NC S481

Appropriates $250,000,000 from the General Fund to the Department of Commerce to establish the COVID-19 Small Business Recovery Program providing one-time grants to eligible small businesses.

Defines qualifying businesses as entities subject to income tax with 2019 annual receipts of $8,000,000 or less and at least a 25% reduction in 2020 sales tax collections compared to 2019.

Limits individual grants to the lesser of $250,000 or the actual reduction in sales tax collections, with the Department of Revenue verifying eligibility using tax information.

Requires recipient businesses to maintain operations for a minimum of six months after receiving the grant or face proportionate clawback of funds.

Adds grant amounts as an exclusion from taxable income for tax years 2023, effective January 1, 2023 and expiring January 1, 2024.