Tax Relief for Working Families Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 1082

Short Title: Tax Relief for Working Families Act. (Public)
Sponsors: Representatives Longest, Pittman, Prather, and Buansi (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
April 30, 2026
*H1082-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO PROVIDE TAX RELIEF FOR WORKING FAMILIES BY REENACTING THE 2
EARNED INCOME TAX CREDIT. 3
Whereas, North Carolina families face unprecedented challenges resulting from rising 4
costs; and 5
Whereas, studies have shown that the earned income tax credit results in working 6
families having additional funds for health and educational expenses; and 7
Whereas, the earned income tax credit can help provide greater financial security and 8
self-sufficiency to working families with children; and 9
Whereas, the earned income tax credit would help working families across the State 10
during a time of rising costs for housing, child care, and basic essentials of life, including putting 11
food on the table; Now, therefore, 12
The General Assembly of North Carolina enacts: 13
SECTION 1. G.S. 105-151.31 is reenacted as it existed immediately before its 14
expiration, is recodified as G.S. 105-153.12, and reads as rewritten: 15
"§ 105-153.12. Earned income tax credit. 16
(a) Credit. – An individual who claims for the taxable year an earned income tax credit 17
under section 32 of the Code is allowed a credit against the tax imposed by this Part equal to a 18
percentage twenty percent (20%) of the amount of credit the individual qualified for under section 19
32 of the Code. A nonresident or part-year resident who claims the credit allowed by this section 20
must reduce the amount of the credit by multiplying it by the fraction calculated under 21
G.S. 105-134.5(b) or (c), G.S. 105-153.4(b) or (c), as appropriate. The percentage is as follows: 22
(1) For taxable year 2013, four and one-half percent (4.5%). 23
(2) For all other taxable years, five percent (5%). 24
(b) Credit Refundable. – If the credit allowed by this section exceeds the amount of tax 25
imposed by this Part for the taxable year reduced by the sum of all credits allowable, the Secretary 26
must refund the excess to the taxpayer. The refundable excess is gover ned by the provisions 27
governing a refund of an overpayment by the taxpayer of the tax imposed in this Part. Section 28
3507 of the Code, Advance Payment of Earned Income Credit, does not apply to the credit 29
allowed by this section. In computing the amount of tax against which multiple credits are 30
allowed, nonrefundable credits are subtracted before refundable credits. 31
(c) Sunset. – This section is repealed effective for taxable years beginning on or after 32
January 1, 2014." 33
SECTION 2. This act is effective for taxable years beginning on or after January 1, 34
2026. 35