Governor Pat McCrory, North Carolina, signed House Bill 998 (aka Tax Simplification and Reduction Act) into law Tuesday, July 23, 2013. Among other outcomes, the state’s Research and Development Credit, formerly known as the Technology Development Credit, has been extended through 2015. Under the Research and Development Credit, North Carolina businesses with qualified research expenses are allowed a credit of up to 35% of the amount of those expenses. The exact rate depends on the circumstances of the taxpayer, the location of the research activity, and the amount of the expenses. This credit is the only remaining research credit offered by the state, as two of the original three credits previously offered by the state were repealed in 2006, when the state’s tax incentives were revamped. The credit cannot exceed 50% of the amount of tax against which it is claimed, reduced by the sum of all other tax credits allowed against that tax. Any unused portion may be carried forward for the succeeding fifteen taxable years.

TECHNICAL INFORMATION CONTACTS:

Allea Newbold, Principal – Ryan
Stephanie Shell-Condon, Director – Ryan

Allea Newbold

Allea Newbold, CPA, negotiates credits and incentives for new and expanding companies nationwide, helping them maximize return on investment. Her tenacity and creativity have built a record of success in property tax abatement, sales tax refunds, cash grants, and Tax Increment Financing (TIF). While retail space leads her list of specialties, clients of all sizes and industries seek out Ms. Newbold’s over 16 years of professional expertise.