summary
Introduced
04/02/2025
04/02/2025
In Committee
04/03/2025
04/03/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Session
Bill Summary
AN ACT TO REPEAL THE CORPORATE INCOME TAX PHASEOUT. Whereas, North Carolina has been consistently ranked as one of the top states for business; and Whereas, North Carolina fosters a pro-business environment, fueled by the lowest corporate income tax in the United States, out of all states that levy a corporate income tax; and Whereas, North Carolina is still recovering from Hurricane Helene, one of the largest natural disasters in the State's history; and Whereas, Hurricane Helene has left significant long-term impacts to western North Carolina; and Whereas, it is the public policy of the General Assembly to ensure that North Carolina has the funds needed to support a full and complete recovery while remaining a low corporate income tax state; Now, therefore,
AI Summary
This bill addresses the corporate income tax structure in North Carolina by repealing the previously planned phaseout of the corporate income tax. Specifically, the bill permanently sets the corporate income tax rate at 2.25% for C Corporations doing business in the state, eliminating the previous schedule that would have gradually reduced the tax rate to 0% after 2029. Previously, the tax rate was planned to decrease from 2.25% in 2025 to 2% in 2026, 1% in 2028, and reach 0% after 2029. The bill maintains North Carolina's position as a business-friendly state with a low corporate income tax rate, while also ensuring stable revenue collection, particularly in the context of ongoing recovery efforts from Hurricane Helene. The new tax rate will take effect for taxable years beginning on or after January 1, 2026, providing clarity and predictability for businesses operating in the state.
Committee Categories
Government Affairs
Sponsors (10)
Eric Ager (D)*,
Terry Brown (D)*,
Jordan Lopez (D)*,
Phil Rubin (D)*,
Amber Baker (D),
Maria Cervania (D),
Zack Hawkins (D),
Carolyn Logan (D),
Nasif Majeed (D),
Rodney Pierce (D),
Last Action
Ref To Com On Rules, Calendar, and Operations of the House (on 04/03/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ncleg.gov/BillLookUp/2025/H711 |
| BillText | https://www.ncleg.gov/Sessions/2025/Bills/House/PDF/H711v1.pdf |
| BillText | https://www.ncleg.gov/Sessions/2025/Bills/House/PDF/H711v0.pdf |
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