NC H881

Exempts income derived from manufacturing activities from North Carolina income tax, with the deduction optional for individual taxpayers.

Defines manufacturing as industries in NAICS sectors 31-33, excluding quick printing and retail bakeries.

Exempts corporations that derive at least 80% of annual revenue directly from manufacturing activities from franchise tax obligations.

Excludes manufacturing property, payroll, and receipts from apportionment calculations for multi-state corporations that elect the manufacturing income deduction.

Effective for taxable years beginning January 1, 2012.