GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 257

Short Title:  RR Tax Credit for Ports Use.	(Public)

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Sponsors: Representatives McComas; and Watson.

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Referred to:  Commerce, if favorable, Finance.

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February 17, 1997

A BILL TO BE ENTITLED
AN ACT TO PROVIDE A TAX CREDIT FOR RAILROADS PROVIDING INCREASED SERVICE TO THE NORTH CAROLINA STATE PORTS.
The General Assembly of North Carolina enacts:
Section 1. Division I of Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105-130.43.  Credit to railroads for increased service to North Carolina State Ports.
A taxpayer operating a railroad that provides rail service to or from the State-owned port terminal at Wilmington or Morehead City is allowed a credit against the tax imposed by this Division.  The amount of the credit is the tax imposed upon the income attributable to the increase in cargo units moved by the taxpayer to and from a port terminal in the current taxable year over the cargo units moved by the taxpayer during the preceding taxable year. To obtain the credit, taxpayers shall provide to the Secretary a statement from the State Ports Authority certifying the increase in cargo units for which a credit is claimed and any other information required by the Secretary."
Section 2.  Division II of Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105-151.27.  Credit to railroads for increased service to North Carolina State Ports.
A taxpayer operating a railroad that provides rail service to or from the State-owned port terminal at Wilmington or Morehead City is allowed a credit against the tax imposed by this Division.  The amount of the credit is the tax imposed upon the income attributable to the increase in cargo units moved by the taxpayer to and from a port terminal in the current taxable year over the cargo units moved by the taxpayer during the preceding taxable year. To obtain the credit, taxpayers shall provide to the Secretary a statement from the State Ports Authority certifying the increase in cargo units for which a credit is claimed and any other information required by the Secretary."
Section 3.  Part 10 of Article 10 of Chapter 143B of the General Statutes is amended by adding a new section to read:
"§ 143B-467.1.  Reports on impact of tax credits.
The North Carolina State Ports Authority shall report annually to the General Assembly regarding the impact of the income tax credit provided by G.S. 105-130.41 and G.S. 105-151.22 on shipping and economic growth.  Each report shall show the overall annual increase in shipping at each State port for the most recent year for which data is available and for each of the previous 10 years.  Each report shall estimate the number of jobs created at each port and in businesses related to port activity at each port since January 1, 1992, as compared to the number of similar jobs created during the 10 years preceding January 1, 1992.  Each report shall state the net economic impact on the State as a result of the allowance of the tax credit.  Each report shall include the number of persons using the tax credit who have stopped, or are likely to stop, using a North Carolina port when the credit expires and to then use a port in another state.
The North Carolina State Ports Authority shall also report annually to the North Carolina General Assembly regarding the impact of the income tax credit provided by G.S. 105-130.43 and G.S. 105-151.27 on rail service to the State ports and on economic growth in general.  Each report shall show the overall increase in rail service to both the Wilmington and Morehead City terminals during the most recent year for which data is available and for each of the previous 10 years. Each report shall state the net economic impact on the State as a result of the allowance of tax credits under this act.
The Ports Authority shall file these reports on May 1 of each year by submitting copies to the Speaker of the House of Representatives and the President Pro Tempore of the Senate. The Ports Authority is encouraged to combine the reports in a single document for the sake of economy. The Department of Revenue and the Department of Commerce shall cooperate with the Ports Authority in providing the information required in the annual reports."
Section 4. Section 3 of this act is effective when it becomes law.  The remainder of this act is effective for taxable years beginning on or after January 1, 1997.