Since I updated you yesterday, House Bill 1050: Omnibus Tax Law Changes received final bipartisan approval in the General Assembly and was signed into law by Governor McCrory.

This legislation includes priority issues for NC Chamber members that create tremendous simplification for employers. HB1050 replaces the net economic loss (NEL) with a State net loss (NOL) deduction that is more comparable to the federal net operating loss (NOL) calculation. Additionally, the bill repeals the existing authority for cities to levy a privilege license tax on July 1, 2015. For the 2014-15 fiscal year, the measure allows cities only to tax businesses physically located in the city. Currently, cities can tax businesses that operate in the city but don’t have a physical location there. Both of these provisions create more certainty and simplify the administrative burden for employers.

In order to maintain and strengthen North Carolina’s competitive position, our state’s tax policy must continue evolving to increase competitiveness, simplicity, efficiency, certainty and equity. The North Carolina Chamber commends Governor McCrory and the legislature for their leadership in advancing continued tax policy updates that increase your ability to create and retain jobs.

Gary J. Salamido

Vice President, Government Affairs
North Carolina Chamber