HB 786 — Working Families Act.
Last action — Passed 1st Reading
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✓Introduced
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2In Committee
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3Passed House
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4Passed Senate
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5To Executive
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6Enacted
This bill is in committee in the House. Introduced April 03, 2025. It must pass committee before a floor vote.
Next likely step: a committee vote, then a floor vote in the House.
Prognosis
Where this bill stands today.
Odds of enactment
LowHow often bills like it became law.
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In Committee
Current position in the legislative process.
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47 sponsors
3 primary, 44 co-sponsors signed on.
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Bipartisan support
Sponsored across 3 parties (44 D · 2 I · 1 R) — cross-party backing.
Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.
Bill Text
What changed in the latest version
338 added · 337 removedPlain-language change summary
The updated version of House Bill 786 has made a notable change by increasing the tax credits for qualifying children across different income brackets. For example, families filing jointly at certain income levels will now receive $250 instead of $125 per qualifying child. This adjustment is significant as it aims to provide more financial support to families, helping to alleviate some of the economic pressures they face.
GENERAL ASSEMBLY OF NORTH CAROLINA H.B.SESSION 2025 H 1 HOUSE BILL 786 Short Title:
786 Apr 3, 2025 SESSION 2025 HOUSE PRINCIPAL CLERK H D HOUSE BILL DRH40426-MC-187 Short Title:
RepresentativeRepresentatives Pittman.Pittman, Ball, G.
Pierce, and Lofton (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Rules, Calendar, and Operations of the House April 7, 2025 A BILL TO BE ENTITLED AN ACT REDUCING PARENT COPAYMENTS FOR SUBSIDIZED CHILD CARE, REENACTING THE CHILD TAX CREDIT, RAISING THE STATE MINIMUM WAGE IN PHASES UP TO FIFTEEN DOLLARS PER HOUR, ALLOWING A HIGHER LOCAL MINIMUM WAGE, INCREASING THE INCOME ELIGIBILITY LIMIT FOR THE PROPERTY TAX HOMESTEAD CIRCUIT BREAKER, CREATING A HOMEBUYERS' ASSISTANCE PROGRAM WITH THE NORTH CAROLINA HOUSING FINANCE AGENCY FOR FIRST-TIME HOMEBUYERS WHO WORK AS PUBLIC SERVANTS, AND ENACTING THE NORTH CAROLINA PAID FAMILY LEAVE INSURANCE ACT TO HELP WORKING FAMILIES AND CREATING THE EMPLOYER GRANT FUND TO OFFSET COSTS INCURRED BY EMPLOYERS AND APPROPRIATING FUNDS FOR THAT PURPOSE.
A taxpayer is allowed a credit against the tax imposed bybythis this Part for each qualifying child of the taxpayer.
Filing Status AGI Credit Amount Married,*H786-v-1* filing jointly Up to $40,000 $125.00$250.00 *DRH40426-MC-187* General Assembly Of North Carolina Session 2025 Married, filing jointly Up to $40,000 $125.00$250.00 Over $40,000 Up to $100,000 $100.00$125.00 Over $100,000 0 56 Head of Household Up to $32,000 $125.00$250.00 Over $32,000 Up to $80,000 $100.00$125.00 Over $80,000 0 Single Up to $20,000 $125.00$250.00 Over $20,000 Up to $50,000 $100.00$125.00 Over $50,000 0 Married, filing separately Up to $20,000 $125.00$250.00 Over $20,000 Up to $50,000 $100.00$125.00 Over $50,000 0.
– A nonresident or part-year resident who claims the credit allowed by this section shallreducetheamount ofthecredit bymultiplyingbymultiplyingit itbythefraction bythefractioncalculatedundercalculatedunder G.S.
105-134.5(b) or (c), as appropriate.The credit allowed under this section may not exceed the amount of tax imposed by this Part for the taxable year reduced bybythe the sum of all credits allowed, except payments oftax madebymadebyoronbehalfofthe oronbehalfofthe taxpayer.G.S.
– If the credit allowed by this section exceeds the amount of tax imposedbythisPartforthetaxableyearreducedbythesumofallcreditsallowable,theSecretaryimposedbythisPartforthetaxable yearreducedbythe sumofallcreditsallowable,theSecretary must refund the excess to the taxpayer.
