area. The number of new positions ataxpayer fills during the taxable year is determined by subtracting the highestnumber of full‑time employees the taxpayer had in this State at any timeduring the 12‑month period preceding the beginning of the taxable yearfrom the number of full‑time employees the taxpayer has in this State atthe end of the taxable year.

(a2)      Installments. – Thecredit may not be taken in the taxable year in which the additional employee ishired. Instead, the credit must be taken in equal installments over the fouryears following the taxable year in which the additional employee was hired andis conditioned on the taxpayer's continued employment in this State of thenumber of full‑time employees the taxpayer had upon hiring the employeethat caused the taxpayer to qualify for the credit.

If, in one of the four yearsin which the installment of a credit accrues, the number of the taxpayer's full‑timeemployees in this State falls below the number of full‑time employees thetaxpayer had in this State in the year in which the taxpayer qualified for thecredit, the credit expires and the taxpayer may not take any remaininginstallment of the credit. The taxpayer may, however, take the portion of aninstallment that accrued in a previous year and was carried forward to theextent permitted under G.S. 105‑129.5.

(a3)      Transferred Jobs. – Jobstransferred from one area in the State to another area in the State are notconsidered new jobs for purposes of this section. If, in one of the four yearsin which the installment of a credit accrues, the position filled by the employeeis moved to an area in a higher‑ or lower‑numbered enterprise tier,or is moved from a development zone or agrarian growth zone to an area that isnot a development zone or agrarian growth zone, the remaining installments ofthe credit must be calculated as if the position had been created initially inthe area to which it was moved.

(b)        Repealed by SessionLaws 1989, c. 111, s. 1.

(b1),     (c)  Repealed bySession Laws 1996, Second Extra Session, c. 13, s. 3.3.

(d)        Planned Expansion.– A taxpayer that signs a letter of commitment with the Department of Commerceto create at least twenty new full‑time jobs in a specific area withintwo years of the date the letter is signed qualifies for the credit in theamount allowed by this section based on the area's enterprise tier anddevelopment zone or agrarian growth zone designation for that year even thoughthe employees are not hired that year. In the case of an interstate air courierthat has or is constructing a hub in this State and in the case of an eligiblemajor industry, the applicable time period is seven years. The credit shall beavailable in the taxable year after at least twenty employees have been hiredif the hirings are within the applicable commitment period. The conditionsoutlined in subsection (a) apply to a credit taken under this subsection exceptthat if the area is redesignated to a higher‑numbered enterprise tier orloses its development zone or agrarian growth zone designation after the yearthe letter of commitment was signed, the credit is allowed based on the area'senterprise tier and development zone or agrarian growth zone designation forthe year the letter was signed. If the taxpayer does not hire the employeeswithin the applicable period, the taxpayer does not qualify for the credit.However, if the taxpayer qualifies for a credit under subsection (a) in theyear any new employees are hired, the taxpayer may take the credit under thatsubsection.

(e),       (f)  Repealed bySession Laws 1996, Second Extra Session, c. 13, s. 3.3. (1987, c. 568, ss. 1, 2;1989, c. 111, ss. 1, 2; c. 751, ss. 7(6), 7(7), 8(10), 8(11); c. 753, s. 4.1(a)‑(d);1989 (Reg. Sess., 1990), c. 814, s. 14; 1991, c. 517, ss. 1‑3; 1991 (Reg.Sess., 1992), c. 959, ss. 20, 21; 1993, c. 45, ss. 1, 2; c. 485, ss. 7, 11;1995, c. 370, ss. 5, 6; 1996, 2nd Ex. Sess., c. 13, ss. 3.2‑3.4; 1997‑277,s. 1; 1998‑55, s. 1; 1999‑360, s. 1; 2000‑56, s. 8(a); 2000‑140,s. 92.A(b); 2001‑414, s. 8; 2002‑146, s. 6; 2003‑435, 2nd Ex.Sess., s. 3.6; 2004‑170, s. 43(a); 2005‑435, s. 28; 2006‑66,s. 24.16(e).)