Bill > S882

This bill reenacts the Earned Income Tax Credit (EITC), a tax credit for low-to-moderate income working individuals and families, by recodifying it under a new section of law and establishing it as a credit equal to ten percent (10%) of the federal EITC amount, replacing a previous tiered percentage system and a sunset clause that would have ended the credit. The EITC is a federal program, and this bill allows individuals in North Carolina to claim a state-level credit based on their federal EITC. Importantly, this state credit is refundable, meaning if the credit amount is more than the tax owed, the taxpayer will receive the difference as a refund, and this reenactment is effective for taxable years beginning on or after January 1, 2026.