(3) Effective JanuaryJanuary1, 1, 2028, wages of at least thirteen dollars ($13.00) per hour.
Page 2 House Bill 786-First Edition General Assembly Of North Carolina Session 2025 (6) Effective January 1, 2031, and annually thereafter, the amount determined by the Commissioner of Labor under subsection (a1) of this section.
Page 2 DRH40426-MC-187 General Assembly Of North Carolina Session 2025 (a1) Beginning September 30, 2030, and on each September 30 thereafter, the CommissionerofLaborshallCommissionerof calculateanLaborshall calculate an adjusted minimum wageratewage rate indexedto thepercentage increase in the Consumer Price Index (All 29 Urban Consumers, U.S.
…." 9 INCOME ELIGIBILITY/PROPERTY TAX HOMESTEAD CIRCUIT BREAKER SECTION 4.1.(a) G.S.
– An individual employed by the State or a local government in this State as a sheriff, deputydeputysheriff, sheriff, police officer, or member of the State highway patrol.
House Bill 786-First Edition Page 3 General Assembly Of North Carolina Session 2025 (8) Veteran.
DRH40426-MC-187 Page 3 General Assembly Of North Carolina Session 2025 SECTION 5.1.(b) The Housing Finance Agency (Agency) shall establish a program operating under the Homeownership Assistance Fund, authorized under G.S.
The AgencyAgencymay may provide for mortgage insurance payment assistance at least monthly but for no longer than 60 months for any single first-time homebuyer.
A member of the Armed Forces, including a member of the National Guard or Reserves, who is (i) undergoing medical treatment, recuperation, or therapy, (ii) otherwise in outpatient status, or (iii) otherwise on the temporary disability retired list for a serious injuryinjuryor or illness that was incurred by the member in the line of duty on active duty in the Armed Forces or a serious injury or illness that existed before the beginning of the member's active duty and was aggravated by service in the line of duty on active duty in the Armed Forces;
or Page 4 House Bill 786-First Edition General Assembly Of North Carolina Session 2025 b.
A former member of the Armed Forces, including a former member of the National Guard or Reserves, who is undergoingundergoingmedical medical treatment, Page 4 DRH40426-MC-187 General Assembly Of North Carolina Session 2025 recuperation, ortherapyortherapyforaseriousinjuryorillness foraseriousinjuryorillness thatwas incurred by the member in the line of duty on active duty in the Armed Forces or a serious injury or illness that existed before the beginning of the member's active dutydutyand and was aggravated bybyservice service in the line of duty on active duty in the Armed Forces and manifested before or after the member was discharged or released from service.
– Leave based on a need arising out of a covered individual's family member's active duty service or notice of an impending call or order to active duty in the Armed Forces, including, but not limited to, providing for the care or other needs of the military member's child or other family member, making financial or legal arrangements for the military member, attending counseling, attending military events or ceremonies, spending time with the military member during a rest and recuperation leave House Bill 786-First Edition Page 5 General Assembly Of North Carolina Session 2025 or following return from deployment, or making arrangements following the death of the military member.
DRH40426-MC-187 Page 5 General Assembly Of North Carolina Session 2025 (13) Retaliatory personnel action.
(i) the portion of the covered individual's average weekly wage that is equal to or less than one hundred percent (100%) of the State average weekly wage shall be replaced at a rate of ninety percent (90%) and (ii) the portion of an employee's or self-employedPage individual's6 averageHouse weeklyBill wage786-First thatEdition is more than one Page 6 DRH40426-MC-187 General Assembly Of North Carolina Session 2025 self-employed individual's average weekly wage that is more than one hundred percent (100%) of the State average weekly wage shall be replaced at a rate of fifty percent (50%).
(4) For purposes of this section, a covered individual's average weeklyweeklywage wage shall be the average weekly wage during the 12 months preceding submission of the application (or the average weekly wage during the time the covered individual worked, if it was less than 12 months).
