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Bill to Reduce and Simplify Corporate Tax

| Tax Policy & Competitiveness

In the NC Chamber’s 2015 CEO Poll, 25 percent of business leaders said that “reforming or reducing taxes” is “the one thing the state government can do to have a positive and significant impact on your business” – the top response for that question. To that end, the NC Chamber is focused on building upon the 2013 tax reform to ensure companies that already employ millions of North Carolinians can look to expand and grow, spurring further business investments and job creation.

Yesterday, the Senate introduced legislation (SB338) that further bolsters North Carolina’s competitive position by simplifying issues within the tax code and lowering the corporate tax rate to three percent by 2017. This ensures the full implementation of the 2013 tax reform.

One main provision is moving to single sales factor by 2016, which will apportion corporate business income on the sole basis of the portion of the corporation’s total sales that occur in the state. This will enable North Carolina to compete in this area, as states like Virginia, South Carolina and Georgia have adopted or are phasing in single sales factor apportionment. Additionally, the legislation strengthens the state’s job recruitment tools to attract sustainable, long-term projects with significant economic impacts for North Carolina and its citizens. While there are differences between Senate Bill 338 and House Bill 117 (NC Competes) around the Jobs Development Investment Grant (JDIG), we applaud both chambers for their focus on attracting and growing jobs. Both bills take good steps to level the playing field for North Carolina to compete with surrounding states.

Let’s take this opportunity to build on our momentum. We look forward to working with the House, Senate and Governor to find common ground and advance initiatives that continue to position North Carolina’s business climate competitively to draw investment and keep, attract and grow good jobs for the future.

Gary J. Salamido
Vice President, Government Affairs
North Carolina Chamber