This Alert summarizes all the material amendments to Chapter 105 of the North Carolina General Statutes ratified to date during the General Assembly’s 2024 short session....more
On April 3, 2023, the North Carolina Business Court issued opinions handing taxpayers decisive victories in two cases that are part of a long-running dispute over the state’s now-expired renewable energy tax credit program. ...more
The North Carolina General Assembly ended its 2022 short session on July 1. While the legislature is scheduled to reconvene on July 26, no additional tax legislation is expected to be considered....more
7/8/2022
/ Captive Insurance Company ,
Coronavirus/COVID-19 ,
Corporate Taxes ,
Franchise Taxes ,
General Assembly ,
Income Taxes ,
Payroll Taxes ,
Pending Legislation ,
Property Tax ,
Sales Tax ,
State and Local Government ,
State Budgets ,
State Taxes ,
Wildlife Protection
On November 15, 2021, after months of negotiations and four and a half months into the new fiscal year, the North Carolina General Assembly released Senate Bill 105, its proposed budget bill (the "Bill"). Both Chambers...more
11/19/2021
/ Corporate Taxes ,
General Assembly ,
Governor Cooper ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Pass-Through Entities ,
Popular ,
Property Tax ,
Sales Tax ,
State Budgets ,
State Legislatures ,
State Taxes ,
Tax Credits
The North Carolina General Assembly concluded the regular business of its 2020 session on Friday, June 26, 2020. While the session will not formally adjourn until September 3, 2020, the only business expected to be considered...more
House Bill 1080, containing the Revenue Laws Study Committee’s recommended tax changes, was introduced in the General Assembly on May 14, 2020. The bill has passed its first reading and is now in committee. This Alert...more
The North Carolina General Assembly convened on April 28, 2020, and a number of bills immediately were introduced to address various aspects of the coronavirus (COVID-19) crisis. Several of these bills included important...more
On March 27, 2020 President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (HR 748) (“CARES Act”) shortly after the bill cleared the House. The Senate had passed the measure the day before....more
Today, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act” or the “Act”), which the Senate approved on the evening of March 25th, received House approval and was signed by the President into law. The Act...more
The Families First Coronavirus Response Act (the “COVID-19 Response Act”), enacted on March 18, 2020, imposes two new coronavirus (COVID-19) related employment mandates on employers with fewer than 500 employees. ...more
This Alert summarizes the more significant tax provisions enacted by the North Carolina General Assembly in 2019. The most important tax changes were originally included in House Bill 966, the 2019 Appropriations Act (the...more
11/12/2019
/ Apportionment ,
Appropriations Bill ,
Corporate Taxes ,
Department of Revenue ,
Digital Marketplace ,
E-Commerce ,
Franchise Taxes ,
General Assembly ,
Governor Vetoes ,
Income Taxes ,
Online Marketplace ,
Pending Legislation ,
Sales Tax ,
State Budgets ,
Tax Code ,
Tax Credits ,
Tax Cuts and Jobs Act ,
Tax Deductions
This Alert summarizes the more significant tax provisions included in House Bill 966, the 2019 Appropriations Act (the “Bill”). The Bill, a Conference Committee measure reconciling the House and Senate budget proposals, was...more
A previous Alert dated April 9th, summarized the North Carolina Senate’s original tax plan for 2019 as set forth in the first edition of Senate Bill 622. Since then, the House passed its version of the 2019 appropriations...more
5/20/2019
/ Appropriations Bill ,
Corporate Taxes ,
Internet Retailers ,
Interstate Commerce ,
Out-of-State Companies ,
Physical Presence Test ,
Property Tax ,
Sales & Use Tax ,
South Dakota v. Wayfair ,
Tax Cuts and Jobs Act ,
Tax Liability
On April 3rd, the Senate released its 2019 tax plan - Senate Bill 622. If enacted, the bill would make important tax changes for businesses, including a phased reduction of the franchise tax rate, implementation of...more
4/10/2019
/ Federal Grants ,
Franchise Taxes ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Internet Retailers ,
Market Based Approach ,
Proposed Legislation ,
Sales Tax ,
State and Local Government ,
Tax Credits ,
Tax Cuts and Jobs Act ,
Tax Reform
The “five-year active trade or business” or “ATB” requirement of section 355 is notorious for defeating many otherwise promising tax-free spin-off transactions. Consider the following common scenarios...
