Credit For Qualified Business Investments
A tax credit is allowed on your North Carolina income tax return
for qualifying investments made in the equity securities or subordinated
debt of a qualified business. The credit will either increase your
refund or decrease the tax you owe.
The credit is allowed in the tax year beginning during the calendar year following
the calendar year in which you made the investment. The credit cannot be claimed
for the tax year in which the investment was made. To receive the credit, you
must file Form D-499, Application For Tax Credit For Qualified Business Investments
with the Secretary of Revenue. The application should be filed on or before April 15
and no later than October 15 of the year following the calendar year in which the investment
was made. Include with the application copies of canceled checks or other documents which
verify your investment, copies of stock certificates or subordinated debt instruments issued
by the qualified business, and the Certificate of Qualified Status for each
organization for which credit is claimed. Do not attach the application to your
North Carolina income tax return. The application should be mailed separately
to the address shown at the bottom of the application. An application filed after October 15
will not be accepted.
The credit is 25 percent of the amount you invested or $50,000, whichever
is less. The total credits allowable to all taxpayers for each year may not
exceed $7,500,000. If the Revenue Department receives applications for which
the total credits exceeds that amount, the $7,500,000 in credits will be allocated
in proportion to the size of the credit claimed by each taxpayer. Your basis
in the equity securities or subordinated debt acquired because of your investment
must be reduced by the amount of the credit.
Claim the credit on line 24 of Form D-400TC. You may carry forward any unused
credit for the next five years. Be sure to include your Form D-400TC (tax credit
schedule) when filing your return.
Last modified on:
01/05/12 03:39:13 PM.