North Carolina § 105-129 - 55. (See note for repeal) Credit for North Carolina research and development.

§ 105-129. 55. (See note for repeal) Credit for North Carolina research and development.

Qualified North Carolina Research Expenses. - A taxpayer that has qualified North Carolina research expenses for the taxable year is allowed a credit equal to a percentage of the expenses, determined as provided in this section. Only one credit is allowed under this section with respect to the same expenses. If more than one subdivision of this section applies to the same expenses, then the credit is equal to the higher percentage, not both percentages combined. If part of the taxpayer's qualified North Carolina research expenses qualifies under more than one subdivision of this section, the applicable percentages apply separately to each part of the expenses. Small business. - If the taxpayer was a small business as of the last day of the taxable year, the applicable percentage is three and one-quarter percent (3.25%). Low-tier research. - For expenses with respect to research performed in a development tier one area, the applicable percentage is three and one-quarter percent (3.25%). University research. - For North Carolina university research expenses, the applicable percentage is twenty percent (20%). Eco-Industrial Park. - For expenses with respect to research performed in an Eco-Industrial Park certified under G.S. 143B-437.08, the applicable percentage is thirty-five percent (35%). Other research. - For expenses not covered under another subdivision of this section, the percentages provided in the table below apply to the taxpayer's qualified North Carolina research expenses during the taxable year at the following levels: Repealed by Session Laws 2010-147, s. 5.5, effective January 1, 2011. Expenses Over Up To Rate -0- $50 million 1.25% $50 million $200 million 2.25% $200 million - 3.25% History (2004-124, s. 32D.2; 2006-252, s. 2.1; 2007-323, s. 31.8(a); 2010-147, s. 5.5.) Article has a Delayed Repeal Date. - For delayed repeal of Article 3F, see G.S. 105-129.51(b) . Effect of Amendments. - Session Laws 2005-429, s. 2.6, effective January 1, 2007, in the introductory language, substituted "publish" for "report to the Revenue Laws Study Committee and the Fiscal Research Division of the General Assembly" and "December 31" for "April 1"; substituted "took" for "claimed" in subdivision (1); and substituted "taken" for "claimed" in subdivisions (2) and (3). Session Laws 2006-252, s. 2.1, effective January 1, 2007, substituted "a development tier one" for "an enterprise tier one, two, or three" in subdivision (a)(2). Session Laws 2007-323, s. 31.8(a), effective for taxable years beginning on or after January 1, 2007, in subsection (a), substituted "three and one-quarter percents (3.25%)" for "three percent (3%)" at the end of subdivisions (a)(1) and (a)(2), and, in the table in subdivision (a)(3), substituted "(1.25%)" for "(1%)," "(2.25%)" for "(2%)," and "(3.25%)" for "(3%)"; and substituted "twenty percent (20%)" for "fifteen percent (15%)" in subsection (b). Session Laws 2010-147, s. 5.5, effective for taxable years beginning on or after January 1, 2011, in the first paragraph substituted "section" for "subsection" throughout, and in the last sentence, substituted "under more than one subdivision of this section" for "under subdivision (2) of this subsection and the remainder qualifies under subdivision (3) of this subsection"; added subdivisions (2a) and (2b); in subdivision (3), substituted "under another subdivision of this section" for "under subdivision (1) or (2) of this subsection"; and deleted subsection (b), which pertained to North Carolina University Research expenses.