NC H642

Reduces the corporate income tax rate to 4.9% for C Corporations doing business in North Carolina, eliminating the previous graduated rate schedule that ranged from 7.5% to 6.9%.

Changes the Public School Building Capital Fund remittance fraction from a variable rate table (ranging from 1/15 to 5/69 depending on time period) to a fixed 5/49 of quarterly net corporate income tax collections.

Makes Section 1 effective for taxable years beginning on or after January 1, 2013, and Section 2 effective July 1, 2013, for the quarter ending September 30, 2013.

Does not subject S Corporations to the corporate income tax, maintaining existing treatment.