NC H1118

Extends the sunset date of the qualified business investment tax incentive program from January 1, 2013 to January 1, 2016, allowing the program to continue for three additional years.

Increases the annual cap on total tax credits allowed under the program from $7,500,000 to $10,000,000 for investments made in a calendar year.

Creates a new exclusion of gain provision allowing individuals to exclude from North Carolina taxable income gains from the sale or exchange of qualified securities in qualified businesses, with a recapture mechanism requiring repayment of previously claimed credits.

Expands the definition of equity securities to include limited liability company interests and adds provisions for qualified licensee businesses (those commercializing university-developed technology) and qualified grantee businesses (those receiving Small Business Innovation Research Program funding).

Effective for taxable years beginning on or after January 1, 2012, making the provisions applicable retroactively to that date.