§ 105-129.87. (See notes) Credit for creating jobs. - North Carolina Statutes

§ 105‑129.87.  (Seenotes) Credit for creating jobs.

(a)        Credit. – Ataxpayer that meets the eligibility requirements set out in G.S. 105‑129.83and satisfies the threshold requirement for new job creation in this Stateunder subsection (b) of this section during the taxable year is allowed acredit for creating jobs. The amount of the credit for each new job created isset out in the table below and is based on the development tier designation ofthe county in which the job is located. If the job is located in an urbanprogress zone or an agrarian growth zone, the amount of the credit is increasedby one thousand dollars ($1,000) per job. In addition, if a job located in anurban progress zone or an agrarian growth zone is filled by a resident of thatzone or by a long‑term unemployed worker, the amount of the credit isincreased by an additional two thousand dollars ($2,000) per job.

AreaDevelopment Tier                    Amountof Credit

TierOne                                             $12,500

TierTwo                                                 5,000

TierThree                                                  750

(b)        Threshold. – Theapplicable threshold is the appropriate amount set out in the following tablebased on the development tier designation of the county where the new jobs arecreated during the taxable year. If the taxpayer creates new jobs at more thanone eligible establishment in a county during the taxable year, the thresholdapplies to the aggregate number of new jobs created at all eligibleestablishments within the county during that year. If the taxpayer creates newjobs at eligible establishments in different counties during the taxable year,the threshold applies separately to the aggregate number of new jobs created ateligible establishments in each county. If the taxpayer creates new jobs in anurban progress zone or an agrarian growth zone, the applicable threshold is theone for a development tier one area. New jobs created in an urban progress zoneor an agrarian growth zone are not aggregated with jobs created at any othereligible establishments regardless of county.

Area Development Tier                               Threshold

Tier One                                                        5

Tier Two                                                      10

Tier Three                                                    15

(c)        Calculation. – Ajob is located in a county, an urban progress zone, or an agrarian growth zoneif more than fifty percent (50%) of the employee's duties are performed in thecounty or the zone. The number of new jobs a taxpayer creates during thetaxable year is determined by subtracting the average number of full‑timeemployees the taxpayer had in this State during the 12‑month periodpreceding the beginning of the taxable year from the average number of full‑timeemployees the taxpayer has in this State during the taxable year.

(d)        Installments. – Thecredit may not be taken in the taxable year in which the new jobs are created.Instead, the credit shall be taken in equal installments over the four yearsfollowing the taxable year in which the new jobs were created and isconditional upon the continued maintenance of those jobs by the taxpayer. If,in one of the four years in which the installment of a credit accrues, a job isno longer filled, the credit with respect to that job expires, and the taxpayermay not take any remaining installment of the credit with respect to that job.If, in one of the years in which the installment of a credit accrues, thenumber of the taxpayer's full‑time employees falls below the sum of theapplicable threshold and the number of full‑time employees the taxpayerhad in the year before the year in which the taxpayer qualified for the credit,the credits with respect to all of the new jobs expire, and the taxpayer maynot take any remaining installments of the credits. When a credit expires underthis subsection, the taxpayer may, however, take the portion of an installmentthat accrued in a previous year and was carried forward to the extent permittedunder G.S. 105‑129.84.

(e)        Transferred Jobs. –Jobs transferred from one area in the State to another area in the State arenot considered new jobs for purposes of this section. Jobs that were located inthis State and that are transferred to the taxpayer from a related member ofthe taxpayer are not considered new jobs for purposes of this section. If, inone of the four years in which the installment of a credit accrues, the jobwith respect to which the credit was claimed is moved to an area in a higher‑numbereddevelopment tier or out of an urban progress zone or an agrarian growth zone,the remaining installments of the credit are allowed only to the extent theywould have been allowed if the job was initially created in the area to whichit was moved. If, in one of the years in which the installment of a credit accrues,the job with respect to which the credit was claimed is moved to an area in alower‑numbered development tier or an urban progress zone or an agrariangrowth zone, the remaining installments of the credit shall be calculated as ifthe job had been created initially in the area to which it was moved.

(f)         Wage Standard. – Forthe purposes of this section, a taxpayer satisfies the wage standardrequirement of G.S. 105‑129.83 only if the taxpayer satisfies therequirement with respect to both the new jobs, considered collectively, forwhich a credit is claimed and all of the jobs at the establishment, consideredcollectively, with respect to which a credit is claimed.

(g)        No Double Credit. –A taxpayer may not claim a credit under this section with respect to jobs forwhich a taxpayer claims a credit under G.S. 105‑129.8. (2006‑252, s. 1.1; 2007‑527,s. 6.)