The North Carolina Electronics and Information Technologies Association (NCEITA) lauded the NC General Assembly’s extension of the Qualified Business Venture Tax Credit (QBV Tax Credit).
NCEITA and many other organizations, such as NC BIO, lobbied the assembly to extend the credit because, the organization says, “it is of tremendous help to small companies and entrepreneurs.”
The QBV Tax Credit allows individuals up to a 25 percent state tax credit for investments in qualified small companies, although it is limited to $50,000 an individual and $6 million total statewide a year.
Four North Carolina Business School Deans argued in a an op-ed piece circulated by NCEITA that the QVB Tax Credit has become an “essential factor” in helping small business start-ups get seed-stage, “angel” investor backing.
The Deans say this is important to help North Carolina “make the transition from agriculture and manufacturing to information technology and life sciences.”
They cite a study conducted by the NC Council for Entrepreneurial Development that estimates the start-ups helped by the tax credit “created over 2,800 NC jobs, earned over $92 million and paid over $11 million in NC state income taxes.”
They add that additional jobs were created and state taxes paid by the many service companies interacting with the start-ups to “create a positive ripple effect throughout North Carolina’s economy.”
The bill is expected to become law within ten days with Gov. Easley’s signature.
Joan Myers, president and chief executive of NCEITA said, “By extending the credit, they are showing their commitment to helping technology entrepreneurs. This is an important part of sustaining and growing knowledge jobs.”
Authors of the op-ed piece quoted: Dr. Jon Bartley,Dean of the NC State College of Management; Dr. Charles Moyer, Dean of the Wake Forest College of Management); Dr. Robert Sullivan, Dean of the UNC Chapel Hill Kenan-Flagler Business School); and Dr. Ernest Uhr Dean of the East Carolina University School of Business.
NCEITA
www.nceita.org
