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Bill > H181

NC H181

NC H181
Tax Relief for Working Families Act

summary

Introduced
02/24/2025
In Committee
02/25/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Session

Bill Summary

AN ACT TO PROVIDE TAX RELIEF FOR WORKING FAMILIES BY REENACTING THE EARNED INCOME TAX CREDIT. Whereas, North Carolina families face unprecedented challenges resulting from rising costs; and Whereas, studies have shown that the earned income tax credit results in working families having additional funds for health and educational expenses; and Whereas, the earned income tax credit can help provide greater financial security and self-sufficiency to working families with children; and Whereas, the earned income tax credit would help working families across the State during a time of rising costs for housing, child care, and basic essentials of life, including putting food on the table; Now, therefore,

AI Summary

This bill reenacts and modifies North Carolina's Earned Income Tax Credit (EITC), a tax benefit designed to provide financial support to working families. The bill establishes a state-level tax credit equal to 20% of the federal EITC amount, which individuals can claim when they qualify for the federal earned income tax credit. For nonresident or part-year residents, the credit will be proportionally adjusted based on their time in the state. The credit is fully refundable, meaning that if the credit amount exceeds the taxpayer's state tax liability, the excess will be refunded to the taxpayer. This version removes previous sunset provisions that would have ended the credit and eliminates specific percentage variations that existed in prior versions of the law. The bill will take effect for taxable years beginning on or after January 1, 2025, and aims to provide additional financial support to working families during a time of rising living costs by helping to offset tax burdens and provide extra income for essential expenses like housing, child care, and food.

Committee Categories

Government Affairs

Sponsors (42)

Gloristine Brown (D)*,  Allen Buansi (D)*,  Tim Longest (D)*,  Lindsey Prather (D)*,  Eric Ager (D),  Vernetta Alston (D),  Amber Baker (D),  Cynthia Ball (D),  Mary Belk (D),  Cecil Brockman (D),  Kanika Brown (D),  Terry Brown (D),  Laura Budd (D),  Deb Butler (D),  Becky Carney (D),  Maria Cervania (D),  Tracy Clark (D),  Bryan Cohn (D),  Mike Colvin (D),  Sarah Crawford (D),  Allison Dahle (D),  Julia Greenfield (D),  Pricey Harrison (D),  Zack Hawkins (D),  Beth Helfrich (D),  Frances Jackson (D),  Ray Jeffers (D),  Monika Johnson-Hostler (D),  Ya Liu (D),  Brandon Lofton (D),  Carolyn Logan (D),  Jordan Lopez (D),  Nasif Majeed (D),  Marcia Morey (D),  Garland Pierce (D),  Rodney Pierce (D),  Dante Pittman (D),  Renée Price (D),  Amos Quick (D),  Robert Reives (D),  Phil Rubin (D),  Julie Von Haefen (D), 

Last Action

Ref To Com On Rules, Calendar, and Operations of the House (on 02/25/2025)

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