Instructions For Form Nc-480 - Application For Tax Credit For Web Development Zone Project - 2003

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Page 2
General Information
NC-480
10-03
The information below does not cover all provisions of the law. For more information, go to the Department’s website,
, and click on Business\Corporate Income and Franchise Tax\Corporate Income\Guidelines for Article 3A Credits.
A.
Application. To be eligible for a development zone project tax
financial statements audited in accordance with generally
credit for qualifying contributions made in calendar year 2003,
accepted accounting principles and in accordance with
a taxpayer must file this application with the Secretary of
Government Audit Standards developed by the Comptroller
Revenue on or before April 15, 2004. If the taxpayer makes a
General of the United States. If the Department of Commerce
written request for extension of time to file this application, the
determines that a development zone agency has used part or
due date for the application is extended until September 15,
all of a contribution for any purpose other than an improvement
2004. The written request for extension of time must include
project, the Department of Commerce notifies the Secretary of
the taxpayer’s name, social security number or federal
Revenue and the taxpayer who made the contribution of the
identification number, and an authorized signature. Send the
forfeiture and of the amount forfeited.
request for an extension of time to file the application to the
Corporate, Excise, and Insurance Tax Division, P.O. Box 871,
F .
Definitions.
Raleigh, NC 27602-0871.
Community development corporation - A nonprofit corporation
An application for extension of time to file an income tax
that meets all of the following conditions:
return, Form D-410 or CD-419, does not extend the time for
filing Form NC-480.
1.
It is chartered pursuant to Chapter 55A of the North Carolina
General Statutes and is tax-exempt pursuant to IRC section
The tax credit may be taken for the tax year in which the
501(c)(3).
application is timely filed. Example 1: A calendar year
corporation makes a qualifying contribution in November 2003
2.
Its primary mission is to develop and improve low-income
and timely files the application on April 15, 2004. The
communities and neighborhoods through economic and
corporation may claim the tax credit on its 2004 tax return.
related development.
Example 2: A fiscal year corporation with a tax year beginning
September 1, 2003 makes a qualifying contribution in
3.
Its activities and decisions are initiated, managed, and
December 2003 and timely files the application on April 15,
controlled by the constituents of these local communities.
2004. The corporation may claim the tax credit on its 2003 tax
return since April 15, 2004 falls within the corporation’s 2003
4.
Its primary function is to act as deal maker and packager of
tax year.
projects and activities that will increase its constituency’s
opportunities to become owners, managers, and
B.
Limit. No credit is allowed if the taxpayer has one of the
producers of small businesses, to obtain affordable
relationships defined in IRC section 267(b) with the
housing, and to obtain jobs designed to produce positive
development zone agency or if the taxpayer controls, is
cash flow and curb blight in the targeted community.
controlled by, or is under common control with an affiliate of
the development zone agency. No credit is allowed if the
Community development purpose - A purpose for which a
taxpayer receives anything of value in exchange for the
city is authorized to expend funds under North Carolina
contribution. The credit is equal to 25% of the value of the
General Statutes 160A-456, 160A-457, or 160A-457.2.
contribution but may not exceed fifty percent (50%) of the tax
against which it is claimed for the taxable year, reduced by the
Control - A person controls an entity if the person owns, directly
sum of all other credits allowed against that tax, except tax
or indirectly, more than ten percent (10%) of the voting
payments made by or on behalf of the taxpayer. Any unused
securities of that entity.
credit may be carried forward for the next five succeeding years.
Any portion of the credit disallowed by the Department due to
Development Zone Agency - Any of the following agencies
the annual ceiling on the credit (see Section below) may not
that the Department of Commerce certifies will undertake an
be carried forward.
improvement project in a development zone:
C.
Ceiling. The total amount of all tax credits allowed for
1.
A community-based development organization qualified
development zone contributions in a calendar year may not
under 24 C.F.R. section 570.204 to receive community
exceed $4,000,000. To apply this ceiling, the Secretary of
development block grant funds.
Revenue calculates the total credits from the applications filed.
If the total for the calendar year exceeds $4,000,000, the
2.
An agency designated as a community action agency pursuant
Secretary allocates the $4,000,000 among the applicants for
to section 210 of the Economic Opportunity Act of 1964.
the credit by reducing each credit proportionately. The Secretary
then sends a letter to each applicant stating the amount of
3.
A community development corporation.
credit the applicant may claim. The Secretary of Revenue sends
the letter on or before December 31 of the year following the
4.
A community development financial institution certified by
calendar year in which the investment was made.
the United States Department of Treasury under the
Community Development Banking and Financial
D.
Certification. Development zone agencies and improvement
Institutions Act of 1994.
projects must be certified with the Department of Commerce.
Information on the qualifying conditions under which the
5.
A community housing development organization qualified
Department of Commerce certifies can be obtained from the
under the HOME investment Partnership Act.
Department of Commerce.
6.
A local housing authority created under Article 1 of Chapter
E.
Forfeiture. A taxpayer forfeits a credit allowed under this section
157 of the North Carolina General Statutes.
to the extent the development zone agency uses the taxpayer’s
contribution for any purpose other than an improvement project.
Improvement project - A project to construct or improve real
Each development zone agency certified by the Department of
property for community development purposes or to acquire
Commerce must file with the Department of Commerce annual
real property and convert it for community development purposes.

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