A BILL TO BE ENTITLED
AN ACT to create an income tax credit for hiring UNEMPLOYMENT recipients.
The General Assembly of North Carolina enacts:
SECTION 1.  Part 1 of Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑130.49.  Credit for hiring unemployment recipients.
(a)	Credit. – A taxpayer that hires an individual receiving unemployment benefits as defined in Article 2 of Chapter 96 of the General Statues at the time of hire to fill a full‑time position in this State and keeps that person as an employee for at least nine months is allowed a credit for hiring that person. The amount of the credit is equal to the wages paid to the disadvantaged worker during the taxable year up to a maximum of two thousand dollars ($2,000) per disadvantaged worker hired and kept by the taxpayer per year. The taxpayer shall claim the credit with respect to a disadvantaged worker in the year in which the nine‑month period ends and the following year.
(b)	Cap. – The credit allowed by this section may not exceed fifty percent (50%) of the amount of the tax imposed by this Part for the taxable year reduced by the sum of all credits allowable, except payments of tax made by or on behalf of the taxpayer. This limitation applies to the cumulative amount of the credit, including carryforwards, claimed by the taxpayer under this section for the taxable year. Any unused portion of the credit may be carried forward for the succeeding five years.
(c)	Sunset. – This section is repealed effective for taxable years beginning on or after January 1, 2014."
SECTION 2.  Part 2 of Article 4 of the General Statutes is amended by adding a new section to read:
"§ 105‑151.33.  Credit for unemployment recipients.
(a)	Credit. – A taxpayer that hires an individual receiving unemployment benefits as defined in Article 2 of Chapter 96 of the General Statues at the time of hire to fill a full‑time position in this State and keeps that person as an employee for at least nine months is allowed a credit for hiring that person. The amount of the credit is equal to the wages paid to the disadvantaged worker during the taxable year up to a maximum of two thousand dollars ($2,000) per disadvantaged worker hired and kept by the taxpayer per year. The taxpayer shall claim the credit with respect to a disadvantaged worker in the year in which the nine‑month period ends and the following year.
(b)	Cap. – The credit allowed by this section may not exceed fifty percent (50%) of the amount of the tax imposed by this Part for the taxable year reduced by the sum of all credits allowable, except payments of tax made by or on behalf of the taxpayer. This limitation applies to the cumulative amount of the credit, including carryforwards, claimed by the taxpayer under this section for the taxable year. Any unused portion of the credit may be carried forward for the succeeding five years.
(c)	Sunset. – This section is repealed effective for taxable years beginning on or after January 1, 2014."
SECTION 3.  This act is effective for taxable years beginning on or after January 1, 2009.