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What’s happening in the North Carolina General Assembly and around state government? Here’s a recap of activity and how your business may be impacted.
 
Last week, the North Carolina Senate laid out its 2021 Senate budget. This proposed budget focuses on finance and spending for North Carolina. Under the proposed budget, state employees including teachers and UNC system and community college employees would receive a 3 percent raise over the next two years. The budget also includes tax provisions found in House Bill 334.
 
Additionally, the proposed budget includes a $5 billion rainy day fund for any natural disasters or occurrences. The budget would spend $25.7 billion in 2021-22 and $26.6billion in 2022-23 and $4.3billion will be allocated to the State Capital Infrastructure fund over the next two years. The House begins their budget negotiations this week and ultimately a conference committee will be appointed to resolve the differences between the two chambers before the bill goes to the Governor for his consideration.
 
House Bill 680: Reenact Qualified Business Venture Credit also saw movement this week. The bill provides income tax credits for qualified business investments that are headquartered in a tier one or two county; or are in an opportunity zone. Additionally, the legislation increases the total amount of tax credits in a calendar year to $10 million (up from $7.5 million). The bill would become effective on Jan. 1 and contains an expiration date of Jan. 1, 2025. As of June 22, the bill was re-referred to the House Committee on Rules, Calendar, and Operations. The PCS for HB 680 maintains the former law's credit amount that was equal to 25% of investment with a maximum of $50,000 per individual. However, the PCS increases the statewide maximum to $10 million per year and increases the credit by 10 percent of the credit if the investment is a diversity business. 
 
The following types of investments are defined as qualified business:

1. Qualified business venture
2. Qualified grantee business that has received during the current year or prior 3 years funding from the Small Business Innovation Research Program administered by the US Small Business Administration or from a granting entity (i.e., certain tax-exempt corporations and universities)
3. Qualified licensee business that meets all of the following conditions:
   1. Gross revenues below $1 million
   2. Certified by a research university as currently performing under a licensing agreement with the university for the purpose of commercializing technology developed at the university

 
Governor Cooper issued Executive Order No. 216, which reinstated work search requirements for individuals receiving unemployment insurance. One proposal debated by the General Assembly that offered additional incentives for returning to work was Senate Bill 116: Putting North Carolina Back to Work Act . Senate Bill 116 would end the extra $300 weekly benefit payments to unemployed insurance claimants through September 6, 2021. Common ground was not met at the General Assembly. A conference report was filed to resolve the differences between the Senate and the House of Representatives on Senate Bill 116. The conference report has been adopted and is headed to the Governor’s office.
 
To learn more about our GA priorities, track legislative bills, or to read our blog posts, you can visit our webpage or follow us on Twitter @RcgaJ, @tierra_rcga, or @raleighchamber.  

Tom Barkin focused his talking points on on inflation and how the economy has struggled as a result of the pandemic. He discussed how behaviors during the pandemic, such as lack of spending, isolation, supply chain demands, and the closing of businesses resulted in the rise and fall of inflation over the past year. He believes we are in a temporary adjustment cycle, in which workers will return to the workplace, children will return to schools and fiscal payments will eventually retire. He projected our near term inflation pressure to ease as we go into the fourth quarter. Tom’s remarks were followed with by a discussion with our president and CEO, Adrienne Cole. Tom and Adrienne discussed job security, wage disparities, workforce development, and talent pipelines.

Neil Bradley gave his insight on today’s economy from a public policy perspective. He focused on congressional issues stemming directly from Capitol Hill such as; workforce shortage, right-sizing unemployment benefits, immigration, and federal spending. Neil stated that he believed our 2022 economy would be stronger than ever as a result of the “Great Resurgence”. The panel discussed top legislative issues affecting our state. Our panelists addressed North Carolina’s current state on government spending, education access, healthcare access, and workforce development.​

Make sure to save-the-date for our next event - the State of the City, County & Schools on July 22. This in-person event will be a great opportunity to hear priorities and policies from the following representatives: Mayor of the City of Raleigh, Chair of the Wake County Board of Commissioners, and Chair of the Wake County Board of Education.

You can register on our website. We hope to see you on July 22 at 11:30 a.m. ​

What’s happening in the North Carolina General Assembly and around state government? Here’s a recap of activity and how your business will be impacted.
 
