NC Qualified Business Investment Tax Credit


Businesses registered as either a qualified business venture (QBV) or qualified grantee business (QGB) for purposes of the state income tax credit established by the North Carolina General Statutes 105-163.010 et seq., are required to renew their registration annually.

Individuals, subject to the limitations contained in G.S. 105-163.012, who purchase the equity securities or subordinated debt of a qualified business directly from that business are allowed as a credit against their state income tax for the taxable year an amount equal to twenty-five percent (25%) of the amount invested.

Renewal is accomplished by the filing of an application for registration, with the appropriate items checked to indicate that such application is a renewal of a prior registration, accompanied by the appropriate filing fee.  The renewal is due no later than the fifteenth (15th) day of the third (3rd) month following the close of the business’ fiscal year.  If your year end is December 31st then the renewal date is March 15th.  Note the date of filing is the recorded receipt date by the Securities Division of the North Carolina Secretary of State and not the date mailed. The QBV renewal application must be accompanied by a “certified” review/audit financial statement for the business’ most recent fiscal year.  If you have conditional QBV status for the prior year you may also be required to submit certified financial statements for the prior year.  QGBs are not required to submit certified financial statements.

Additional information is available at:

Department of the Secretary of State

Security Division

P.O. Box 29622

Raleigh, NC 27626-0525

Telephone: 919.733.3924

Facsimile: 919.821.0818

Email: secdiv@mail.secstate.state.nc.us

www.secretary.state.nc.us/bus_tax/overview.htm

 

About Scale Finance

Scale Finance LLC (www.scalefinance.com) provides contract CFO services, Controller solutions, and support in raising capital, or executing M&A transactions, to entrepreneurial companies. The firm specializes in cost-effective financial reporting, budgeting & forecasting, implementing controls, complex modeling, business valuations, and other financial management, and provides strategic help for companies raising growth capital or considering M&A/recapitalization opportunities. Most of the firm’s clients are growing technology, healthcare, business services, consumer, and industrial companies at various stages of development from start-up to tens of millions in annual revenue. Scale Finance LLC has offices in Charlotte, NC, the Triangle, the Triad, Southern Pines, and Wilmington with a team of more than 30 professionals serving more than 100 companies throughout the region.

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