Bill > S521

This bill creates a new tax credit program for qualified investment entities (QIEs) that invest in small, community-focused businesses in North Carolina. The bill defines an eligible business as a registered company less than five years old, with 25 or fewer employees, annual revenue under $2 million, and a primary focus on improving community infrastructure and resilience. Qualified investment entities, which must be pass-through entities like partnerships or S-corporations and accredited investors, can receive a 35% tax credit for investments in these eligible businesses. The total tax credit is capped at $5 million statewide per year, with individual investors limited to a $100,000 credit annually. Investors can apply 50% of the credit in the year of investment and carry forward the remaining 50% for up to 10 years. To participate, businesses must register with the Secretary of State, who will provide annual reports on the program's impact, including details about the businesses, capital raised, and jobs created. The application process is first-come, first-served, and the Department of Revenue will review and approve applications. The tax credit program will become effective for taxable years beginning on or after January 1, 2025, aiming to support small, community-focused businesses by providing a financial incentive for investment.

https://www.ncleg.gov/BillLookUp/2025/S521