Kids Over Corporations Act.

This bill, titled the Kids Over Corporations Act, would stop the scheduled elimination of the corporate income tax in North Carolina and instead set a permanent rate of five percent. It directly affects C corporations operating in the state by requiring them to pay this tax, while S corporations remain exempt from the levy. The law includes a temporary phase-in schedule where the tax rate starts at 2.25% in 2025 and gradually decreases to zero after 2029, though the bill's title suggests a permanent five percent rate. The legislation applies to taxable years beginning on or after January 1, 2026, and aims to ensure corporations contribute to public services funded by state revenue.