Lower Corporate Taxes Are Set For Many States in 2015

Lower Corporate Taxes Are Set For Many States in 2015

Beginning in 2015, North Carolina’s lower corporate taxes will have a 5 percent difference from the current rate of 6 percent as a result of a tax overhaul passed in 2013, according to Triangle Business Journal.

The bill was scheduled to take effect over the course of three years.

The news source continued, noting that if net general tax collections in the year ending June 30 exceed $20.2 billion, the rate could potentially come down even further, to 4 percent. If certain targets are met in the following year, they could fall to 3 percent. The state also cut the rate on individual income to 5.75 percent from the already lowered rate of 5.8 percent.

North Carolina broadened the sales tax base in order to account for lost revenues, most notably on entertainment, according to the Fay Observer. These changes went into effect on Jan. 1, 2014. Meanwhile, Republican lawmakers also took away breaks to cab drivers and Hollywood studios shooting in the state.

In the past, taxi drivers were able to claim a quarterly refund on the gasoline excise tax – this will no longer be available, the news source reported. A 25 percent tax credit for TV and film production in the state is being allowed to expire in favor of a grant program being enacted in 2015. This 25 percent tax credit allowed producers to forego $61 million in state taxes in 2013, but such credits are also a major factor in determining where studios will cite theirs.

Do you as a business owner have any thoughts or insights in terms of a legal perspective regarding the lowering of corporate taxes? If so, please feel free to contact one the Scarinci Hollenbeck attorneys.