This bill reenacts North Carolina's state Earned Income Tax Credit (EITC) by updating the relevant law to apply for future tax years. It allows eligible low-to-moderate income individuals to receive a credit equal to 20% of their federal EITC amount, with the specific percentage varying based on the tax year. The credit is refundable, meaning taxpayers can receive a cash payment even if it exceeds their state tax liability, and the legislation includes a provision to automatically repeal the credit starting in 2014, which is overridden by the bill's effective date of January 1, 2026.
This North Carolina bill aims to increase access to quantum computing education by funding STEM programs in public schools, particularly those near military bases. It allocates $2.6 million to hire specialized teachers and create hands-on learning opportunities for students, while also establishing a $200,000 grant program for universities to partner with high schools on research projects. Additionally, the legislation creates an income tax credit for businesses that participate in these educational initiatives, though the specific details of the tax credit are not fully shown in the provided text.
This bill creates two main programs to support public servants in North Carolina. First, it establishes a Homebuyers' Assistance Program for first-time homebuyers who work as teachers, firefighters, police officers, or medical personnel, providing up to $25,000 or 10% of the purchase price for down payments and mortgage insurance. Second, it allows unpaid volunteer firefighters and rescue squad members to claim a state income tax credit of up to $5,000 to cover unreimbursed business expenses related to their rescue work. The down payment assistance program is funded with $200 million in recurring state money and will begin on July 1, 2026, while the tax credit applies to taxable years starting on or after January 1, 2026.
HB 1082, titled the Tax Relief for Working Families Act, would reinstate North Carolina's state Earned Income Tax Credit for families with children. The bill establishes a refundable tax credit equal to 5% of the federal credit amount claimed by eligible taxpayers, with a specific provision for the 2013 tax year that sets the rate at 4.5%. If the calculated credit exceeds the taxpayer's state tax liability, the difference is refunded to them. Although the legislation includes a sunset clause that would repeal the credit after the 2013 tax year, the act is scheduled to take effect for taxable years beginning on or after January 1, 2026.
This bill creates a tax credit for North Carolina businesses that pay wages to employees to cover their health insurance premiums. To qualify, a business must employ individuals who work at least 35 hours per week and are subject to state tax withholding. Each eligible employee can generate up to a $400 tax credit for the business, but the total credits available in any given year are capped at $5 million. Applications for this credit will be processed on a first-come, first-served basis, and the state will track and report the number of applications and approvals by county. The provisions of this act will take effect for tax years beginning on or after January 1, 2026.
HB 1077 creates a grant program for North Carolina community colleges to train students as tax preparers for the Volunteer Income Tax Assistance (VITA) program, allowing them to help low-income individuals, people with disabilities, and limited English speakers file their taxes for free. The bill provides $1.38 million in initial funding and $610,000 in recurring funds to support curriculum development, faculty incentives, and paid work-based learning opportunities where students earn hourly wages during tax season. Additionally, the legislation allocates $840,000 to the United Way of North Carolina to expand its VITA services by increasing the number of locations, hiring dedicated staff, and improving outreach and financial education resources. These measures aim to help an estimated 225,000 eligible North Carolina filers claim the Federal Earned Income Tax Credit, which has an average value of about $2,894 per person. The act takes effect on July 1, 2026, and includes provisions for training and technical assistance to ensure the program runs effectively.
This bill reenacts North Carolina's state Earned Income Tax Credit (EITC) for taxpayers filing returns for the year 2026 and beyond. It allows eligible individuals who claim the federal EITC to receive an additional state credit equal to 5% of their federal credit amount, with a special 4.5% rate applied to 2013 returns. The credit is refundable, meaning taxpayers can receive the money even if it exceeds the taxes they owe, and it will automatically expire at the end of 2026.
This North Carolina legislation reinstates a state tax credit for individuals who claim the federal Earned Income Tax Credit. Eligible taxpayers would receive a credit equal to five percent of their federal EITC amount, which is refundable if it exceeds their state tax liability. The bill takes effect for tax years beginning in 2026 and includes a sunset provision that repeals the credit for tax years starting on or after January 1, 2029.
SB 582, the Wellness Break Act, establishes a paid sabbatical leave program for North Carolina public employees (state, county, city, school, and community college workers) and provides tax incentives for private sector employers. Public employees with three or more years in the same role can take 4-6 weeks of paid leave (70% of salary) for health, wellness, skill-building, or personal enrichment, provided they return to their position for one year. Private businesses offering similar leave qualify for a tax credit of up to $5,000 per employee to offset costs. The bill requires public employers to report on program usage and outcomes, and the NCWorks Commission will develop model policies and resources to support private sector adoption.
SB 563, "The Michael Jordans of Tomorrow Act," allows North Carolina's public universities (specifically UNC system institutions) to directly compensate student-athletes for participation in intercollegiate sports, up to $20.5 million annually from athletic department revenue. It also creates a 50% tax credit for businesses that pay student-athletes for name/image/likeness (NIL) agreements, capped at $500,000 per business yearly. Universities must report all direct compensation payments to state committees annually and collaborate with the state to ensure compliance with federal and state laws. The bill aims to enhance North Carolina's competitiveness in recruiting athletes by modernizing NIL policies and providing state-level incentives.
