Vetoed by Governor Roy Cooper III

Vote Smart's Synopsis:

Vote to pass a bill that reduces the state corporate tax rate.

Highlights:

• Establishes the Film and Entertainment Grant Fund for the purpose of providing funds for encouraging the production of motion pictures, television shows, movies for television, productions intended for on-line distribution, and commercials, and developing the filmmaking industry in North Carolina (Sec. 2).

• Defines “qualified group” as an electric power company that is an affiliated group with one or more members (Sec. 1).

• Amends corporate tax rates for taxable years beginning on or after January 1, 2021 in the following ways (Sec. 1):

• Establishes the tax rate for an electric power company or a company that is a member of a qualified group as one $1.50 per $1,000 of the corporation’s tax base;

• Establishes the tax rate for all other C Corporations as $1.29 per $1,000 of the corporation’s tax base;

• Establishes the tax rate for an S Corporation as $1.29 per $1,000 of its tax base that exceeds $1 million; and

• Requires every corporation taxed under this section to pay annually to the Secretary of Revenue, at the time the return is due, the greater of the following:

• A franchise or privilege tax at the rate set in the preceding highlights per $1,000 of the company’s tax base for an electric power company or a company that is a member of a qualified group; or

• If the tax exceeds the tax calculated under the above sub-highlight, then the tax is levied at the rate set in the preceding highlights per $1,000 on the total actual investment in tangible property in North Carolina of such corporation as computed in the preceding highlights.

• Amends corporate tax rates for taxable years beginning on or after January 1, 2022 in the following ways (Sec. 1):

• Establishes the tax rate for an electric power company or a company that is a member of a qualified group as $1.50 per $1,000 of the corporation’s tax base;

• Establishes the tax rate for all other C Corporations as $.96 per $1,000 of the corporation’s tax base; and

• Establishes the tax rate for an S Corporation as $200 for the first $1 million of the corporation’s tax base, and $.96 per $1,000 of its tax base that exceeds $1 million.

• Amends corporate tax rates for taxable years beginning on or after January 1, 2027 in the following ways (Sec. 1):

• Establishes the tax rate for all C Corporations as $.96 per $1,000 of the corporation’s tax base; and

• Establishes the tax rate for an S Corporation as $200 for the first $1 million of the corporation’s tax base, and $.96per $1,000 of its tax base that exceeds $1 million.

Full Bill Text