GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2009

H                                                                                                                                                   D

HOUSE DRH80585-MC-312  (05/13)

Short Title:        Incentives to Foster Eco-Industrial Park.		(Public)
Sponsors:	Representative Owens.
Referred to:

A BILL TO BE ENTITLED

AN ACT to provide incentives for businesses that locate in an eco-industrial park.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 143B-437.08 is amended by adding a new subsection to read:

"(j) Exception for Eco-Industrial Park. - An Eco-Industrial Park has a development tier one designation. An Eco-Industrial Park is an industrial park that the Secretary of Commerce has certified meets the following requirements:

(1) It has at least 100 developable acres.

(2) It is located in a county that is not required under G.S. 143-215.107A to perform motor vehicles emissions inspections.

(3) Each building located in the industrial park is constructed in accordance with energy-efficiency and water-use standards established in G.S. 143-135.37 for construction of a major facility.

(4) Each business located in the park is in a clean-industry sector according to the Toxic Release Inventory by the United States Environmental Protection Agency."

SECTION 2.  G.S. 143B-437.4 reads as rewritten:

"§ 143B-437.4.  NC Green Business Fund established as a special revenue fund.and grant program.

(a)        Establishment. -Fund. - The NC Green Business Fund is established as a special revenue fund in the Department of Commerce, and the Department shall be responsible for administering the Fund.

(b)        Purposes. - Moneys in the NC Green Business Fund shall be allocated pursuant to this subsection. The Department of Commerce shall make grants from the Fund to private businesses with less than 100 employees, nonprofit organizations, local governments, and State agencies to encourage the expansion of small to medium size businesses with less than 100 employees to help grow a green economy in the State. Moneys in the NC Green Business Fund shall be used for projects that will focus on the following three priority areas:areas listed in this subsection. In selecting between projects that are within a priority area, a project that is located in an Eco-Industrial Park certified under G.S. 143B-437.08 has priority over a project that is not located in a certified Eco-Industrial Park. The priority areas are:

(1)        To encourage the development of the biofuels industry in the State. The Department of Commerce may make grants available to maximize development, production, distribution, retail infrastructure, and consumer purchase of biofuels in North Carolina, including grants to enhance biofuels workforce development.

(2)        To encourage the development of the green building industry in the State. The Department of Commerce may make grants available to assist in the development and growth of a market for environmentally conscious and energy efficient green building processes. Grants may support the installation, certification, or distribution of green building materials; energy audits; and marketing and sales of green building technology in North Carolina, including grants to enhance workforce development for green building processes.

(3)        To attract and leverage private-sector investments and entrepreneurial growth in environmentally conscious clean technology and renewable energy products and businesses, including grants to enhance workforce development in such businesses.

(c) Cap and Matching Funds. - The Department of Commerce may set a cap on a grant from the NC Green Business Fund and may require a private business to provide matching funds for a grant from the Fund. A grant to a project located in an Eco-Industrial Park certified under G.S. 143B-437.08 is not subject to a cap or a requirement to provide matching funds."

SECTION 3.  G.S. 143B-437.52(b) reads as rewritten:

"(b)      Cap. -Cap and Priority. - The maximum number of grants the Committee may award in each calendar year is 25. In selecting between applicants, a project that is located in an Eco-Industrial Park certified under G.S. 143B-437.08 has priority over a project that is not located in a certified Eco-Industrial Park."

SECTION 4.  G.S. 105-129.16A(c)(1) reads as rewritten:

"(c)       Ceilings. - The credit allowed by this section may not exceed the applicable ceilings provided in this subsection.

(1)        Nonresidential Property. - A ceiling of two million five hundred thousand dollars ($2,500,000) per installation applies to renewable energy property placed that is in service outside an Eco-Industrial Park certified under G.S. 143B-437.08 and is for any purpose other than residential. A ceiling of five million dollars ($5,000,000) per installation applies to renewable energy property that is placed in service in a certified Eco-Industrial Park and is for any purpose other than residential."

SECTION 5.  G.S. 105-129.16D(d) reads as rewritten:

"(d)      Sunset. - This section is repealed effective for facilities that are located outside an Eco-Industrial Park certified under G.S. 143B-437.08 and are placed in service on or after January 1, 2011. This section is repealed effective for facilities that are located in a certified Eco-Industrial Park and are placed in service on or after January 1, 2012."

SECTION 6.  G.S. 105-129.55 reads as rewritten:

"§ 105-129.55.  Credit for North Carolina research and development.

(a)        Qualified North Carolina Research Expenses. - A taxpayer that has qualified North Carolina research expenses for the taxable year is allowed a credit equal to a percentage of the expenses, determined as provided in this subsection.section. Only one credit is allowed under this subsection section with respect to the same expenses. If more than one subdivision of this subsection section applies to the same expenses, then the credit is equal to the higher percentage, not both percentages combined. If part of the taxpayer's qualified North Carolina research expenses qualifies under more than one subdivision (2) of this subsection and the remainder qualifies under subdivision (3) of this subsection, section, the applicable percentages apply separately to each part of the expenses.

(1)        Small business. - If the taxpayer was a small business as of the last day of the taxable year, the applicable percentage is three and one-quarter percent (3.25%).

(2)        Low-tier research. - For expenses with respect to research performed in a development tier one area, the applicable percentage is three and one-quarter percent (3.25%).

(2a) University research. - For North Carolina university research expenses, the applicable percentage is twenty percent (20%).

(2b) Eco-Industrial Park. - For expenses with respect to research performed in an Eco-Industrial Park certified under G.S. 143B-437.08, the applicable percentage is thirty-five percent (35%).

(3)        Other research. - For expenses not covered under another subdivision (1) or (2) of this subsection,section, the percentages provided in the table below apply to the taxpayer's qualified North Carolina research expenses during the taxable year at the following levels:

Expenses Over                 Up To                              Rate

-0-                                  $50 million                     1.25%

$50 million                           $200 million                     2.25%

$200 million                             -                                3.25%

(b) North Carolina University Research Expenses. - A taxpayer that has North Carolina university research expenses for the taxable year is allowed a credit equal to twenty percent (20%) of the expenses."

SECTION 7.  Sections 4 and 6 of this act are effective for taxable years beginning on or after January 1, 2011.  The remainder of this act is effective when it becomes law.  Sections 2 and 3 of this act apply to grant applications submitted on or after July 1, 2011.