NC H263

Creates a tax credit for new jobs created by small businesses, defined as taxpayers employing no more than 50 eligible employees and not engaged in retail trade or food services.

Allows small businesses to claim a job creation credit based on the development tier of the county where the job is located: $12,500 for Tier One counties, $5,000 for Tier Two, and $750 for Tier Three.

Provides an additional $2,000 credit per job for small businesses, in addition to the base tier amount, when jobs are created in urban progress zones or agrarian growth zones.

Modifies existing job creation credit eligibility requirements (G.S. 105-129.83) so small businesses are exempt from certain business eligibility restrictions that apply to other taxpayers.

Effective for taxable years beginning on or after January 1, 2013.