summary
Introduced
01/29/2025
01/29/2025
In Committee
03/11/2025
03/11/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Session
Bill Summary
AN ACT TO ALLOW AN INCOME TAX DEDUCTION FOR OVERTIME COMPENSATION, UP TO TWO THOUSAND FIVE HUNDRED DOLLARS OF BONUS PAY, AND TIPS.
AI Summary
This bill proposes to create three new income tax deductions for North Carolina taxpayers: first, a deduction for overtime compensation earned under the Fair Labor Standards Act, which allows each spouse in a joint filing to claim the deduction separately; second, a deduction for bonus pay up to $2,500, specifically defined as supplemental wages paid as a cash award recognizing outstanding work or dedication (with the same joint filing provision); and third, a deduction for tips that are required to be reported to an employer under federal tax code. These deductions would be added to the existing list of potential income tax deductions that taxpayers can claim when calculating their North Carolina taxable income. The bill specifies that these new deductions will become effective for tax years beginning on or after January 1, 2025, and taxpayers will need to provide any information requested by the Secretary of Revenue to claim these deductions. The goal appears to be providing tax relief for workers by reducing their taxable income for certain types of supplemental earnings.
Committee Categories
Budget and Finance, Business and Industry, Government Affairs
Sponsors (47)
John Bell (R)*,
Allen Chesser (R)*,
Erin Paré (R)*,
Harry Warren (R)*,
Jonathan Almond (R),
Dean Arp (R),
Brian Biggs (R),
Mark Brody (R),
Grant Campbell (R),
Jennifer Capps Balkcom (R),
Richard Carver (R),
Mike Clampitt (R),
Bryan Cohn (D),
Patricia Cotham (R),
Jimmy Dixon (R),
Brian Echevarria (R),
Blair Eddins (R),
Karl Gillespie (R),
Ed Goodwin (R),
Kyle Hall (R),
Kelly Hastings (R),
Chris Humphrey (R),
Cody Huneycutt (R),
Frank Iler (R),
Jake Johnson (R),
Brenden Jones (R),
Keith Kidwell (R),
Ya Liu (D),
Donnie Loftis (R),
Jarrod Lowery (R),
Jeff McNeely (R),
Charlie Miller (R),
Ben Moss (R),
Larry Potts (R),
Reece Pyrtle (R),
Tim Reeder (R),
Heather Rhyne (R),
Dennis Riddell (R),
Stephen Ross (R),
Mike Schietzelt (R),
Paul Scott (R),
Larry Strickland (R),
Brian Turner (D),
Diane Wheatley (R),
Donna White (R),
David Willis (R),
Jeff Zenger (R),
Last Action
Re-ref Com On Finance (on 03/11/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ncleg.gov/BillLookUp/2025/H11 |
| Analysis - Summary H11-SMTM-4(e1)-v-4 | https://dashboard.ncleg.gov/api/Services/BillSummary/2025/H11-SMTM-4(e1)-v-4 |
| BillText | https://www.ncleg.gov/Sessions/2025/Bills/House/PDF/H11v1.pdf |
| BillText | https://www.ncleg.gov/Sessions/2025/Bills/House/PDF/H11v0.pdf |
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