How SB 304 changes current law

Compared against the N.C. General Statutes as published AI-generated reading aid — verify against the official bill.

The bill reenacts the Earned Income Tax Credit previously repealed and recodifies it under a new section.

• N.C.G.S. § 105-151.31

  § 105-151.31: Repealed pursuant to former subsection (c) of this section, effective for taxable years beginning on or after January 1, 2014. → § 105-153.12. Earned income tax credit. (a) Credit. – An individual who claims for the taxable year an earned income tax credit under section 32 of the Code is allowed a credit against the tax imposed by this Part equal to a percentage ten percent (10%) of the amount of credit the individual qualified for under section 32 of the Code. A nonresident or part-year resident who claims the credit allowed by this section must reduce the amount of the credit by multiplying it by the fraction calculated under G.S. 105-153.4(b) or (c), as appropriate. The percentage is as follows: (1) For taxable year 2013, four and one-half percent (4.5%). (2) For all other taxable years, five percent (5%). (b) Credit Refundable. – If the credit allowed by this section exceeds the amount of tax imposedbythisPartforthetaxable yearreducedbythesumofallcreditsallowable,theSecretary must refund the excess to the taxpayer. The refundable excess is governed by the provisions governing a refund of an overpayment by the taxpayer of the tax imposed in this Part. Section 3507 of the Code, Advance Payment of Earned Income Credit, does not apply to the credit allowed by this section. In computing the amount of tax against which multiple credits are allowed, nonrefundable credits are subtracted before refundable credits. (c) Sunset. – This section is repealed effective for taxable years beginning on or after January 1, 2014.

  This change reenacts the Earned Income Tax Credit, allowing eligible individuals to receive a state tax credit based on their federal earned income tax credit.

• This act is effective for taxable years beginning on or after January 1, 2025.

  This specifies the effective date of the reenacted Earned Income Tax Credit.