Important discussions began last week around House Bill 951, a major piece of legislation designed to modernize our energy infrastructure and ensure that North Carolina has clean, reliable, and affordable energy generation. House Bill 951: Modernizing Energy Generation, is sound energy policy that moves our community forward in a multitude of ways. The bill strengthens existing customer-facing solar programs like Green Source Advantage, which businesses look to support sustainability goals and help reduce the carbon footprint. The bill also supports balanced energy transition in North Carolina at a pace that ensures continued reliability and affordability that businesses depend on.
 
The bill is a product of a lengthy stakeholder group that has been occurring over the past several months. While there will certainly be numerous changes as the legislation moves through the legislative process, we are hopeful that discussions will continue, and the General Assembly will address this vital issue for the future of our economy. The economic development efforts of our region benefit when there is an “All of the Above” energy strategy in place. We will continue to update you as the legislation moves forward.
 
For the past few months, the North Carolina General Assembly has been working to update North Carolina Labor Laws. Senate Bill 208: Labor Law Changes would do all of the following:
 

1. Clarifies that the medical records obtained under G.S. 95-133(b)(13) must be kept separate from an investigative file and must not be released to an employer under investigation except as necessary to support the issuance of a citation in an OSHANC enforcement proceeding.
2. Repeals the article addressing regulation of job listing services.
3. Makes clarifying changes to statutes addressing youth employment certificates and payment to separated employees.
4. Requires employers to notify employees, in writing, at least one pay period prior to changes in wages, and (5) provides that the maximum penalty for employers who violate record keeping requirements must not exceed $2,000 per violation.

 
The bill passed the Senate and is now being debated in the House. We will monitor the legislation as it moves forward so business leaders are aware of any significant changes to North Carolina Labor Laws.
 
To learn more about our GA priorities, track legislative bills, or to read our blog posts, you can visit our webpage or follow us on Twitter @RcgaJ, @tierra_rcga, or @raleighchamber.  

What’s happening in the North Carolina General Assembly and around state government? Here’s a recap of activity and how your business will be impacted.
 
Here’s an update on House Bill 334: Temp Align PPP Treatment to Federal Treatment. This bill would allow individuals and corporate taxpayers an income tax deduction for expenses paid using a loan forgiven under the Paycheck Protection Program. The Senate PCS for HB 334 replaces its contents with the JOBS Grant Program and Tax Changes for 2021. The Senate PCS for House Bill 334 has four parts.
 

1. JOBS Grant Program: Appropriates $1 billion of federal funds from the American Rescue Plan Act of 2021 to provide grants to NC businesses that received a COVID-related loan from the State or federal government. The maximum grant amount would be $18,750 and determined by multiplying the lesser of the award amount or $250,000 of the award by 7.5 percent.

 

1. Tax Policy Initiatives includes the following:
   • Reduces individual and corporate income taxes
   • Simplifies the franchise tax
   • Extends the sunset on the mill rehabilitation tax credits for two years
   • Modifies the gross premiums tax and the tax on cigars
   • Imposes a sales tax on peer-to-peer vehicle rentals
   • Changes the calculation of the late tax payment penalty
   • Exempts vaccines and cemetery property from the local property tax base

 

1. IRC Update and Related Changes: Updates the IRC reference date from May 1, 2020 to April 1, 2021. This change permanently reduces the medical expense deduction threshold from 10 percent of AGI to 7.5 percent. This Part also enacts a SALT cap election for pass-through entities and provides a separate net operating loss calculation for individual taxpayers.

 

1. Revenue Laws Study Committee Recommendations: Makes technical, clarifying, and administrative changes to the tax law as suggested by the Department of Revenue and recommended by the Revenue Laws Study Committee.

 
The Senate substitute for HB 334 passed the Senate and awaits a concurrence vote in the House. If the House does not concur with the Senate proposal, a conference committee will be appointed to negotiate the differences between the two approaches to PPP forgiveness and tax policy.
 
Another notable piece of legislation that made its way through the General Assembly last week was Senate Bill 722: Revise Municipal Redistricting/ Census. Senate Bill 722, as passed by the House, would delay the Raleigh municipal elections from October 2021 to November 2022 and move future Raleigh municipal elections to even numbered years.
 
