GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

 

 

SESSION LAW 1998-100

HOUSE BILL 1422

 

 

AN ACT TO REMOVE UNCONSTITUTIONAL RESTRICTIONS ON INDIVIDUAL INCOME TAX CREDITS FOR CHILD CARE AND FOR CONSTRUCTING DWELLINGS FOR THE HANDICAPPED.

 

The General Assembly of North Carolina enacts:

 

Section 1.  G.S. 105-151.1 reads as rewritten:

"§ 105-151.1.  Tax credit Credit for construction of dwelling units for handicapped persons.

There is allowed to resident owners An owner of multifamily rental units located in this State as is allowed a credit against the tax imposed by this Division an amount equal to five hundred fifty dollars ($550.00) for each dwelling unit constructed by the resident owner that conforms to Volume I-C of the North Carolina Building Code for the taxable year within which the construction of the dwelling unit is completed.  The credit is allowed only for dwelling units completed during the taxable year that were required to be built in compliance with Volume I-C of the North Carolina Building Code.  If the credit allowed by this section exceeds the tax imposed by this Division reduced by all other credits allowed, the excess may be carried forward for the next succeeding year.  In order to claim the credit allowed by this section, the taxpayer shall file with its must file with the income tax return a copy of the occupancy permit on the face of which is recorded by the building inspector the number of units completed during the taxable year that conform to Volume I-C of the North Carolina Building Code.  After recording the number of these units on the face of the occupancy permit, the building inspector shall promptly forward a copy of the permit to the Building Accessibility Section of the Department of Insurance."

Section 2.  G.S. 105-151.11(c) reads as rewritten:

"(c)      Limitations. -  A nonresident or part-year resident who claims the credit allowed by this section shall reduce the amount of the credit by multiplying it by the fraction calculated under G.S. 105-134.5(b) or (c), as appropriate.  No credit shall be allowed under this section for amounts deducted from gross income in calculating taxable income under the Code.  The credit allowed by this section may not exceed the amount of tax imposed by this Division for the taxable year reduced by the sum of all credits allowable under this Division, except for payments of tax made by or on behalf of the taxpayer.  No credit shall be allowed under this section with respect to employment-related expenses paid by a nonresident of this State."

Section 3.  This act is effective for taxable years beginning on or after January 1, 1998.

In the General Assembly read three times and ratified this the 6th day of August, 1998.

s/   Dennis A. Wicker

President of the Senate

 

s/   Harold J. Brubaker

Speaker of the House of Representatives

 

s/   James B. Hunt, Jr.

Governor

 

Approved 2:00 p.m. this 17th day of August, 1998