June 11, 2010
THIS WEEK AT THE CAPITAL
This weekly newsletter is intended to keep North Carolina Chamber members informed about legislative activity and hot topics in the capital city during the legislative session. The Capital News Update is a weekly collection of news briefs covering ‘hot topics’ in the state legislature and public policy arena. The weekly news briefs do not necessarily reflect the North Carolina Chamber’s priorities or legislative agenda, but will feature news about the state Chamber’s advocacy efforts when the topic is timely or a major news event in the capital city.
Capital News Update
Update: Budget Conferees Begin Negotiations
Following the NC House giving final approval to its budget proposal last week, the Senate officially rejected the House version this week, which begins the process of final negotiations in a joint conference committee. The joint conference committee will work out the differences between the House and Senate versions of state budget proposals and prepare a final package to present to the Governor for her signature.
Click here for a list of Senators and Representatives serving on the budget conference committee.
The House budget, like the Senate’s and Governor’s proposals, includes a number of provisions aimed at providing tax relief for small businesses to help create jobs. The House primarily focused on tax credits to provide small business assistance and tax relief, as did the Governor. The core of the Senate’s small business assistance package, on the other hand, is a 6.9 percent cap on the top marginal personal income tax, which is currently 7.75 percent. Click here to review information on all three budget proposals.
If legislative activity occurs as planned, budget negotiators will have a final budget package presented to the Governor by July 1st, which marks the start of the state’s new fiscal year.
Update: Senate Leadership Indicates ‘Mobility Fund’ Will Be Included in Final Budget
As previously reported, the budget proposal passed by the NC House included a version of Governor Perdue’s proposed "Mobility Fund," which is aimed at providing congestion relief in North Carolina. The state budget proposal passed by the Senate did not. Since the Mobility Fund was not included in the Senate budget and is included in the House budget, it is one of the key provisions for negotiation between conferees as a budget package is finalized.
Yesterday, (June 10th) Senate President Pro Tem Marc Basnight indicated that the final budget proposal from conference committee negotiations would contain some version of the Mobility Fund. Sen. Basnight stated: "It wasn't in the Senate's proposed budget, but Senate leaders probably will agree on some version of Gov. Bev Perdue's N.C. Mobility Fund when they work out a budget deal with the House." Senator Basnight did state however that negotiations would still be ongoing on how the proposal would be funded, indicating a possibility of a change from the House proposal.
Click here to review the major provisions included in the House’s and Governor’s proposed NC Mobility Fund(s).
The North Carolina Chamber will continue to work with both the House and Senate to find solutions that address congestion relief and other significant infrastructure challenges.
Chamber-backed Bill Providing Tax Credits & Regulatory Reform Passes House Committee
House Bill 1973, Keeping North Carolina Competitive Act, backed by the North Carolina Chamber, crossed a pivotal hurdle this week when it passed the NC House Commerce Committee. HB 1973 is a multi-faceted proposal, including tax credits and economic development incentives for a wide array of industries. Two provisions in particular that the North Carolina Chamber believes are crucial to economic recovery and growth are:
* Tax Credits for Growing Businesses
Tax credits established in 2006 by the NC General Assembly, commonly known as Article 3J Credits, would be extended through January 1, 2014. Under current law, these credits are set to sunset on January 1, 2011. Article 3J offers credits to existing North Carolina businesses for 1) Creating Jobs; 2) Investing in Business Property; 3) Investments in Real Property.
The North Carolina Chamber supports the extension of these tax credits essential for economic development in our state. Incentives for investment yield benefits that will help fuel economic recovery and growth and also serve to make North Carolina more competitive when it comes to attracting businesses and jobs.
* Clarifies Regulations to Help Grow Jobs & Economy while Protecting Environment
Under current law, a taxpayer qualifies for certain economic incentives only if the taxpayer certifies that it has no significant violations of any DENR-implemented programs. While the Article 3J statute contains a definition for what constitutes a "significant" violation, some confusion has arisen as to whether violations should be considered "significant" or "non-significant".
House Bill 1973 would ensure that minor violations do not inadvertently disqualify a taxpayer that would otherwise be eligible for tax incentives. The North Carolina Chamber believes that it is very important to provide certainty around incentives that companies are awarded for investments and job creation if we are going to attract and keep jobs in our state.
Click here to review all of the provisions included in HB1973.
Click here to review a summary of the key tax credits and incentives included in HB1973.
Now that HB 1973 has passed the House Commerce committee, it goes to the House Finance Committee for consideration. It is currently scheduled to be heard in House Finance on Wednesday, June 16th. If it passes House Finance, the bill will then go to the full House for a floor vote.
NC Chamber to Co-Host NC Manufacturers’ Day at the General Assembly!
The NC Chamber and the Manufacturers & Chemical Industry Council of North Carolina (MCIC) will host an inaugural NC MANUFACTURERS' DAY on June 15th, beginning at 9:30 a.m. at the NC General Assembly in downtown Raleigh (schedule provided below). NC Chamber member McGladrey will sponsor the event and lunch.
Join us on NC MANUFACTURERS' DAY to help state leaders and lawmakers understand today’s manufacturing. To sign up, please contact Debbie Mueller in the NC Chamber Governmental Affairs department at 919-836-1404 or dmueller@ncchamber.net.
Schedule:
9:30 a.m. – Meet at NC General Assembly for 30-minute issue briefing
10 a.m. – Visit with legislators
12 p.m. – Lunch & Guest Speakers (governor & legislative leadership invited)
2 p.m. – NC Manufacturers’ Day ends (those who want to stay for NC House and Senate sessions can)
