NC S677

Reduces corporate income tax rate from 6.9% to 6% by 2016, with interim reductions to 6.5% in 2014 and 6.25% in 2015.

Transitions to single sales factor apportionment by 2016 (instead of current three-factor formula with property, payroll, and sales), phasing in gradually from 2014-2015.

Eliminates multiple corporate tax expenditures and credits effective January 1, 2014, including net operating loss deductions, charitable contribution deductions, and various industry-specific tax incentives.

Creates new wage, health insurance, environmental, and employee safety standards for economic development incentives, with wage standards tied to average weekly earnings by county and state.

Consolidates accelerated depreciation and section 179 expensing add-backs into a new statute (G.S. 105-130.5B) with 85% add-back and 20% annual deductions over five years.