North Carolina § 105-164 - 14A. Economic incentive refunds.

§ 105-164. 14A. Economic incentive refunds.

Refund. - The following taxpayers are allowed an annual refund of sales and use taxes paid under this Article: Repealed pursuant to its own terms, effective for purchases made on or after January 1, 2016. Major recycling facility. - An owner of a major recycling facility is allowed a refund of the sales and use tax paid by it on building materials, building supplies, fixtures, and equipment that become a part of the real property of the recycling facility. Liability incurred indirectly by the owner for sales and use taxes on these items is considered tax paid by the owner. Repealed by Session Laws 2016-5, s. 3.14, effective May 11, 2016. (Repealed for purchases made on or after January 1, 2024) Motorsports team or sanctioning body. - A professional motorsports racing team, a motorsports sanctioning body, or a related member of such a team or body is allowed a refund of the sales and use tax paid by it in this State on aviation gasoline or jet fuel that is used to travel to or from a motorsports event in this State, to travel to a motorsports event in another state from a location in this State, or to travel to this State from a motorsports event in another state. For purposes of this subdivision, a "motorsports event" includes a motorsports race, a motorsports sponsor event, and motorsports testing. This subdivision is repealed for purchases made on or after January 1, 2024. (Repealed for purchases made on or after January 1, 2024) Professional motorsports team. - A professional motorsports racing team or a related member of a team is allowed a refund of fifty percent (50%) of the sales and use tax paid by it in this State on tangible personal property, other than tires or accessories, that comprises any part of a professional motorsports vehicle. For purposes of this subdivision, "motorsports accessories" includes instrumentation, telemetry, consumables, and paint. This subdivision is repealed for purchases made on or after January 1, 2024. Repealed pursuant to its own terms, effective for purchases made on or after January 1, 2014. (Repealed for purchases made on or after January 1, 2038) Railroad intermodal facility. - The owner or lessee of an eligible railroad intermodal facility is allowed a refund of sales and use tax paid by it under this Article on building materials, building supplies, fixtures, and equipment that become a part of the real property of the facility. Liability incurred indirectly by the owner or lessee of the facility for sales and use taxes on these items is considered tax paid by the owner or lessee. This subdivision is repealed for purchases made on or after January 1, 2038. Transformative projects. - An owner or lessee of a business that is the recipient of a grant under the Job Development Investment Grant Program on or before June 30, 2019, for a transformative project as defined in G.S. 143B-437.51(9a) is allowed a refund of the sales and use tax paid by it on building materials, building supplies, fixtures, and equipment that become a part of the real property of the facility. Liability incurred indirectly by the owner for sales and use taxes on these items is considered tax paid by the owner. Administration. - A request for a refund must be in writing and must include any information and documentation required by the Secretary. A request for a refund is due within six months after the end of the State's fiscal year. Refunds applied for after the due date are barred. Report. - The Department must include in the economic incentives report required by G.S. 105-256 the following information itemized by refund and by taxpayer: The number of taxpayers claiming a refund allowed in this section. The total amount of purchases with respect to which refunds were claimed. The total cost to the General Fund of the refunds claimed. Not an Overpayment. - Taxes for which a refund is allowed under this section are not an overpayment of tax and do not accrue interest as provided in G.S. 105-241.21. History (2010-166, s. 1.18; 2011-330, ss. 15(c), 20(a), 26(b); 2012-36, s. 11(a); 2013-316, s. 3.5(a); 2015-259, s. 6(d); 2016-5, s. 3.14; 2017-39, s. 7; 2017-57, s. 38.9A(a); 2019-237, s. 5(b).) Editor's Note. - Session Laws 2010-166, s. 4, provides in part, "The first claim for refund by a taxpayer whose sales tax refund period is changed by this act is due within six months after July 1, 2010, and applies to purchases during the time period not covered by the taxpayer's last claim for refund." The substitution of "racing team, a motorsports sanctioning body, or a related member of such a team or body" for "racing team or a motorsports sanctioning body" in the second sentence of subdivision (a)(4) by Session Laws 2011-330, s. 15(c), was applicable retroactively to purchases made on or after January 1, 2005. The insertion of "or a related member of a team" in subdivision (a)(5) by Session Laws 2011-330, s. 15(c), was applicable retroactively to purchases made on or after July 1, 2007. The substitution of "January 1, 2013" for "January 1, 2011" in subdivisions (a)(1) and (a)(4) by Session Laws 2011-330, s. 20(a), was applicable retroactively to purchases made on or after January 1, 2011. Session Laws 2012-74, s. 3, as amended by Session Laws 2013-360, s. 6.16, provides: "(a) For calendar year 2010, an interstate passenger air carrier that is eligible for a refund of sales and use taxes paid on fuel in excess of two million five hundred thousand dollars ($2,500,000) under G.S. 105-164.14(a1) and G.S. 105-164.14 A(a)(1) is subject to the provisions of this section, notwithstanding any provisions of G.S. 105-164.14 , G.S. 105-164.14A, or Section 4 of S.L. 2010-166 to the contrary. Notwithstanding the fact that the first six months of 2010 are subject to G.S. 105-164.14(a1) and the last six months of 2010 are subject to G.S. 105-164.14A(a)(1), a taxpayer shall submit one request for a refund for the entire calendar year. "(b) An interstate passenger air carrier is allowed a refund of the sales and use tax paid by it on fuel in excess of one million two hundred fifty thousand dollars ($1,250,000) for the period January 1, 2011, through June 30, 2011. The State portion of the refund is payable in two installments. The first installment, payable in fiscal year 2012-2013, may not exceed three million one hundred fifty thousand dollars ($3,150,000). The remainder of the refund is payable in fiscal year 2013-2014. The amount of sales and use tax paid does not include a refund allowed to the interstate passenger air carrier under G.S. 105-164.14(a) . A request for a refund must be in writing and must include any information and documentation required by the Secretary. The request for a refund is due before October 1, 2012. A refund applied for after the due date is barred." Session Laws 2013-316, s. 9(a), provides: "This act does not affect the rights or liabilities of the State, a taxpayer, or another person arising under a statute amended or repealed by this act before the effective date of its amendment or repeal; nor does it affect the right to any refund or credit of a tax that accrued under the amended or repealed statute before the effective date of its amendment or repeal." Session Laws 2013-360, s. 1.1, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2013.'" Session Laws 2013-360, s. 38.2, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2013-2015 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2013-2015 fiscal biennium." Session Laws 2013-360, s. 38.5 is a severability clause. Session Laws 2015-259, s. 4.1(e), provides: "Notwithstanding G.S. 105-164.14 A(a)(1), an interstate passenger air carrier is allowed a refund of the sales and use tax paid by it on fuel in excess of one million two hundred fifty thousand dollars ($1,250,000) for the period beginning July 1, 2015, and ending December 31, 2015." Session Laws 2017-57, s. 38.9A(b), made subdivision (a)(8), as added by Session Laws 2017-57, s. 38.9A(a), effective July 1, 2017, and applicable to purchases made on or after that date. Session Laws 2017-57, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2017.'" Session Laws 2017-57, s. 39.6, is a severability clause. Session Laws 2019-237, s. 9, provides: "If any provision of this act and G.S. 143C-5-4 are in conflict, the provisions of this act shall prevail." Effect of Amendments. - Session Laws 2011-330, s. 15(c), effective June 27, 2011, and applicable retroactively to purchases made on or after January 1, 2005, substituted "racing team, a motorsports sanctioning body, or a related member of such a team or body" for "racing team or a motorsports sanctioning body" in the second sentence of subdivision (a)(4). Session Laws 2011-330, s. 15(c), effective June 27, 2011, and applicable retroactively to purchases made on or after July 1, 2007, inserted "or a related member of a team" in subdivision (a)(5). Session Laws 2011-330, s. 20(a), effective June 27, 2011, and applicable retroactively to purchases made on or after January 1, 2011, in subdivisions (a)(1) and (a)(4), substituted "January 1, 2013" for "January 1, 2011." Session Laws 2011-330, s. 26(b), effective June 27, 2011, added subsection (d). Session Laws 2012-36, s. 11(a), effective June 20, 2012, substituted "January 1, 2014 " for "January 1, 2013" in the last sentence of subdivisions (a)(1) and (a)(4), and in the introductory paragraph of subdivision (a)(6). Session Laws 2013-316, s. 3.5(a), effective July 23, 2013, substituted "January 1, 2016" for "January 1, 2014" in subdivisions (a)(1), (a)(4), and (a)(5). Session Laws 2015-259, s. 6(d), effective September 30, 2015, substituted "January 1, 2020" for "January 1, 2016" in subdivisions (a)(4) and (a)(5). Session Laws 2016-5, s. 3.14, deleted former subdivision (a)(3), which read: "Business in low-tier area. A taxpayer that is engaged primarily in one of the businesses listed in G.S. 105-129.83(a) in a development tier one area and that places machinery and equipment in service in that area is allowed a refund of the sales and use tax paid by it on the machinery and equipment. For purposes of this subdivision, 'machinery and equipment' includes engines, machinery, equipment, tools, and implements used or designed to be used in one of the businesses listed in G.S. 105-129.83 , capitalized for tax purposes under the Code, and not leased to another party. Liability incurred indirectly by the taxpayer for sales and use taxes on these items is considered tax paid by the taxpayer. The sunset for Article 3J of Chapter 105 of the General Statutes for development tier one areas applies to this subdivision." Session Laws 2017-39, s. 7, effective June 21, 2017, inserted "gasoline or jet" in the first sentence of subdivision (a)(4). Session Laws 2017-57, s. 38.9A(a), added subdivision (a)(8). For effective date and applicability, see editor's note. Session Laws 2019-237, s. 5(a), effective November 1, 2019, substituted "January 1, 2024" for "January 1, 2020" in the last sentence of subdivisions (a)(4) and (a)(5).