New and Revised Reforms Passed for Corporate Taxes
Each year there are several new and different tax savings opportunities because tax credits retire, expire or new credits are implemented. Because of some major North Carolina tax reforms that were passed in 2013, the big savings in corporate taxes can be a distinct benefit for businesses that locate in Currituck County. Here are a few big changes in North Carolina that your real estate clients need to know.
The corporate income tax will be lowering incrementally over the next 3 years. In 2014, the rate for corporate taxes will be 6%, lowering by 1% each year until 2017. 2015’s rate will be 5%, 2016’s rate is projected at 4%. Please note that the 2016 and 2017 rates will be dependent on a certain revenue target being achieved.
New rates for the unemployment insurance taxes were enactedand signed into law on February 19, 2013. There are a few restrictions to this tax. The new employer rate is 1.2% until certain goals in the unemployment insurance trust fund are met.
To make the business climate even more enticing, sales and utility usage taxes have also been revised.
Individual incomes taxes have also been lowered, freeing up more discretionary income that can be spent on goods and services.
North Carolina also has many pro-business policies such as Job Development Investment grants, which refunds employees withholding taxes and Community Development Block grants for infrastructure costs. Compare Business Tax Rates by State to see how these benefits add up for in favor of your business in North Carolina.
Even More Credits Apply to Corporate Taxes
Over and beyond the usual corporate tax breaks, there are even more incentives which make Currituck County, North Carolina more beneficial for your corporate real estate clients.
Some of these are:
Technology Development (Article 3F) tax credits that are related to research expenses.
Interactive Digital Media tax credits for those who develop interactive digital media within North Carolina.
Renewable Energy tax credits for almost all renewable energy equipment and design, construction costs and installation costs which are placed into service in NC during the taxable year.
North Carolina Port tax credits that are put toward income taxes owed by those using the North Carolina Ports facilities at Morehead City and Wilmington.
Article 3J tax credits which apply to job creation, business property and more. This can help further offset corporate tax bills.
Film production tax credits that allow companies that film in the region to apply for special tax credits.
Like all business owners, your commercial real estate clients are interested in the bottom line. So, when they are searching for new real estate to expand or start a business, corporate taxes are a key decision factor. With one of the lowest local tax burdens in North Carolina and much lower tax rates than Virginia and the Hampton Roads area, Currituck is a perfect choice.