(b) Beginning on JanuaryJanuary1, 1, 2026, for each employee, an employer shall remit to the Paid Family and Medical Leave Fund (Fund), established under G.S.
and (5) The amount by which the contribution rate shall be adjusted to ensure that the Fund shall maintain or achieve an annualized amount of not less than one hundred forty percent (140%) of the previous fiscal year's expenditure for familyfamilyand and medical leave insurance benefits paid and for the administration of the family and medical leave insurance program.
DRH40426-MC-187House Bill 786-First Edition Page 7 General Assembly Of North Carolina Session 2025 (a) A covered individual shall be entitled, at the option of the covered individual, to take paid family and medical leave on an intermittent or reduced leave schedule in which all of the leaveauthorized underthis Chapteris not takensequentially.
FamilyFamilyand andmedicalmedical leaveinsurance benefits for intermittent or reduced leave schedules shall be prorated.
Page 8 DRH40426-MC-187House Bill 786-First Edition General Assembly Of North Carolina Session 2025 (e) The court in such an action shall, in addition to anyanyjudgment judgment awarded to the plaintiff, allow a reasonable attorney's fee, reasonable expert witness fees, and other costs of the action to be paid by the defendant.
(b) An employer, temporarytemporaryhelp help company, employment agency, employee organization, or other person shall not take retaliatory personnel action or otherwise discriminate against a person because he or she exercised rights protected under this Chapter.
or has testifiedoris abouttotestifyabouttotestifyorhas orhasassistedin assistedinanyinvestigation,hearing,anyinvestigation, orproceedinghearing, underorproceedingunder this Chapter, at any time, including during the period in which the person receives family and medical leave insurance benefits under this Chapter;
(d) Protections ofthis sectionshall applyapplyto to anyperson whomistakenly, but in goodfaith, alleges violations of this Chapter.
AnyAnyagreement agreementbyan byanindividualindividualto to waive his orher rights under this Chapter is void as against public policy.
An employer shall also provide written notice to an employee when the employee requests leave under this Chapter or when the employer acquires knowledge that an DRH40426-MC-187House Bill 786-First Edition Page 9 General Assembly Of North Carolina Session 2025 employee's leave may be for a qualifying reason under G.S.
Such notice shall include (i) the employee's right to family and medical leave insurance benefits under this Chapter and the terms under which it may be used, (ii) the amount of familyfamilyand and medical leave insurance benefits, (iii) the procedure for filing a claim for benefits, (iv) the right to job protection and benefits continuation under G.S.
(a) A covered individual is disqualified from familyfamilyand and medical leave insurance benefits for one year if the individual is determined by the Assistant Secretary to have willfully made a false statement or misrepresentation regarding a material fact or willfully failed to report a material fact to obtain benefits under this Chapter.
(b) If family and medical leave insurance benefits are paid erroneously or as a result of willful misrepresentation, or if a claim for familyfamilyand and medical leave insurance benefits is rejected after benefits are paid, the Division may seek repayment of benefits from the recipient.
As a condition of election, the self-employed person must agree to supply anyanyinformation information concerning income that the Division deems necessary.
Show all 47 changed lines (7 more)
By January 1, 2027, the Division shall start receivingreceivingclaims claims from andpayingandpayingfamilyandmedical family andmedical leaveinsurancebenefits to covered individuals.
Page 10 DRH40426-MC-187House Bill 786-First Edition General Assembly Of North Carolina Session 2025 (b) The Division shall establish reasonable procedures and forms for filing claims for benefits under this Chapter and shall specify what supporting documentation is necessary to support a claim for benefits, including any documentation required from a health care provider for proof of a serious health condition.
(d) The Division shall use information sharing and integration technologytechnologyto to facilitate the disclosure of relevant information or records, so long as an individual consents to the disclosure as required under State law.
Outreach information shall be available in English, Spanish, French, German, Vietnamese, Chinese, Arabic, Korean, Tagalog, Hindi, Gujarati, Russian, Hmong,andotherlanguages spokenbymorethanspoken bymorethan fivepercent (5%) of the State's population.
DRH40426-MC-187House Bill 786-First Edition Page 11 General Assembly Of North Carolina Session 2025 "§ 96A-20.
