S.627

North Carolina S627 allows small businesses to exclude certain capital improvement account deposits from state income tax.

North Carolina S627 modifies state income tax rules to allow small businesses to exclude certain deposits to a capital improvement account from their taxable income. A small business is defined as one with gross receipts not exceeding ten million dollars. The capital improvement account must be held at a federally insured banking institution and used for improvements that add value to real property, prolong its useful life by at least 10 years, or adapt it to new uses.