Brooks Pierce Capital Dispatch: Updates from the NC General Assembly and Governor’s Office, April 23, 2021

April 23, 2021
COVID under microscope

This week, Gov. Roy Cooper announced that he plans to lift many COVID-19 restrictions on June 1 and legislators considered a number of bills.                  

Lifting COVID-19 Restrictions

Gov. Cooper  announced this week that due to improving COVID-19 metrics and success in vaccinating people, he will issue a new Executive Order next week lifting certain restrictions currently in place effective June 1. At this point, over 6.5 million vaccines have been administered in North Carolina, about 47% of adults are at least partially vaccinated, and 35% are fully vaccinated. More than 76% of people 65 and older have had at least one shot. 

Waive Interest on State Income Tax Payments

A bill (H 279) clarifying that individual taxpayers do not have to pay interest on their 2020 state income tax payment if filed by May 17 has passed the House and has cleared two Senate committees. The NC Department of Revenue had earlier extended this year’s filing deadline to May 17 and indicated that no penalties would be due if filing was done on or before that date. A change in state law was necessary to address the interest issue. The bill will next be considered by the entire Senate.

PPP Loan Expenses

A bill (H 334) clarifying that expenses related to federal Paycheck Protection Program (PPP) loans are not subject to state income tax for tax year 2020 passed the House this week and was sent to the Senate. The bill temporarily repeals a provision in current law that does not allow businesses to deduct expenses funded with Payroll Protection Program (PPP) dollars if the proceeds received from forgiven PPP loans are excluded from income for tax purposes.

Conducting business electronically and remote shareholder meetings

The Senate this week passed a bill (S 410) to authorize nonprofit corporations to conduct business electronically and to hold remote meetings. A bill (S 138) allowing for-profit corporations to hold remote shareholder meetings earlier passed the Senate and is pending in the House. 

For more information, contact a member of the Brooks Pierce Government Affairs Team, linked below.

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