§ 105-130.45. (Effective for cigarettes exported before January 1, 2005 and repealed effective January 1, 2018) Credit for manufacturing cigarettes for exportation. - North Carolina Statutes

§ 105‑130.45. (Effective for cigarettes exported before January 1, 2005 and repealedeffective January 1, 2018) Credit for manufacturing cigarettes for exportation.

(a)        Definitions. – Thefollowing definitions apply in this section:

(1)        Base year exportationvolume. – The number of cigarettes manufactured and exported by a corporationduring the calendar year 1998.

(2)        Exportation. – Theshipment of cigarettes manufactured in the United States to any of thefollowing sufficient to relieve the cigarettes in the shipment of the federalexcise tax on cigarettes:

a.         A foreign country.

b.         A possession of theUnited States.

c.         A commonwealth ofthe United States that is not a state.

(b)        Credit. – Acorporation engaged in the business of manufacturing cigarettes for exportationto a foreign country is allowed a credit against the taxes levied by this Part.The amount of credit allowed under this section is determined by comparing theexportation volume of the corporation in the year for which the credit isclaimed with the corporation's base year exportation volume, rounded to thenearest whole percentage. The amount of credit allowed is as follows:

                Current Year'sExportation                                                   Amount of Credit

                  VolumeCompared to its                                                        perThousand

           Base Year'sExportation Volume                                            CigarettesExported

                        120% ormore                                                                           40¢

                        119% – 100%                                                                           35¢

                          99% – 80%                                                                             30¢

                          79% – 60%                                                                             25¢

                          59% – 50%                                                                             20¢

                        Less than50%                                                                         None

(c)        Cap. – The creditallowed under this section may not exceed the lesser of six million dollars($6,000,000) or fifty percent (50%) of the amount of tax imposed by this Partfor the taxable year reduced by the sum of all other credits allowable, excepttax payments made by or on behalf of the taxpayer. This limitation applies tothe cumulative amount of the credit allowed in any tax year, includingcarryforwards claimed by the taxpayer under this section for previous taxyears. Any unused portion of a credit allowed in this section may be carriedforward for the next succeeding five years.

(d)        Documentation ofCredit. – A corporation that claims the credit under this section must includethe following with its tax return:

(1)        A statement of thebase year exportation volume.

(2)        A statement of theexportation volume on which the credit is based.

(3)        A list of thecorporation's export volumes shown on its monthly reports to the Bureau ofAlcohol, Tobacco, and Firearms of the United States Treasury for the months inthe tax year for which the credit is claimed.  (1999‑333, s. 4; 2003‑435, 2nd Ex. Sess.,ss. 5.1, 5.3.)

§ 105‑130.45. (Effective for cigarettes exported on or after January 1, 2005 and repealedeffective January 1, 2018) Credit for manufacturing cigarettes for exportation.

(a)        Definitions. – Thefollowing definitions apply in this section:

(1)        Base yearexportation volume. – The number of cigarettes manufactured and exported by acorporation during the calendar year 2003.

(2)        Exportation. – Theshipment of cigarettes manufactured in the United States to any of thefollowing sufficient to relieve the cigarettes in the shipment of the federalexcise tax on cigarettes:

a.         A foreign country.

b.         A possession of theUnited States.

c.         A commonwealth ofthe United States that is not a state.

(3)        Successor inbusiness. – A corporation that through amalgamation, merger, acquisition,consolidation, or other legal succession becomes invested with the rights andassumes the burdens of the predecessor corporation and  continues the cigaretteexportation business.

(b)        Credit. – Acorporation engaged in the business of manufacturing cigarettes for exportationto a foreign country and that waterborne exports cigarettes and other tobaccoproducts through the North Carolina State Ports during the taxable year isallowed a credit against the taxes levied by this Part. The amount of creditallowed under this section is determined by comparing the exportation volume ofthe  corporation in the year for which the credit is claimed with thecorporation's base  year exportation volume, rounded to the nearest wholepercentage. In the case of a successor in business, the amount of creditallowed under this section is determined by comparing the exportation volume ofthe corporation in the year for which the credit is claimed with all of thecorporation's predecessor corporations' combined base year exportation volume,rounded to the nearest whole percentage. The amount of credit allowed may notexceed six million dollars ($6,000,000) and is computed as follows:

                Current Year'sExportation                                                   Amount of Credit

                  VolumeCompared to its                                                        perThousand

           Base Year's ExportationVolume                                            Cigarettes Exported

                        120% ormore                                                                           40¢

                        119% – 100%                                                                           35¢

                          99% – 80%                                                                             30¢

                          79% – 60%                                                                             25¢

                          59% – 50%                                                                             20¢

                        Less than50%                                                                         None

(c)        Cap. – The creditallowed under this section may not exceed the lesser of six million dollars($6,000,000) or fifty percent (50%) of the amount of tax imposed by this Partfor the taxable year reduced by the sum of all other credits allowable, excepttax payments made by or on behalf of the taxpayer. This limitation applies tothe cumulative amount of the credit allowed in any tax year, includingcarryforwards claimed by the taxpayer under this section for previous taxyears. Any unused portion of a credit allowed in this section may be carriedforward for the next succeeding ten years.

(d)        Documentation ofCredit. – A corporation that claims the credit under this section must includethe following with its tax return:

(1)        A statement of thebase year exportation volume.

(2)        A statement of theexportation volume on which the credit is based.

(3)        A list of thecorporation's export volumes shown on its monthly reports to the Alcohol andTobacco Tax and Trade Bureau of the United States Treasury for the months inthe tax year for which the credit is claimed.

(e)        No Double Credit. –A taxpayer may not claim this credit and the credit allowed under G.S. 105‑130.46for the same activity.

(f)         Report. – TheDepartment of Revenue must publish by May 1 of each year the followinginformation itemized by taxpayer for the 12‑month period ending thepreceding December 31:

(1)        The number oftaxpayers taking a credit allowed in this section.

(2)        The total amount ofexports with respect to which credits were taken.

(3)        The total cost tothe General Fund of the credits taken.  (1999‑333, s. 4; 2003‑435, 2nd Ex. Sess.,ss. 5.1, 5.2, 5.3; 2005‑429, s. 2.10.)