NC S478

Allow small businesses to deduct deposits to a capital improvement account from North Carolina state income taxes, with tiered limits based on adjusted gross income: 5% up to $1,000,000, 2% from $1,000,000 to $2,000,000, and 1% from $2,000,000 to $3,000,000

Define "small business" as any business with cumulative gross receipts not exceeding $10,000,000 for the taxable year

Restrict capital improvement account deposits to improvements that add value to real property, prolong its useful life by at least 10 years, or adapt property to new business uses, and require accounts be held at federally insured banking institutions

Require taxpayers to add back to taxable income any previously deducted amounts that were withdrawn and not used for qualified capital improvements

Make the act effective for taxable years beginning on or after January 1, 2023