SECTION 6.1.(c) There is appropriated from the General Fund to the Department of Commerce, Employer Grant Fund, the sum of nineteen million dollars ($19,000,000) for the 2025-2026 fiscal year and the sum of thirtythirtymillion million dollars ($30,000,000) in the 2026-2027 fiscal year to offset employer costs of the Paid Family Medical Leave Act as enacted by this section.
Page 12 DRH40426-MC-187House Bill 786-First Edition
Show all 47 changed rows (7 more)
Compared against the N.C. General Statutes as published AI-generated reading aid — verify against the official bill.
The bill reenacts the child tax credit and raises the minimum wage in phases up to $15 per hour while allowing higher local minimum wages and creating a paid family leave insurance program.
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G.S. 105-153.10
Repealed by Session Laws 2015-241, s. 32.13(c), effective for taxable years beginning on or after January 1, 2018.→ Credit for children. (a) Credit. – A taxpayer who is allowed a federal child tax credit under section 24 of the Code for the taxable year is allowed a credit against the tax imposed by this Part for each dependent child for whom the taxpayer is allowed the federal credit. A taxpayer is allowed a credit against the tax imposed by this Part for each qualifying child of the taxpayer. A "qualifying child" is defined by section 152(c) of the Code. The amount of credit allowed under this section for the taxable year is equal to the amount listed in the table below based on the taxpayer's adjusted gross income, as calculated under the Code:This change reinstates the child tax credit that had previously been repealed.
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G.S. 95-25.3
wages of at least six dollars and fifteen cents ($6.15) per hour or the minimum wage set forth in paragraph 1 of section 6(a) of the Fair Labor Standards Act, 29 U.S.C. 206(a)(1), as that wage may change from time to time, whichever is higher, except as otherwise provided in this section.→ wages of at least six dollars and fifteen cents ($6.15) per hour or the minimum wage the amount set forth in paragraph 1 of section 6(a) of the Fair Labor Standards Act, 29 U.S.C. 206(a)(1), as that wage may change from time to time, whichever is higher, except as otherwise provided in this section.or the amount set forth below in this subsection, whichever is higher: (1) Effective January 1, 2026, wages of at least ten dollars ($10.00) per hour. (2) Effective January 1, 2027, wages of at least twelve dollars ($12.00) per hour. (3) Effective January 1, 2028, wages of at least thirteen dollars ($13.00) per hour. (4) Effective January 1, 2029, wages of at least fourteen dollars ($14.00) per hour. (5) Effective January 1, 2030, wages of at least fifteen dollars ($15.00) per hour.This change establishes a phased increase of the minimum wage to $15 per hour by 2030.
Action History
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Passed 1st Reading
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Ref To Com On Rules, Calendar, and Operations of the House
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Filed
Sponsors
- Brian Turner · Cosponsor
- Phil Rubin · Cosponsor
- James Roberson · Cosponsor
- II Robert T. Reives · Cosponsor
- III Amos L. Quick · Cosponsor
- Renée A. Price · Cosponsor
- Lindsey Prather · Cosponsor
- Rodney D. Pierce · Cosponsor
- Marcia Morey · Cosponsor
- Nasif Majeed · Cosponsor
- Jordan Lopez · Cosponsor
- Tim Longest · Cosponsor
- Carolyn G. Logan · Cosponsor
- Ya Liu · Cosponsor
- Abe Jones · Cosponsor
- Monika Johnson-Hostler · Cosponsor
- B. Ray Jeffers · Cosponsor
- Zack Hawkins · Cosponsor
- Pricey Harrison · Cosponsor
- Julia Greenfield · Cosponsor
- Aisha O. Dew · Cosponsor
- Allison A. Dahle · Cosponsor
- Carla D. Cunningham · Cosponsor
- Sarah Crawford · Cosponsor
