North Carolina G.S 105-129.16J was added to allow a tax credit for small businesses that make contributions to the State Unemployment Insurance Fund (SUIF) for wages paid for employment in North Carolina. A small business is defined as one whose cumulative gross receipts from the business activity do not exceed one million dollars for the tax year. The tax credit allowed is 25% of the qualified contributions to the SUIF and applies for tax years 2010 and 2011 only.

This tax credit may be claimed only against corporate and individual (pass-through) income tax. If the credit exceeds the entire tax liability for the tax year, reduced by the sum of all allowable credits, the excess is refundable. Please contact our office so we can help determine if your business qualifies for this temporary tax credit.