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H387 • 2025

Eliminate Tax on Gov't Retirees.

Eliminate Tax on Gov't Retirees.

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Schietzelt, Huneycutt, Harrison, Ward, White
Last action
2025-03-13
Official status
Ref to the Com on State and Local Government, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Eliminate Tax on Gov't Retirees.

Eliminate Tax on Gov't Retirees.

What This Bill Does

  • Eliminate Tax on Gov't Retirees.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-03-13 House

    Ref to the Com on State and Local Government, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House

  2. 2025-03-13 House

    Passed 1st Reading

  3. 2025-03-12 House

    Filed

Official Summary Text

Eliminate Tax on Gov't Retirees.

Current Bill Text

Read the full stored bill text 
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 387

Short Title: Eliminate Tax on Gov't Retirees. (Public)
Sponsors: Representatives Schietzelt and Huneycutt (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: State and Local Government, if favorable, Finance, if favorable, Rules, Calendar,
and Operations of the House
March 13, 2025
*H387-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO MAKE INCOM E RECEIVED FROM A NO RTH CAROLINA STATE O R 2
LOCAL GOVERNMENT RET IREMENT PLAN, OR A F EDERAL GOVERNMENT 3
RETIREMENT PLAN, EXEMPT FROM INCOME TAX. 4
The General Assembly of North Carolina enacts: 5
SECTION 1. G.S. 105-153.5(b) reads as rewritten: 6
"(b) Other Deductions. – In calculating North Carolina taxable income, a taxpayer may 7
deduct from the taxpayer's adjusted gross income any of the following items that are included in 8
the taxpayer's adjusted gross income: 9
… 10
(5) The amount received during the taxable year from one or more State, local, or 11
federal government retirement plans to the extent the amount is exempt from 12
tax under this Part pursuant to a court order in settlement of any of the 13
following cases:of the following: 14
a. Bailey v. State, 92 cvs 10221, 94 cvs 6904, 95 cvs 6625, 95 cvs 8230. 15
b. Emory v. State, 98 CVS 0738. 16
c. Patton v. State, 95 CVS 04346. 17
d. A North Carolina State government retirement plan. 18
e. A North Carolina local government retirement plan. 19
f. A federal government retirement plan not included within subdivision 20
(5a) of this subsection. 21
…." 22
SECTION 2. This act is effective for taxable years beginning on or after January 1, 23
2026. 24