Bill > S712

This bill modifies North Carolina's income tax structure and provides benefits for caregiving workers in several key ways. First, it establishes a graduated income tax rate system for 2025 and beyond, with rates ranging from 4.25% to 5.05% depending on income level and filing status, and includes a revenue trigger mechanism that could further reduce tax rates if certain General Fund revenue thresholds are met. The bill also creates a tax exemption for income earned by specific essential workers, including firefighters, emergency medical services personnel, law enforcement officers, child care workers, public school employees, probation and parole officers, and corrections officers. Additionally, the legislation appropriates $165 million annually to provide subsidized child care services for families of "qualifying caregiver workers" who meet specific employment and income criteria (annual household income not exceeding $125,000 and working at least 30 hours per week in specified professions). The child care subsidies will prioritize child care workers, and the provisions become effective on July 1, 2025, with the tax rate changes applying to taxable years beginning on or after January 1, 2025.

Budget and Finance

https://www.ncleg.gov/BillLookUp/2025/S712