NC S715

Appropriates $300,000,000 from American Rescue Plan Act funds to the Department of Revenue to support hospitality businesses impacted by COVID-19.

Creates the COVID-19 Hospitality Business Recovery Program providing one-time grants to qualifying businesses with maximum award of the lesser of $500,000 or 10% of sales tax reduction from 2020 compared to 2019.

Establifies eligibility requirements including subject to income tax, 15% or greater sales tax reduction in 2020, classified in Sector 72 (accommodation and food service), no overdue tax debt, Count on Me NC business status, and no receipt of other state or federal assistance.

Permits grant funds for rent, mortgage, payroll, property damage, personal protective equipment, property taxes, and other operating expenses, with all funds required to be used by December 31, 2021.

Requires grant recipients to maintain business operations for minimum six months or face proportionate clawback of grant funds, and makes grants non-deductible for tax purposes for tax years 2021 and 2022.