North Carolina FederalTax Reform Allocation Committee.
§ 143‑433.6. Legislative findings.
(a) The GeneralAssembly finds and determines that the Tax Reform Act of 1984 established afederal volume limitation upon the aggregate amount of "private activitybonds" that may be issued by each state; that, pursuant to Section 103(n)of the Internal Revenue Code of 1954, as amended, a previous Governor of NorthCarolina issued Executive Order 113 proclaiming a formula for allocating thefederal volume limitation for North Carolina; that on October 22, 1986, the TaxReform Act of 1986, hereinafter referred to as the "Tax Reform Act",was enacted; that the Tax Reform Act (i) establishes a new unified limitationfor private activity bonds on a state by state basis, (ii) establishes a newdefinition of the types of private activity bonds to be included under thosenew limitations, (iii) establishes a new low‑income housing credit toinduce the construction of and the improvement of housing for low‑income people,and (iv) limits the aggregate use of this low‑income housing credit on astate by state basis; that the Tax Reform Act provides for federal formulas forthe allocation of these "state by state" resources, and also providesfor states which cannot use the federal formula for allocation to setallocation procedures and formulas which are more appropriate for theindividual states; that the Tax Reform Act gives authority for the legislatureof each state to formulate and execute plans for allocation; and that Section146 of the Internal Revenue Code of 1986, as amended, and Section 42 of theInternal Revenue Code of 1986, as amended, will require continued inquiry andstudy in the ways in which North Carolina can best and most fairly manage andutilize resources provided therein.
(b) The GeneralAssembly further finds and determines that the Economic Growth and Tax ReliefReconciliation Act of 2001 added new subsections (a)(13) and (k) to section 142of the Internal Revenue Code of 1986, as amended, which (i) establish a newtype of private activity bond that can be issued to finance "qualifiedpublic educational facilities," (ii) establish an annual aggregatelimitation on the face amount of qualified public educational facility bondsthat may be issued on a state‑by‑state basis, (iii) provide thateach state may allocate the annual aggregate limitation for any calendar yearin such manner as each state determines appropriate, and (iv) provide for anelective carryforward by each state of the unused annual aggregate limitation;and that subsections (a)(13) and (k) will require continued inquiry and studyin the ways in which North Carolina can best and most fairly manage and utilizethe resource provided therein.
(c) The GeneralAssembly further finds and determines that section 1400U‑3 of theAmerican Recovery and Reinvestment Tax Act of 2009 (ARRTA) added a new type ofexempt facility bond called "recovery zone facility bonds" to be usedto finance construction, renovation, and equipping of recovery zone propertyfor use in any trade or business in a recovery zone, all as defined in ARRTA,and a new type of governmental bond called "recovery zone economicdevelopment bonds." The ARRTA provides a formula for allocation ofauthority to issue recovery zone facility bonds and recovery zone economicdevelopment bonds to the states and by which the authority is to be reallocatedby the State to counties and large municipalities within the State.
(d) The GeneralAssembly further finds and determines that section 54D of the Internal RevenueCode of 1986, as amended, permits the issuance of tax credit bonds called"qualified energy conservation bonds" (QECBs), the proceeds of whichmust be used for certain energy conservation purposes enumerated in section54D. Section 54D and ARRTA provide a national bond limitation for the issuanceof QECBs, and the Treasury Department has allocated that authority among thestates. Under section 54D, the United States is required to reallocate theauthority to issue QECBs to the counties and large local governments within thestates based on population, in accordance with the guidelines provided by theTreasury Department, and to assure that not more than thirty percent (30%) ofthe QECBs issued in a state are used for private activity bonds, as defined insection 54D. (1987,c. 588, s. 1; 2008‑204, s. 6.1; 2009‑140, s. 2.)
North Carolina FederalTax Reform Allocation Committee.
§ 143‑433.6. Legislative findings.
(a) The GeneralAssembly finds and determines that the Tax Reform Act of 1984 established afederal volume limitation upon the aggregate amount of "private activitybonds" that may be issued by each state; that, pursuant to Section 103(n)of the Internal Revenue Code of 1954, as amended, a previous Governor of NorthCarolina issued Executive Order 113 proclaiming a formula for allocating thefederal volume limitation for North Carolina; that on October 22, 1986, the TaxReform Act of 1986, hereinafter referred to as the "Tax Reform Act",was enacted; that the Tax Reform Act (i) establishes a new unified limitationfor private activity bonds on a state by state basis, (ii) establishes a newdefinition of the types of private activity bonds to be included under thosenew limitations, (iii) establishes a new low‑income housing credit toinduce the construction of and the improvement of housing for low‑income people,and (iv) limits the aggregate use of this low‑income housing credit on astate by state basis; that the Tax Reform Act provides for federal formulas forthe allocation of these "state by state" resources, and also providesfor states which cannot use the federal formula for allocation to setallocation procedures and formulas which are more appropriate for theindividual states; that the Tax Reform Act gives authority for the legislatureof each state to formulate and execute plans for allocation; and that Section146 of the Internal Revenue Code of 1986, as amended, and Section 42 of theInternal Revenue Code of 1986, as amended, will require continued inquiry andstudy in the ways in which North Carolina can best and most fairly manage andutilize resources provided therein.
