§ 105-130.9. Contributions. - North Carolina Statutes

§ 105‑130.9. Contributions.

Contributions shall be allowedas a deduction to the extent and in the manner provided as follows:

(1)        Charitablecontributions as defined in section 170(c) of the Code, exclusive ofcontributions allowed in subdivision (2) of this section, shall be allowed as adeduction to the extent provided herein. The amount allowed as a deductionhereunder shall be limited to an amount not in excess of five percent (5%) ofthe corporation's net income as computed without the benefit of thissubdivision or subdivision (2) of this section. Provided, that a carryover ofcontributions shall not be allowed and that contributions made to NorthCarolina donees by corporations allocating a part of their total net incomeoutside this State shall not be allowed under this subdivision, but shall beallowed under subdivision (3) of this section.

(2)        Contributions by anycorporation to the State of North Carolina, any of its institutions,instrumentalities, or agencies, any county of this State, its institutions,instrumentalities, or agencies, any municipality of this State, itsinstitutions, instrumentalities, or agencies, and contributions or gifts by anycorporation to educational institutions located within North Carolina, no partof the net earnings of which inures to the benefit of any private stockholdersor dividend. For the purpose of this subdivision, the words "educationalinstitution" shall mean only an educational institution which normallymaintains a regular faculty and curriculum and normally has a regularlyorganized body of students in attendance at the place where the educationalactivities are carried on. The words "educational institution" shallbe deemed to include all of such institution's departments, schools and colleges,a group of "educational institutions" and an organization(corporation, trust, foundation, association or other entity) organized andoperated exclusively to receive, hold, invest and administer property and tomake expenditures to or for the sole benefit of an "educationalinstitution" or group of "educational institutions."

(3)        Corporationsallocating a part of their total net income outside North Carolina under theprovisions of G.S. 105‑130.4 shall deduct from total income allocable toNorth Carolina contributions made to North Carolina donees qualified undersubdivisions (1) and (2) of this section or made through North Carolina officesor branches of other donees qualified under the above‑mentionedsubdivisions of this section; provided, such deduction for contributions madeto North Carolina donees qualified under subdivision (1) of this section shallbe limited in amount to five percent (5%) of the total income allocated toNorth Carolina as computed without the benefit of this deduction forcontributions.

(4)        (Effective fortaxable years beginning before January 1, 2011) The amount of acontribution for which the taxpayer claimed a tax credit pursuant to G.S. 105‑130.34or G.S. 105‑130.48 shall not be eligible for a deduction under thissection. The amount of the credit claimed with respect to the contribution isnot, however, required to be added to income under G.S. 105‑130.5(a)(10).

(4)        (Effective fortaxable years beginning on or after January 1, 2011) The amount of acontribution for which the taxpayer claimed a tax credit pursuant to G.S. 105‑130.34shall not be eligible for a deduction under this section. The amount of thecredit claimed with respect to the contribution is not, however, required to beadded to income under G.S. 105‑130.5(a)(10). (1939, c. 158, s. 322; 1941,c. 50, s. 5; 1943, c. 400, s. 4; c. 668; 1945, c. 708, s. 4; c. 752, s. 3;1947, c. 501, s. 4; c. 894; 1949, c. 392, s. 3; 1951, c. 643, s. 4; c. 937, s.4; 1953, c. 1031, s. 1; c. 1302, s. 4; 1955, c. 1100, s. 1; c. 1331, s. 1; cc.1332, 1342; c. 1343, s. 1; 1957, c. 1340, ss. 4, 8; 1959, c. 1259, s. 4; 1961,c. 201, s. 1; c. 1148; 1963, c. 1169, s. 2; 1965, c. 1048; 1967, c. 1110, s. 3;1969, c. 1175, s. 1; 1973, c. 1287, s. 4; 1983, c. 713, s. 82; c. 793, s. 2;1995, c. 370, s. 4; 2006‑66, s. 24.18(b).)