Additionally, the House proposal changes the election to one of non-partisan plurality, meaning that candidates will not run under a traditional party ballot and the runoff requirement would be eliminated. The terms of the officers currently serving on Raleigh City Council would be extended until November 2022 or his/her successor is elected and qualified in 2022.
 
It is important to note that the original version of SB 722 passed by the Senate would have moved all municipal elections to March of 2022 and did not make exceptions for individual municipalities.
 
We will continue to monitor and keep you apprised of its progress. Particularly as it relates to partnership on future bond proposals.
 
To learn more about our GA priorities, track legislative bills, or to read our blog posts, you can visit our webpage or follow us on Twitter @RcgaJ, @tierra_rcga, or @raleighchamber.  

What’s happening in the North Carolina General Assembly and around state government? Here’s a recap of activity and how your business may be impacted.
 
There has been lots of activity in recent weeks around encouraging unemployed individuals to return to the workforce. As the American economy begins to rebound from an unprecedented year of pandemic related hardship, we must rebuild the workforce to meet the job demands of an emerging economy.
 
In recent weeks, we saw an executive order from Governor Cooper that reinstated work search requirements for individuals receiving unemployment insurance. Many of those requirements were waived in 2020. Additionally, we saw two proposals debated in the General Assembly that offer additional incentives for returning to work. Please see below:
 
Senate Bill 116: Putting North Carolina Back to Work Act.
The Proposed Committee Substitute to SB 116 would do the following:

• Withdraw from the Federal Pandemic Unemployment Compensation program (FPUC) agreement that provides an additional $300 per week to unemployment insurance claimants through September 6, 2021.
• Allow individual and corporate taxpayers, for the 2020 and 2021 tax years only, an income tax deduction for expenses paid using a loan forgiven under the Paycheck Protection Program.
• Exclude $10,200 of unemployment insurance benefits received in 2020 from State taxable income for taxpayers with an adjusted gross income below $150,000.

 
It is important to note that there is an additional effort being discussed in the House that would provide up to $250 million in childcare supplements for individuals receiving unemployment benefits as they re-enter the workforce.
 
Additionally, the Senate passed a Proposed Committee Substitute for House Bill 128: An Act to Reemploy NC’s Workforce.
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The bill suggests several changes to the unemployment laws of North Carolina, including a provision that directs the Division of Employment Security to seek approval from the U.S. Department of Labor to use the $300 per week supplement authorized under the FPUC program as a signing bonus for unemployed claimants receiving benefits who accept reemployment. The signing bonus would be payable as follows:

• $1,500 bonus for accepting reemployment within 30 days of the bill becoming law.
• $800 bonus for accepting reemployment within 60 days of the bill becoming law.
• No bonus paid for accepting reemployment after September 6, 2021 (current expiration date of federal supplemental unemployment insurance payments).

 
The bill also reinstates numerous job search requirements that mirror Governor Cooper’s executive order, along with establishing disqualifying factors for any remaining employment insurance benefits.

Millions of North Carolinians lost their jobs during the pandemic and relied heavily on unemployment benefits. However, as we are phasing out of the pandemic, local and state governments are working to get North Carolinians employed.
 
To learn more about our GA priorities, track legislative bills, or to read our blog posts, you can visit our webpage or follow us on Twitter @RcgaJ, @tierra_rcga, or @raleighchamber.  
 

What’s happening in the North Carolina General Assembly? Here’s a recap of bill activity and how these bills may impact your business.
 
Last week, House Bill 947: The G.R.E.A.T Broadband Expansion Act was passed by the House with a vote of 109-0. The bill is now in the Senate for further review. Broadband expansion has been on the forefront of North Carolina’s list of priorities for several years and the need for affordable access has exacerbated since the COVID-19 pandemic. Numerous counties in the state do not have complete access to broadband and/or users cannot afford access to broadband. This leaves students without the ability to engage in virtual learning or access virtual resources during the school year. HB 947 proposes to make an additional $400 million allocation to assist counties with access to affordable broadband service upon participating in the Completing Access Broadband Program (CAB).
 
Additionally, here is an update for House Bill 334: JOBS Grants and Tax Relief. Initially, HB 334 allowed individuals and corporate taxpayers an income tax deduction for expenses paid using a loan forgiven under the Paycheck Protection Program. The Senate PCS for HB 334 would replace its contents with the JOBS Grant Program and Tax Changes for 2021. The Senate PCS for House Bill 334 has four parts.
 
