The North Carolina legislature has passed a $21.74 billion budget Gov. Pat McCrory says he will sign it today (Friday). The 429-page North Carolina budget compromise bill, scheduled for an NC Senate, reduces personal income tax rates, fails to renew the 35 percent renewable energy tax break, and continues funding the NC Biotechnology Center at $13.6 million, despite being targeted for a cut earlier, and creates a “venture capital multiplier fund.”
The budget also creates a new venture capital multiplier fund. A third-party professional investment managment firm registered with teh U.S. Securities and Exchange Commission, will be selected to administer the fund. Previous reports pegged the fund at $40 milion.
The bill cuts personal income tax rates – which could help economic development efforts. It adds sales taxes on some services not currently taxed. The personal tax rate will fall to 5.499 percent in 201`7 from 5.75 percent now.
Gov. McCrory says he got 90 percent of what he wanted, but state Democrats expressed skepticism over some GOP math regarding taxes and other aspects of the bill.
Look for our upcoming report on how the new venture fund will operate.
