What is the Bill Lee Act?

ryanteaguebeckwith — Thu, 13 Sep 2007 17:06:12 -0400

Answer:

The Bill Lee Act of 1996 created tax credits for job creation, investment and worker training.

The act was signed into law by Gov. Jim Hunt on Aug. 2, 1996, and amended in 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005 and 2006.

The original bill lowered the state sales tax on food, the corporate income tax and other taxes. It also created a system of tax credits to encourage companies to locate in economically distressed counties.

The credits were originally aimed at manufacturing, warehousing and data processing jobs.

Central administrative offices and air courier services were added in 1997; customer-service call centers, wholesalers and electronic mail order operations in 1999; aircraft facilities in 2000; software publishing in 2001; computer manufacturing facilities in 2004; and motorsports facilities and research and development sites in 2006.

Central administrative offices were replaced by company headquarters in 2006.

Originally set to expire in 2002, the act was extended four years in the 2000 session, with the expectation that it would be overhauled and renewed before then.

In 2006, the tax credits were restructured to give more narrowly focused credits to address concerns that incentives were not going to the rural areas targeted by the bill. The new program's sunset was set for 2011.

Tax credits given before 2007 are generally referred to as William S. Lee Tax Credits. Those made under the restructured program are referred to as Article 3J Tax Credits.

The N.C. Department of Revenue issues yearly reports on the tax credits.

The act is named for former Duke Energy chairman William States Lee III, who chaired the N.C. Economic Development Committee for Governor Hunt. Lee died in 1996.

Its full title is the William S. Lee Quality Jobs and Business Expansion Act.

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What is the Bill Lee Act?