Bill > S211

This bill reenacts the Earned Income Tax Credit (EITC) in North Carolina, maintaining a state-level tax credit that is linked to the federal EITC. Specifically, the bill reestablishes a state tax credit equal to five percent of the federal EITC amount that an individual qualifies for, which means taxpayers can reduce their state tax liability by an additional 5% of their federal EITC. The bill also preserves the refundable nature of the credit, allowing taxpayers to receive a refund if the credit exceeds their tax liability. For nonresident or part-year residents, the credit will be proportionally adjusted based on their time in the state. The bill extends the sunset provision, repealing the EITC effective for taxable years beginning on or after January 1, 2028, and will take effect for taxable years starting on or after January 1, 2025. This continues North Carolina's support for low to moderate-income working individuals and families by providing additional tax relief through the state-level EITC.

https://www.ncleg.gov/BillLookUp/2025/S211