Agenda - 10-18-2007-3 - Laserfiche WebLink

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I �0� NORTH CAROLINA the state of ritinds - INCENTIVES -SALES AND USETAx EXEMPTIONS, REFUNDS AND DISCOUNTS North Carolina offers reduced rate allowances for certain business items. For example: Exemptions .':,. • Purchases of ingredients or component parts of manufactured products are exempt from sales or use tax. • Packaging containers and items that become part of a manufactured product and are delivered with the product to the customer are exempt from sales and.use tax. Sales of electricity and eligible busing :properly to an internet service provider or web search portal business that invests;at least,$250.mil6onm private funds are exempt from sales and use tax. .:::::::::.::::::� • Sales of industrial machinery: and equipment are exempt from sales and use tax but are subject to an excise tax. i`til!!ti;;h: This rate is one peirceitwith a maximum of $80 per item. Sales of maclinery'and equipment to be located and used in a Tier IV data center are exempt from sales and use tax bufare subject to an excise tax. This rate is one percent with a maximum of $80 per article. ®,Piped natural gas is exempt from sales and use tax but is subject to an excise tax. This tax rate is based on the number of therms of gas consumed in a month. Motor vehicles are exempt.fi-orn sales and use tax but are subject to the highway use tax. Highway use tax is three percent of ft a retail'value of the motor vehicle with a maximum tax of $1,500 per vehicle. Refunds • The owner of an eligible facility is allowed an annual refund of sales and use taxes on purchases of building materials, fixtures and equipment if the facility costs at least $50 million in Tier 1 counties and $100 million in Tier 2 and 3 counties. Eligible industries include: • Air courier services • Aircraft manufacturing • Bioprocessing • Computer manufacturing • Financial services, securities operations, and related systems development • Motor vehicle manufacturing • Pharmaceutical and medicine manufacturing and distribution of pharmaceuticals and medicines • Semiconductor manufacturing See 6.5.105 - 164.14 6) (3) for more detailed industry descriptions • Testing labs or medical labs engaged in analytical services are eligible for a 50% refund on sales and use taxes paid on purchases of supplies used or consumed for analytical activities. North Carolina Department of Commerce Incentives 1 11