Bill > H384

This bill does two primary things: First, it creates a new state income tax deduction specifically for enlisted members of the Army or Air National Guard who hold lower-ranking enlisted positions (ranks E-1 through E-5), allowing them to deduct their entire federal basic pay from their state income taxes. Second, the bill modifies the distribution of sports wagering tax proceeds, reducing the percentage allocated to the North Carolina Major Events, Games, and Attractions Fund from 30% to 29% and adjusting the remaining proceeds to be directed to the General Fund. The tax deduction for National Guard members will take effect for taxable years beginning on or after January 1, 2025, while the changes to sports wagering tax distribution will apply from July 1, 2025. The bill aims to provide a financial benefit to lower-ranked National Guard members and make slight adjustments to how sports wagering tax revenue is allocated.

Budget and Finance, Military Affairs and Security

https://www.ncleg.gov/BillLookUp/2025/H384