S729 Summary: Various Changes to the Revenue Laws

• Repeals the tax on domestic mutual burial associations under G.S. 105-121.1 and modifies insurance company license fees effective April 1, 2017.

• Updates corporate income tax provisions including air transportation apportionment rules, qualified interest expense limitations to 15% of adjusted taxable income (effective for taxable years beginning January 1, 2016), and exclusions for financial swaps and dividends from gross receipts.

• Modifies personal income tax deductions to allow repayment of included income, deductions for federal tax credits, net operating loss carryforwards, and Parental Savings Trust Fund withdrawals (effective for taxable years beginning January 1, 2016).

• Makes multiple sales and use tax changes including modifications to definitions of prepared food, storage, accommodations, and conditional service contracts; adds exemption for school-sponsored fundraising events; and updates Streamlined Agreement reference to September 17, 2015.

• Adjusts excise taxes on motor fuel, tobacco products, and white goods; modifies fuel tax refund calculations; allows hospital authorities created under G.S. 131E-17 various tax benefits; and provides refund claim window through July 1, 2016 for deferred income under IRC Section 108(i)(1).