JOBS Grant Program

• This grant program appropriates $1 billion of federal funds from the American Rescue Plan Act of 2021 to provide grants to NC businesses that received a COVID-related loan from the state or federal government. The maximum grant amount would be $18,750 and is determined by multiplying the lesser of the award amount or $250,000 of the award by 7.5 percent.

Tax Policy Initiatives

• This initiative reduces individual and corporate income taxes, simplifies the franchise tax, extends the sunset on the mill rehabilitation tax credits for two years, modifies the gross premiums tax and the tax on cigars, imposes a sales tax on peer-to-peer vehicle rentals, changes the calculation of the late tax payment penalty, and exempts vaccines and cemetery property from the local property tax base.

 
IRC Update and Related Changes

• This updates the IRC reference date from May 1, 2020 to April 1, 2021. The change permanently reduces the medical expense deduction threshold from 10 percent of AGI to 7.5 percent. This part enacts a SALT cap election for pass-through entities and provides a separate net operating loss calculation for individual taxpayers.

 
Revenue Laws Study Committee Recommendations

• This makes technical, clarifying, and administrative changes to the tax law as suggested by the Department of Revenue and recommended by the Revenue Laws Study Committee.

 
HB 334 passed the Commerce and Insurance Committee, passed the Appropriations/Base Budget Committee and is currently with the Senate Rules and Operations Committee.
 
To learn more about our GA priorities, track legislative bills, or to read our blog posts, you can visit our webpage or follow us on Twitter @RcgaJ, @tierra_rcga, or @raleighchamber.  
 

What’s happening across North Carolina state government? Here’s a recap of bill activity and how these bills may impact your business.

Last week, Gov. Cooper issued Executive Order 216: Reinstating Work Search Requirements for Unemployment Insurance Benefits. Under Executive Order 216, “all existing claimants of unemployment benefits will be required to fulfill work search requirements beginning June 6, 2021. All existing claimants will be required over the next several weeks to register with a jobseeker account on NCWorks.gov.” About 245,000 North Carolina residents are currently receiving unemployment benefits. Executive Order 216 aims to help transition unemployed claimants back to the workforce.

Additionally, the North Carolina Senate began discussing House Bill 128: An Act to Reemploy NC’s Workforce. House Bill 128 makes several changes to the unemployment laws of North Carolina, including a $300 signing bonus to unemployed claimants receiving benefits who accept reemployment. Additional return to work incentives would be payable as follows:

• A $1,500 bonus for accepting reemployment on or before June 1, 2021
• An $800 bonus for accepting reemployment on or before July 1, 2021

The bill is designed to get unemployed individuals back into the workforce. Millions of North Carolinians lost their jobs during the pandemic and heavily relied on unemployment benefits. However, as we are phasing out of the pandemic, local and state government are working to get North Carolinians employed.
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To learn more about our GA priorities, track legislative bills, or to read our blog posts, you can visit our webpage or follow us on Twitter @RcgaJ, @tierra_rcga, or @raleighchamber.  

What’s happening in the North Carolina General Assembly? Here’s a recap of bill activity and how these bills may impact your business.

Last week, the North Carolina General Assembly reached a biennial legislative milestone commonly referred to as the crossover deadline. Under the “crossover deadline”, any bills unrelated to taxes, spending or elections must pass the legislative chamber of their origin before May 13 or they are no longer eligible for consideration going forward. This deadline allows the General Assembly to prioritize the issues that are most likely to receive consideration by either the House or Senate. The House approved more than 350 bills in the months leading up to crossover, as the Senate approved more than 150 bills. The total number of bills introduced in the General Assembly this year exceeded 1,600.

One piece of notable legislation that will receive debate in the weeks after crossover is House Bill 947: The G.R.E.A.T Broadband Expansion Act. This act establishes the Completing Access to Broadband Program, creates a fixed wireless and satellite broadband grant, and makes changes to growing rural economies with access to technology. Broadband expansion has been on the forefront of North Carolina’s list of priorities for several years and the need for affordable access has exacerbated since the Covid-19 pandemic. There are numerous counties in the state that do not have complete access to broadband and users that cannot afford access to broadband. This has left students without the ability to engage in virtual learning or have access to virtual resources during the school year. HB 947 will make an additional $400 million allocation to assist all NC counties with access to affordable broadband service.

