Last week, two important changes to the NC tax law went through the General Assembly. House Bill 279: COVID-19 Related Tax Changes/UI Technical Corrections, which clarifies that federal stimulus payments received as COVID-19 relief payments are not considered income for purposes of determining eligibility for property tax exemptions went to the Senate floor. This bill passed the House in recent weeks and is awaiting final action from the Senate. House Bill 334: Temporarily Align PPP Treatment to Federal Treatment allows individuals and corporate taxpayers an income tax deduction for expenses paid using a loan forgiven under the Paycheck Protection Program. This bill passed the House on April 22 and moved to the Senate on April 23.
A notable piece of legislation is Senate Bill 493: JDIG Multi-location Projects Modifications. SB 493 modifies multi-location project enhancements for the Job Development Investment Grant program. This bill mandates a 10 percent increase of the annual grant approved for disbursement payable to a qualifying business. It also provides that the amount of the increase is not to be used in calculating award limitations under the program. As of April 21, the bill passed the Senate Finance Committee and was re-referred to the Senate Committee on Rules.
Finally, House Bill 366: Regulatory Reform Act of 2021 provides further regulatory relief to the citizens of North Carolina. This bill is organized into several components, which include increasing limits on public employees benefiting from public contracts, NC Pre-K School options, and allows distilleries to sell mixed beverages produced by the distiller directly to consumers in other states. This bill passed the House on April 21 and was referred to the Committee on Rules and Operations of the Senate on April 22.
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