§ 105-130.45. (Repealed effective January 1, 2018) Credit for manufacturing cigarettes for exportation.
(a) Definitions. - The following definitions apply in this section:
(1) Base year exportation volume. - The number of cigarettes manufactured and exported by a corporation during the calendar year 2003.
(2) Exportation. - The shipment of cigarettes manufactured in the United States to any of the following sufficient to relieve the cigarettes in the shipment of the federal excise tax on cigarettes:
a. A foreign country.
b. A possession of the United States.
c. A commonwealth of the United States that is not a state.
(3) Successor in business. - A corporation that through amalgamation, merger, acquisition, consolidation, or other legal succession becomes invested with the rights and assumes the burdens of the predecessor corporation and continues the cigarette exportation business.
(b) Credit. - A corporation engaged in the business of manufacturing cigarettes for exportation to a foreign country and that waterborne exports cigarettes and other tobacco products through the North Carolina State Ports during the taxable year is allowed a credit against the taxes levied by this Part. The amount of credit allowed under this section is determined by comparing the exportation volume of the corporation in the year for which the credit is claimed with the corporation's base year exportation volume, rounded to the nearest whole percentage. In the case of a successor in business, the amount of credit allowed under this section is determined by comparing the exportation volume of the corporation in the year for which the credit is claimed with all of the corporation's predecessor corporations' combined base year exportation volume, rounded to the nearest whole percentage. The amount of credit allowed may not exceed six million dollars ($6,000,000) and is computed as follows:
Current Year's Exportation Amount of Credit
Volume Compared to its per Thousand
Base Year's Exportation Volume Cigarettes Exported
120% or more 40¢
119% - 100% 35¢
99% - 80% 30¢
79% - 60% 25¢
59% - 50% 20¢
Less than 50% None
(c) Cap. - The credit allowed under this section may not exceed the lesser of six million dollars ($6,000,000) or fifty percent (50%) of the amount of tax imposed by this Part for the taxable year reduced by the sum of all other credits allowable, except tax payments made by or on behalf of the taxpayer. This limitation applies to the cumulative amount of the credit allowed in any tax year, including carryforwards claimed by the taxpayer under this section for previous tax years. Any unused portion of a credit allowed in this section may be carried forward for the next succeeding ten years.
(d) Documentation of Credit. - A corporation that claims the credit under this section must include the following with its tax return:
(1) A statement of the base year exportation volume.
(2) A statement of the exportation volume on which the credit is based.
(3) A list of the corporation's export volumes shown on its monthly reports to the Alcohol and Tobacco Tax and Trade Bureau of the United States Treasury for the months in the tax year for which the credit is claimed.
(e) No Double Credit. - A taxpayer may not claim this credit and the credit allowed under G.S. 105-130.46 for the same activity.
(f) Report. - The Department must include in the economic incentives report required by G.S. 105-256 the following information itemized by taxpayer:
(1) The number of taxpayers taking a credit allowed in this section.
(2) The total amount of exports with respect to which credits were taken.
(3) The total cost to the General Fund of the credits taken. (1999-333, s. 4; 2003-435, 2nd Ex. Sess., ss. 5.1, 5.2, 5.3; 2005-429, s. 2.10; 2010-166, s. 1.12.)