Philip Morris Beats North Carolina in $6 Million Credit Cap Bout

The North Carolina Supreme Court found on Friday that a 2003 change in law placed a $6 million cap on cigarette export credits that can be used in a single year because that’s consistent with the state’s previous interpretation of the law.

The ruling vindicates the contention of Philip Morris USA Inc. that the state wrongfully disallowed $7.2 million in export credits it carried forward on its corporate income and franchise tax returns for 2012 through 2014, then erroneously imposed underreporting penalties of $1.5 million.

A 2003 amendment to the North Carolina General Statutes §§105-130.45 capped at $6 million the ...