§ 105-163.012. (Repealed effective for investments made on or after January 1, 2011) Limit; carry-over; ceiling; reduction in basis. - North Carolina Statutes

§ 105‑163.012. (Repealed effective for investments made on or after January 1, 2011) Limit;carry‑over; ceiling; reduction in basis.

(a)        (Effective fortaxable years beginning before January 1, 2009) The credit allowed ataxpayer under G.S. 105‑163.011 may not exceed the amount of income taximposed by Part 2 of this Article for the taxable year reduced by the sum ofall other credits allowable except tax payments made by or on behalf of thetaxpayer. The amount of unused credit allowed under G.S. 105‑163.011 maybe carried forward for the next five succeeding years. The fifty thousanddollar ($50,000) limitation on the amount of credit allowed a taxpayer underG.S. 105‑163.011 does not apply to unused amounts carried forward underthis subsection.

(a)        (Effective fortaxable years beginning on or after January 1, 2009) The credit allowed ataxpayer under G.S. 105‑163.011 may not exceed the amount of income taximposed by Part 2 of this Article for the taxable year reduced by the sum ofall other credits allowable except tax payments made by or on behalf of thetaxpayer. The amount of unused credit allowed under G.S. 105‑163.011 maybe carried forward for the next five succeeding years.

(b)        (Effective forinvestments made before January 1, 2008) The total amount of all taxcredits allowed to taxpayers under G.S. 105‑163.011 for investments madein a calendar year may not exceed seven million dollars ($7,000,000). TheSecretary of Revenue shall calculate the total amount of tax credits claimedfrom the applications filed pursuant to G.S. 105‑163.011(c). If the totalamount of tax credits claimed for investments made in a calendar year exceedsthis maximum amount, the Secretary shall allow a portion of the credits claimedby allocating the maximum amount in tax credits in proportion to the size ofthe credit claimed by each taxpayer.

(b)        (Effective forinvestments made on or after January 1, 2008) The total amount of all taxcredits allowed to taxpayers under G.S. 105‑163.011 for investments madein a calendar year may not exceed seven million five hundred thousand dollars($7,500,000). The Secretary of Revenue shall calculate the total amount of taxcredits claimed from the applications filed pursuant to G.S. 105‑163.011(c).If the total amount of tax credits claimed for investments made in a calendaryear exceeds this maximum amount, the Secretary shall allow a portion of thecredits claimed by allocating the maximum amount in tax credits in proportionto the size of the credit claimed by each taxpayer.

(c)        If a credit claimedunder G.S. 105‑163.011 is reduced as provided in this section, theSecretary shall notify the taxpayer of the amount of the reduction of thecredit on or before December 31 of the year following the calendar year inwhich the investment was made. The Secretary's allocations based onapplications filed pursuant to G.S. 105‑163.011(c) are final and shallnot be adjusted to account for credits applied for but not claimed.

(d)        The taxpayer'sbasis in the equity securities or subordinated debt acquired as a result of aninvestment in a qualified business shall be reduced for the purposes of thisArticle by the amount of allowable credit. "Allowable credit" meansthe amount of credit allowed under G.S. 105‑163.011 reduced as providedin subsection (c) of this section.  (1987, c. 852, s. 1; 1987 (Reg. Sess., 1988), c. 882,ss. 4, 4.1; 1989 (Reg. Sess., 1990), c. 848, s. 4; 1991, c. 637, s. 3; 1993, c.443, s. 3; 1993 (Reg. Sess., 1994), c. 745, s. 8; 1996, 2nd Ex. Sess., c. 14,ss. 6, 7; 1998‑98, s. 71; 1998‑212, s. 29A.15(a); 2003‑414,s. 4; 2004‑124, s. 32C.1; 2008‑107, s. 28.26(a); 2009‑445, s.9(b).)