(b) The GeneralAssembly further finds and determines that the Economic Growth and Tax ReliefReconciliation Act of 2001 added new subsections (a)(13) and (k) to section 142of the Internal Revenue Code of 1986, as amended, which (i) establish a newtype of private activity bond that can be issued to finance "qualifiedpublic educational facilities," (ii) establish an annual aggregatelimitation on the face amount of qualified public educational facility bondsthat may be issued on a state‑by‑state basis, (iii) provide thateach state may allocate the annual aggregate limitation for any calendar yearin such manner as each state determines appropriate, and (iv) provide for anelective carryforward by each state of the unused annual aggregate limitation;and that subsections (a)(13) and (k) will require continued inquiry and studyin the ways in which North Carolina can best and most fairly manage and utilizethe resource provided therein.
(c) The GeneralAssembly further finds and determines that section 1400U‑3 of theAmerican Recovery and Reinvestment Tax Act of 2009 (ARRTA) added a new type ofexempt facility bond called "recovery zone facility bonds" to be usedto finance construction, renovation, and equipping of recovery zone propertyfor use in any trade or business in a recovery zone, all as defined in ARRTA,and a new type of governmental bond called "recovery zone economicdevelopment bonds." The ARRTA provides a formula for allocation ofauthority to issue recovery zone facility bonds and recovery zone economicdevelopment bonds to the states and by which the authority is to be reallocatedby the State to counties and large municipalities within the State.
(d) The GeneralAssembly further finds and determines that section 54D of the Internal RevenueCode of 1986, as amended, permits the issuance of tax credit bonds called"qualified energy conservation bonds" (QECBs), the proceeds of whichmust be used for certain energy conservation purposes enumerated in section54D. Section 54D and ARRTA provide a national bond limitation for the issuanceof QECBs, and the Treasury Department has allocated that authority among thestates. Under section 54D, the United States is required to reallocate theauthority to issue QECBs to the counties and large local governments within thestates based on population, in accordance with the guidelines provided by theTreasury Department, and to assure that not more than thirty percent (30%) ofthe QECBs issued in a state are used for private activity bonds, as defined insection 54D. (1987,c. 588, s. 1; 2008‑204, s. 6.1; 2009‑140, s. 2.)
North Carolina FederalTax Reform Allocation Committee.
§ 143‑433.6. Legislative findings.
(a) The GeneralAssembly finds and determines that the Tax Reform Act of 1984 established afederal volume limitation upon the aggregate amount of "private activitybonds" that may be issued by each state; that, pursuant to Section 103(n)of the Internal Revenue Code of 1954, as amended, a previous Governor of NorthCarolina issued Executive Order 113 proclaiming a formula for allocating thefederal volume limitation for North Carolina; that on October 22, 1986, the TaxReform Act of 1986, hereinafter referred to as the "Tax Reform Act",was enacted; that the Tax Reform Act (i) establishes a new unified limitationfor private activity bonds on a state by state basis, (ii) establishes a newdefinition of the types of private activity bonds to be included under thosenew limitations, (iii) establishes a new low‑income housing credit toinduce the construction of and the improvement of housing for low‑income people,and (iv) limits the aggregate use of this low‑income housing credit on astate by state basis; that the Tax Reform Act provides for federal formulas forthe allocation of these "state by state" resources, and also providesfor states which cannot use the federal formula for allocation to setallocation procedures and formulas which are more appropriate for theindividual states; that the Tax Reform Act gives authority for the legislatureof each state to formulate and execute plans for allocation; and that Section146 of the Internal Revenue Code of 1986, as amended, and Section 42 of theInternal Revenue Code of 1986, as amended, will require continued inquiry andstudy in the ways in which North Carolina can best and most fairly manage andutilize resources provided therein.
(b) The GeneralAssembly further finds and determines that the Economic Growth and Tax ReliefReconciliation Act of 2001 added new subsections (a)(13) and (k) to section 142of the Internal Revenue Code of 1986, as amended, which (i) establish a newtype of private activity bond that can be issued to finance "qualifiedpublic educational facilities," (ii) establish an annual aggregatelimitation on the face amount of qualified public educational facility bondsthat may be issued on a state‑by‑state basis, (iii) provide thateach state may allocate the annual aggregate limitation for any calendar yearin such manner as each state determines appropriate, and (iv) provide for anelective carryforward by each state of the unused annual aggregate limitation;and that subsections (a)(13) and (k) will require continued inquiry and studyin the ways in which North Carolina can best and most fairly manage and utilizethe resource provided therein.
(c) The GeneralAssembly further finds and determines that section 1400U‑3 of theAmerican Recovery and Reinvestment Tax Act of 2009 (ARRTA) added a new type ofexempt facility bond called "recovery zone facility bonds" to be usedto finance construction, renovation, and equipping of recovery zone propertyfor use in any trade or business in a recovery zone, all as defined in ARRTA,and a new type of governmental bond called "recovery zone economicdevelopment bonds." The ARRTA provides a formula for allocation ofauthority to issue recovery zone facility bonds and recovery zone economicdevelopment bonds to the states and by which the authority is to be reallocatedby the State to counties and large municipalities within the State.
(d) The GeneralAssembly further finds and determines that section 54D of the Internal RevenueCode of 1986, as amended, permits the issuance of tax credit bonds called"qualified energy conservation bonds" (QECBs), the proceeds of whichmust be used for certain energy conservation purposes enumerated in section54D. Section 54D and ARRTA provide a national bond limitation for the issuanceof QECBs, and the Treasury Department has allocated that authority among thestates. Under section 54D, the United States is required to reallocate theauthority to issue QECBs to the counties and large local governments within thestates based on population, in accordance with the guidelines provided by theTreasury Department, and to assure that not more than thirty percent (30%) ofthe QECBs issued in a state are used for private activity bonds, as defined insection 54D. (1987,c. 588, s. 1; 2008‑204, s. 6.1; 2009‑140, s. 2.)
