Norht Carolina - Business Expansion Tax Incentives Expanded - The SALT Group®

State and Local Tax Services - Accounts Payable Review, State Audit Representation



		For Immediate Release April 26, 2004 North Carolina – Business Expansion, Tax Incentives Expanded Business expansion tax credits for multiple taxes are extended to pharmaceutical and bioprocessing entities. Business expansion tax credits against North Carolina franchise, corporate income, personal income, and insurance premium taxes have been extended to pharmaceutical and bio processing companies. In an already medically saturated market, effective for years beginning after 2003, the DOR has issued business expansion tax credits, including job creation, machinery and equipment investment, R & D, and worker training to entities engaged in the manufacturing of pharmaceuticals and medicines, as well as in bioprocessing. After 2003, a pharmaceutical or bioprocessing facility is eligible for an annual refund of sales and use tax on building materials and supplies, fixtures, and equipment that become part of the real property of a facility. Written request for refund must be made within 6 months after the end of the state’s fiscal year. Turning to the other major industry in the state, suffering from an already depressed market, the corporate income tax credit for exportation of cigarettes is extended, and a new cigarette exportation and job creation credit against franchise and corporate income taxes is added. After 2005, a cigarette manufacturer and exporter increasing employment in the state is eligible for a franchise and corporate income tax credit. To qualify, the manufacturer must maintain an employment level in North Carolina that exceeds the corporation’s employment level at the end of 2004 by 800 full-time jobs. A 10-year carryforward of any unused credit is allowed. A taxpayer may not claim this credit and the business expansion tax credit discussed above. If you would like additional information on this topic or have any questions, please contact Don Behel, Regional Vice President - Sales & Use Tax Group (615) 851-5555. E-mail dbehel@thesaltgroup.com Back to Main News Page



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