As you have seen in recent economic development headlines in the news, competition for jobs and business investment is fiercely competitive at both the national and global level. Earlier today, the N.C. House passed, with strong bipartisan support, legislation that takes important steps to make our state more competitive in this race for jobs. The NC Competes Act (House Bill 117) strengthens the state’s job recruitment tools to attract sustainable, long-term projects with significant economic impacts for North Carolina and its citizens.
Among other provisions in the bill, single sales factor apportionment is critically important to our state’s manufacturers. Moving to single sales factor will apportion corporate business income on the sole basis of the portion of the corporation’s total sales that occur in the state. This will enable North Carolina to compete in this area as states like Virginia, South Carolina and Georgia have adopted or are phasing in single sales factor apportionment. NC Competes is a good first step for companies that expect to invest more than $1 billion in the state. The NC Chamber supports additional steps to phase in single sales factor apportionment for all companies in North Carolina.
While supporting the House proposal, we also remain committed to advancing additional reforms to ensure companies that already employ millions of North Carolinians can look to expand and grow, spurring further business investments and job creation. Now is not the time for our state to be complacent. North Carolina must continually strive to position its business climate competitively to draw investment and keep, attract and grow good jobs for the future.
We appreciate the support of House members that voted for House Bill 117, and we will keep you updated in the bill’s progress as it moves to the Senate for consideration.
Gary J. Salamido
Vice President, Government Affairs
North Carolina Chamber