Bill > H628

This bill reenacts the Child Tax Credit in North Carolina with several key modifications. The bill increases the credit amount for qualifying children across different filing statuses and income brackets, with the maximum credit rising from $125 to $250 for certain income levels. A "qualifying child" is defined according to federal tax code section 152(c), which typically means a child under 17 who meets specific relationship, residence, and support tests. The bill also introduces a new provision making the child tax credit fully refundable, meaning if the credit exceeds the taxpayer's tax liability, the excess will be refunded by the Secretary. For non-resident or part-year residents, the credit will be proportionally adjusted based on their time in the state. Married couples filing separately are limited to the total credit amount that would be allowed on a joint return. The bill will take effect for taxable years beginning on or after January 1, 2025, providing tax relief for families with children by increasing the potential financial benefit of the child tax credit.

Government Affairs

https://www.ncleg.gov/BillLookUp/2025/H628