A tax is imposed on the State net income of every C Corporation doing business in this State. An S Corporation is not subject to the tax levied in this section. The tax is a percentage of the taxpayer's State net income computed as follows:
Taxable Years Beginning Tax
In 2025 2.25%
In 2026 2%
In 2028 1%
After 2029 0%. (1939, c. 158, s. 311; 1941, c. 50, s. 5; 1943, c. 400, s. 4; 1945, c. 752, s. 3; 1953, c. 1302, s. 4; 1955, c. 1350, s. 18; 1957, c. 1340, s. 4; 1959, c. 1259, s. 4; 1963, c. 1169, s. 2; c. 1186; 1967, c. 1110, s. 3; 1973, c. 1287, s. 4; 1975, c. 275, s. 4; 1977, c. 657, s. 4; 1979, c. 179, s. 2; 1981, c. 15; 1983, c. 713, s. 69; 1987, c. 622, s. 8; 1987 (Reg. Sess., 1988), c. 1089, s. 5; 1989, c. 728, s. 1.33; 1991, c. 689, s. 258; 1996, 2nd Ex. Sess., c. 13, s. 2.1; 2013-316, ss. 2.1(a), 2.2(a); 2015-241, s. 32.13(a); 2017-57, s. 38.5(a), (b); 2021-180, s. 42.2(a).)
§ 105-130.3A: Expired.
§ 105-130.3B: Expired pursuant to its own terms, effective for taxable years beginning on or after January 1, 2011.
§ 105-130.3C: Repealed by Session Laws 2017-57, s. 38.5(c), effective June 28, 2017.
Notes of Decisions
A & F Trademark, Inc. v. Tolson, 605 S.E.2d 187 (N.C. Ct. App. 2004).
· cites it 8× “Income Tax Under N.C. Gen. Stat. § 105-130.3 (2003), “[a] tax is imposed on the State net income of every C Corporation doing business in this State.”
Midrex Tech., Inc. v. N.C. Dep't of Revenue, 794 S.E.2d 785 (N.C. 2016).
“§ 105-130.3 (2015). As a result of the fact that a corporation may earn income both inside and outside of North Carolina and the fact that there are limitations on the extent to which North Carolina has the constitutional authority to tax income earned outside North Carolina, a…”
Dunn v. State of North Carolina, 635 S.E.2d 604 (N.C. Ct. App. 2006).
· cites it 4× “2 , they may not represent non-individual taxpayers, such as corporations or estates and trusts that pay tax under N.C. Gen. Stat. § 105-130.3 and N.C. Gen.”
Fieldcrest Mills, Inc. v. Coble, 227 S.E.2d 562 (N.C. 1976).
· cites it 2× “Thus, G.S. § 105-130.3 (Cum. Supp. 1975) presently provides: “Every corporation doing business in this State shall pay annually an income tax equivalent to six percent (6 %) of its net income or the portion thereof allocated and apportioned to this State.”
Fulton Corp. v. Justus, 430 S.E.2d 494 (N.C. Ct. App. 1993).
· cites it 2× “N.C. Gen. Stat. § 105-130.3 (1992). If a corporation does business in North Carolina and other states, then only that percentage of business income apportioned to North Carolina is taxable here.”
N.C. Dep't of Revenue v. Graybar Elec. Co. (N.C. 2020).
· cites it 2× “Under the Code, federal taxable income “means gross income minus the deductions allowed by [the Code].” I.R.C. § 63(a). Although the Code identifies dividends as an item of gross income, id.”
N.C. Dep't of Revenue v. Graybar Elec. Co. (N.C. 2020).
· cites it 2× “Under the Code, federal taxable income “means gross income minus the deductions allowed by [the Code].” I.R.C. § 63(a). Although the Code identifies dividends as an item of gross income, id.”
N.C. Dep't of Revenue v. Graybar Elec. Co., Inc., 2019 NCBC 2 (N.C. Bus. Ct. 2019).
· cites it 2× “Under the Code, federal taxable income “means gross income minus the deductions allowed by [the Code].” I.R.C. § 63(a). Although the Code identifies dividends as an item of gross income, id.”
Fulton Corp. v. Justus, 450 S.E.2d 728 (1994).
“N.C.G.S. § 105-130.3 (1992). If a corporation does business in North Carolina and other states, then only that percentage of its business income which is apportionable to North Carolina is taxable here.”
Midrex Techs., Inc. v. N.C. Dep't of Revenue, 2015 NCBC 88 (N.C. Bus. Ct. 2015).
· cites it 2× “G.S. § 105-130.3. Notwithstanding these differences, when a corporation has income from sources both within and outside the State, it must determine the portion of its Capital Stock Base and State net income that is attributable to North Carolina.”
Mut. Sav. & Loan Ass'n v. Lanier, 182 S.E.2d 368 (N.C. 1971).
· cites it 3× “The 1967 Act (G.S. 105-130.3) provided: “Every corporation doing business in this State shall pay annually an income tax equivalent to six per cent (6%) of its net income or the portion thereof allocated and apportioned to this State.”
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