- Mike Colvin · Cosponsor
- Bryan Cohn · Cosponsor
- Tracy Clark · Cosponsor
- Maria Cervania · Cosponsor
- Becky Carney · Cosponsor
- Deb Butler · Cosponsor
- Laura Budd · Cosponsor
- Allen Buansi · Cosponsor
- Terry M. Brown Jr. · Cosponsor
- Kanika Brown · Cosponsor
- Gloristine Brown · Cosponsor
- Mary Belk · Cosponsor
- Amber M. Baker · Cosponsor
- Vernetta Alston · Cosponsor
- Eric Ager · Cosponsor
- Brandon Lofton · Cosponsor
- Garland E. Pierce · Primary
- Cynthia Ball · Primary
- Dante Pittman · Primary
- Beth Helfrich · Cosponsor
- Neal Jackson · Cosponsor
- Julie von Haefen · Cosponsor
- Charles Smith · Cosponsor
Sponsorship breakdown
Export CSV (upgrade) →3 sponsors · 44 co-sponsors · 132 not signed on
Sponsors (3)
- Garland E. Pierce Democratic
- Cynthia Ball Democratic
- Dante Pittman Democratic
Co-sponsors (44)
- Brian Turner Democratic
- Phil Rubin Democratic
- James Roberson Democratic
- Robert T. Reives, II Democratic
- Amos L. Quick, III Democratic
- Renée A. Price Democratic
- Lindsey Prather Democratic
- Rodney D. Pierce Democratic
- Marcia Morey Democratic
- Nasif Majeed U
- Jordan Lopez Democratic
- Tim Longest Democratic
- Carolyn G. Logan Democratic
- Ya Liu Democratic
- Abe Jones Democratic
- Monika Johnson-Hostler Democratic
- B. Ray Jeffers Democratic
- Zack Hawkins Democratic
- Pricey Harrison Democratic
- Julia Greenfield Democratic
- Aisha O. Dew Democratic
- Allison A. Dahle Democratic
- Carla D. Cunningham U
- Sarah Crawford Democratic
- Mike Colvin Democratic
- Bryan Cohn Democratic
- Tracy Clark Democratic
- Maria Cervania Democratic
- Becky Carney Democratic
- Deb Butler Democratic
- Laura Budd Democratic
- Allen Buansi Democratic
- Terry M. Brown Jr. Democratic
- Kanika Brown Democratic
- Gloristine Brown Democratic
- Mary Belk Democratic
- Amber M. Baker Democratic
- Vernetta Alston Democratic
- Eric Ager Democratic
- Brandon Lofton Democratic
- Beth Helfrich Democratic
- Neal Jackson Republican
- Julie von Haefen Democratic
- Charles Smith Democratic
Not signed on (132)
132 members have not signed on to this bill.
Show all 132 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- Who sponsors HB 786?
- HB 786 is sponsored by Brian Turner (Democratic), Phil Rubin (Democratic), James Roberson (Democratic), Robert T. Reives, II (Democratic), Amos L. Quick, III (Democratic), Renée A. Price (Democratic), Lindsey Prather (Democratic), Rodney D. Pierce (Democratic), Marcia Morey (Democratic), Nasif Majeed (U), Jordan Lopez (Democratic), Tim Longest (Democratic), Carolyn G. Logan (Democratic), Ya Liu (Democratic), Abe Jones (Democratic), Monika Johnson-Hostler (Democratic), B. Ray Jeffers (Democratic), Zack Hawkins (Democratic), Pricey Harrison (Democratic), Julia Greenfield (Democratic), Aisha O. Dew (Democratic), Allison A. Dahle (Democratic), Carla D. Cunningham (U), Sarah Crawford (Democratic), Mike Colvin (Democratic), Bryan Cohn (Democratic), Tracy Clark (Democratic), Maria Cervania (Democratic), Becky Carney (Democratic), Deb Butler (Democratic), Laura Budd (Democratic), Allen Buansi (Democratic), Terry M. Brown Jr. (Democratic), Kanika Brown (Democratic), Gloristine Brown (Democratic), Mary Belk (Democratic), Amber M. Baker (Democratic), Vernetta Alston (Democratic), Eric Ager (Democratic), Brandon Lofton (Democratic), Garland E. Pierce (Democratic), Cynthia Ball (Democratic), Dante Pittman (Democratic), Beth Helfrich (Democratic), Neal Jackson (Republican), Julie von Haefen (Democratic), and Charles Smith (Democratic).
- What is the current status of HB 786?
- This bill is in committee in the House. Introduced April 03, 2025. It must pass committee before a floor vote.
- Where can I track HB 786?
- Track HB 786 free on One Click Politics — get push/email alerts when it moves.
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