NC H1116

Creates a temporary tax credit for eligible small businesses with no more than 500 full-time employees in North Carolina that create new jobs filled by qualified employees.

Credit equals 6.2% of wages paid to each new employee over a 12-month period, capped at $5,000 per job and $200,000 total per business.

Eligible new jobs must pay at least $20,000 in wages over 12 months and be filled by unemployed individuals, underemployed individuals (less than 40 hours for 180 days prior), or veterans discharged within five years.

Excludes jobs that are transfers from related businesses, jobs held by family members or significant owners, and prevents businesses from claiming this credit and other job creation credits for the same position.

Applies to taxable years beginning on or after January 1, 2013, and credits can be claimed against franchise tax, income tax, or gross premiums tax.