A BILL TO BE ENTITLED
AN ACT to amend tax laws related to interstate air couriers.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑164.3(13) and (15) read as rewritten:
"§ 105‑164.3.  Definitions.
The following definitions apply in this Article:
…
(13)	Hub. – Either of the following:
a.	An interstate air courier's hub is 			the interstate air courier's principal airport within the State for sorting and distributing letters and packages and from which the interstate air courier has, or expects to have upon completion of construction, no less than 150 departures a month under normal operating conditions.
b.	An interstate passenger air carrier's hub is the airport in this State that meets both of the following conditions:
1.	The air carrier has allocated to the airport under G.S. 105‑338 more than sixty percent (60%) of its aircraft value apportioned to this State.
2.	The majority of the air carrier's passengers boarding at the airport are connecting from other airports rather than originating at that airport.
…
(15)	Interstate air courier. – A person whose primary business is the furnishing of air delivery of individually addressed letters and packages for compensation, in interstate commerce, except by the United States Postal Service."
SECTION 2.  G.S. 105‑129.2A is amended by adding a new subsection to read:
"(a1)	Sunset for Interstate Air Couriers. – Notwithstanding subsection (a) of this section, in the case of an interstate air courier that enters into a real estate lease on or before January 1, 2006, with an airport authority that provides for the lease of at least 100 acres of real property with a lease term in excess of 15 years, this Article is repealed effective for business activities that occur on or after January 1, 2010."
SECTION 3.  G.S. 105‑129.4(b) reads as rewritten:
"(b)	Wage Standard. – A taxpayer is eligible for the credit for creating jobs or the credit for worker training if, for the calendar year the jobs are created or the worker training is provided, the average wage of the jobs for which the credit is claimed meets the wage standard and the average wage of all jobs at the location with respect to which the credit is claimed meets the wage standard. No credit is allowed for jobs not included in the wage calculation. A taxpayer is eligible for the credit for investing in machinery and equipment, the credit for research and development, the credit for investing in real property for a central office or aircraft facility, or the credit for substantial investment in other property if, for the calendar year the taxpayer engages in the activity that qualifies for the credit, the average wage of all jobs at the location with respect to which the credit is claimed meets the wage standard. In making the wage calculation, the taxpayer must include any positions that were filled for at least 1,600 hours during the calendar year the taxpayer engages in the activity that qualifies for the credit even if those positions are not filled at the time the taxpayer claims the credit. However, in the case of an interstate air courier, the taxpayer may exclude part-time jobs in making the wage calculation.
Jobs meet the wage standard if they pay an average weekly wage that is at least equal to the applicable percentage times the applicable average weekly wage for the county in which the jobs will be located, as computed by the Secretary of Commerce from data compiled by the Employment Security Commission for the most recent period for which data are available. The applicable percentage for jobs located in an enterprise tier one area is one hundred percent (100%). The applicable percentage for all other jobs is one hundred ten percent (110%). The applicable average weekly wage is the lowest of the following: (i) the average wage for all insured private employers in the county, (ii) the average wage for all insured private employers in the State, and (iii) the average wage for all insured private employers in the county multiplied by the county income/wage adjustment factor. The county income/wage adjustment factor is the county income/wage ratio divided by the State income/wage ratio. The county income/wage ratio is average per capita income in the county divided by the annualized average wage for all insured private employers in the county. The State income/wage ratio is the average per capita income in the State divided by the annualized average wage for all insured private employers in the State. The Department of Commerce must annually publish the wage standard for each county."
SECTION 4.  G.S. 105‑129.4 is amended by adding a new subsection to read:
"(h)	Special Time Periods for Interstate Air Couriers. – In the case of an interstate air courier that has or is constructing a hub in this State, the terms 'two years' and 'two‑year' are replaced by the terms 'five years' and 'five‑year' respectively each place they occur in this Article."
SECTION 5.  G.S. 105‑129.9(b) reads as rewritten:
"(b)	Eligible Investment Amount. – The eligible investment amount is the lesser of (i) the cost of the eligible machinery and equipment and (ii) the amount by which the cost of all of the taxpayer's eligible machinery and equipment that are in service in this State on the last day of the taxable year exceeds the cost of all of the taxpayer's eligible machinery and equipment that were in service in this State on the last day of the base year. The base year is that year, of the three immediately preceding taxable years, in which the taxpayer had the most eligible machinery and equipment in service in this State. Notwithstanding the other provisions of this subsection, in the case of an interstate air courier that has or is constructing a hub in this State, the eligible investment amount is the cost of the machinery and equipment at the hub that was not used and transferred by the interstate air courier from another location in this State."
SECTION 6.  Section 22 of S.L. 1998‑55, as amended by Section 16(a) of S.L. 2001‑476, reads as rewritten:
"Section 22. Section 10 of this act is effective for taxes imposed for taxable years beginning on or after July 1, 2001. Section 11 of this act becomes effective January 1, 1999, and expires January 1, 2010. The remainder of Part III of this act becomes effective January 1, 2001, and applies to sales made on or after that date."
SECTION 7.  It is the intent of the General Assembly that the provisions of this act not be expanded.  If a court of competent jurisdiction holds any provision of this act invalid, the section containing that provision is repealed.  The repeal of a section of this act under this section does not affect other provisions of this act that may be given affect without the invalid provision.
SECTION 8.  Section 1 of this act becomes effective July 1, 2002, and applies to sales made on or after that date.  The remainder of this act is effective for taxable years that begin on or after January 1, 2002.