Another notable piece of legislation introduced in the General Assembly last week was House Bill 941: Revenue Laws Tech, Clarifying and Admin Changes. This bill makes technical, clarifying, and administrative changes to the Revenue Laws of NC, as recommended by the NC Department of Revenue. This is important piece of legislation ensures our NC tax laws are encouraging investment while meeting the needs of a growing economy. We will continue to keep you informed on the legislation, and what it means to your business, as it moves through the process.
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To learn more about our GA priorities, track legislative bills, or to read our blog posts, you can visit our webpage or follow us on Twitter @RcgaJ, @tierra_rcga, or @raleighchamber.  

What’s happening in the North Carolina General Assembly? Here’s a recap of bill activity from last week.

Over the past two months, the General Assembly introduced two pieces of legislation to foster innovation and entrepreneurship in North Carolina. These bills are important for the Raleigh Chamber as we consider ways to help connect entrepreneurs to three core elements - funding, talent, and, opportunities.

The first piece of notable legislation reestablishes an important tax credit that was removed by the General Assembly in 2014. House Bill 680: Reenact Qualified Business Venture Credit provides income tax credits for qualified business investments that either are headquartered in a tier one or two county; or are headquartered in an opportunity zone. Additionally, the legislation increases the total amount of tax credits in a calendar year to $10 million (up from $7.5 million). The bill would become effective on Jan. 1 and contains an expiration date of Jan. 1, 2025.

Another notable piece of legislation introduced in the General Assembly is Senate Bill 649: North Carolina Venture Fund. The bill establishes the NC Technology Development Investment Program as a means of providing early-stage, evergreen venture capital for the purpose of fostering and funding businesses in NC and supports entrepreneurs in their efforts to build companies. Additionally, the bill creates the Startup Capital Authority to make qualified investments in businesses throughout the state to provide greater access to startup companies. The legislation would become effective upon appropriation from the General Assembly.

This legislation represents important investments in North Carolina’s entrepreneurial ecosystem.  
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To learn more about our GA priorities, track legislative bills, or to read our blog posts, you can visit our webpage or follow us on Twitter @RcgaJ, @tierra_rcga, or @raleighchamber.  

What’s happening in North Carolina Government? Here’s a recap of important activity that took place last week that impacts your business.

Last week, Governor Cooper delivered his State of the State Address. The Governor kicked off his State of State Address by thanking everyone from frontline workers, educators, and the members of the General Assembly who had a huge role during the pandemic. Gov. Cooper stressed the need to strengthen public schools for all children, eliminate the gaps in high speed internet access, and increased work wages for North Carolinians. He acknowledged the collaborative work of North Carolina businesses that joined forces to assist with PPE, such as small businesses who created masks and medical supplies.

Gov. Cooper also praised Apple for the investment in North Carolina over the next 10 years. Apple plans to invest $1 billion, including $552 million to establish a campus in RTP where it will create 3,000 jobs that would pay an average $187,000. Also a $448 million data center investment in Catawba County.  Lastly, Gov. Cooper discussed the work his administration has done since he became governor and during the pandemic. He noted that under his administration, the state approved $700 million in Build NC Bonds to support road construction and repairs and the HOPE Program (Housing Opportunities and Prevention of Evictions) was created to assist North Carolinians during the pandemic.

Also last week, Governor Cooper signed 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. The bill had previously passed both the House and the Senate with unanimous support. Another notable piece of tax focused legislation passed through the General Assembly last week in Senate Bill 322: 2021 Revenue Law Changes. The bill exempts COVID-19 relief payments from the income determination for the property tax homestead exclusion and makes various other tax changes. The Senate Finance Committee approved the following tax law changes:

1. Reduction in the cap on the federal itemized deductions for state and local taxes (SALT)

paid by individual income taxpayers by providing a state-level workaround.

1. Creation of a separate State net operating loss calculation for individual income taxes.
2. Graduation of penalties for late payment of taxes.
3. Extension of the sunset for qualifies rehabilitation expenditures for eligible railroad stations.

​The bill will now move to the Senate Appropriations Committee for further review.
 
To learn more about our GA priorities, track legislative bills, or to read our blog posts, you can visit our webpage or follow us on Twitter @RcgaJ, @tierra_rcga, or @raleighchamber.