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SB 530

Creating the West Virginia Land Sovereignty Act

2025 Regular Session Introduced by Craig Hart and 2 co-sponsors

Reenacts NC R&D tax credit (Article 3F), extends sunset to 1/1/2030, retroactive to 2022, to attract and retain research jobs and activity in North Carolina.

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Bill Summary · SB 530

SB 530 — Research and Development Attraction Act (Summary)

Status: Passed 1st Reading (Introduced Feb 20, 2025)
Subject areas: Commerce; Corporate income; Corporations (for‑profit & nonprofit); Public research; Tax credits; Taxation

Purpose and intent

SB 530 reenacts North Carolina’s research & development (R&D) tax credit regime (Article 3F of Chapter 105) that had been previously repealed, with updated definitions and an extended statutory sunset. The stated goal is to restore a state R&D credit to help attract and retain R&D activity, support job creation, and improve the State’s competitiveness for research‑intensive businesses.

Key provisions

  • Reenactment: Article 3F (the R&D tax credit) is reenacted as it existed immediately prior to repeal.
  • Definitions updated/clarified:
    • “Full‑time job” is defined as a position requiring at least 1,600 hours per year (intended to be held by one employee for the year).
    • “Related person” is tied to federal Code relationships (sections 267(b) and 707(b)).
    • Other federal Code cross‑references from section 41 of the Internal Revenue Code are adopted for use throughout the Article.
  • Eligibility and standards: Taxpayers claiming the credit must meet taxpayer standards (cross‑referencing G.S. 105‑129.83(c)–(g)), including requirements related to:
    • Wage standards,
    • Health insurance provision,
    • Environmental impact considerations,
    • Workplace safety and health programs,
    • Outstanding state tax debts (overdue tax debts may bar eligibility).
  • Sunset date: The Article’s repeal date is extended — the bill changes the statutory repeal from taxable years beginning on or after January 1, 2016 to taxable years beginning on or after January 1, 2030 (i.e., the reenacted credit remains available through tax years beginning before 1/1/2030).
  • Effective date / application:
    • Effective for taxable years beginning on or after January 1, 2023.
    • The reenacted credit is explicitly made applicable to corporate (franchise) tax returns for tax year 2022 and later (i.e., it can affect returns filed for the 2022 tax year onward).

Who is affected

  • Corporations and other taxpayers that perform qualifying R&D activities in North Carolina and file state corporate/franchise income tax returns (including taxpayers that previously would have been eligible under the old Article 3F).
  • Related parties and affiliates that fall within the statutory “related person” definitions.
  • State tax administration (Revenue Department) — implementation, forms, and compliance activity.
  • Potential indirect effects on employers, universities, and nonprofit research organizations that partner with for‑profit entities (depending on credit rules and project structures).

Potential impacts and considerations

  • Economic: Intended to incentivize private R&D investment and job creation in NC; may help attract/retain research‑intensive firms.
  • Fiscal: Reinstating an R&D credit usually reduces near‑term corporate tax receipts; net fiscal impact will depend on take‑up, the credit formula (as reenacted), and any statutory caps or certification requirements. This bill text does not include explicit revenue estimates.
  • Administrative: Requires the Department of Revenue to administer claims, and taxpayers must satisfy statutory eligibility and documentation standards.
  • Timeframe: Because the credit is effective for tax years beginning 1/1/2023 and applies to 2022 returns, taxpayers and preparers should note retroactive application when filing amended returns or claiming credits for 2022 and later.

Where to read the law text / cross references

  • Reenacted provisions are in Article 3F, Chapter 105, and rely on definitions in IRC section 41 and state sections cited (e.g., G.S. 105‑129.50, 105‑129.51, and 105‑129.83). For full claim mechanics, eligibility tests, and credit calculation rules, consult the reenacted Article 3F text and implementing guidance from the Department of Revenue.

Compiled from official sources — confirm details with the bill’s official record.

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