Originally...more
On August 7, 2018, the North Carolina Department of Revenue issued a Directive (SD-18-6) requiring remote sellers to begin collecting North Carolina sales tax on sales of goods and services to North Carolina customers. The...more
On June 21, the United States Supreme Court issued its long-awaited opinion in South Dakota v. Wayfair, Inc. Overturning more than half a century of precedent, the Court ruled that a state may require a remote seller to...more
6/27/2018
/ Appeals ,
Commerce Clause ,
Constitutional Challenges ,
Internet Retailers ,
Interstate Commerce ,
Out-of-State Companies ,
Physical Presence Test ,
Quill ,
Reversal ,
Sales & Use Tax ,
SCOTUS ,
South Dakota v. Wayfair ,
Substantial Nexus
On June 1, 2018, the General Assembly ratified and sent to the Governor the Appropriations Act of 2018 (the Act). The Act includes numerous changes to North Carolina’s tax laws....more
Previous Alerts dated April 17 and May 15 described the North Carolina draft tax legislation developed by the Revenue Laws Study Committee for introduction in the General Assembly’s short session, which began on Wednesday....more
On Tuesday, May 8th, the General Assembly’s Revenue Laws Study Committee released a revised version of its draft tax bill intended for introduction in the legislature’s upcoming short session. The original version of the...more
On April 11, 2018, the General Assembly’s Revenue Laws Study Committee released a draft tax bill for possible introduction in the legislative session that convenes May 16. This Alert provides a summary of the more important...more
4/18/2018
/ Agricultural Workers ,
Breweries ,
Captive Insurance Company ,
Corporate Taxes ,
Federal Taxes ,
Foreign Derived Intangible Income (FDII) ,
Franchise Taxes ,
GAAP ,
GILTI tax ,
Historical Rehabilitation ,
Income Taxes ,
Intangible Property ,
Internal Revenue Code (IRC) ,
IRS ,
Limited Liability Company (LLC) ,
Opportunity Zones ,
Partnerships ,
Prescription Drugs ,
Property Tax ,
Proposed Legislation ,
Reconciliation ,
Repatriation ,
Sales & Use Tax ,
Sales Factor ,
Service Contracts ,
Suspensions ,
Tax Credits ,
Tax Exemptions ,
Tax Extensions ,
Tax Legislation ,
Tax Liability ,
Tax Returns ,
Wineries
Two previous Tax Alerts, Tax Provisions in the 2017 Budget Bill (June 20, 2017) and Tax Legislation Enacted During the Regular Session of the 2017 North Carolina General Assembly (June 30, 2017), summarized the major tax...more
9/15/2017
/ Corporate Taxes ,
Franchise Taxes ,
Historical Rehabilitation ,
Holding Companies ,
Income Apportionment ,
Income Taxes ,
Non-Resident Income Taxes ,
Property Tax ,
Sales Tax ,
Tax Credits ,
Tax Deductions
A previous Tax Alert (June 20, 2017) summarized the tax provisions in the North Carolina 2017 budget bill (the Appropriations Act of 2017) as passed by the General Assembly. The Governor later vetoed the budget bill, but the...more
The General Assembly released today the Proposed Conference Committee Substitute (the “Conference Bill”) for Senate Bill 257, the state budget bill. The Conference Bill is expected to be approved by the General Assembly later...more
A number of amendments to North Carolina’s sales tax laws applicable to the construction industry took effect January 1, 2017. These amendments will provide welcome relief to many contractors engaged in new construction....more