Caring for Our Caregivers Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 712

Short Title: Caring for Our Caregivers Act. (Public)
Sponsors: Senators Chitlik and Bradley (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S712-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ENACT THE CARING FOR OUR CAREGIVERS ACT. 2
The General Assembly of North Carolina enacts: 3
4
INCOME TAX EXEMPTION 5
SECTION 1.(a) G.S. 105-153.7 reads as rewritten: 6
"§ 105-153.7. Individual income tax imposed. 7
(a) Tax. – A tax is imposed for each taxable year on the North Carolina taxable income 8
of every individual. The tax shall be levied, collected, and paid annually. Except as otherwise 9
provided in subsection (a1) of this section, the tax is a percentage of the taxpayer's North Carolina 10
taxable income computed as follows: shall be computed at the following percentages of the 11
taxpayer's income for taxable year 2025 and computed at the following p ercentage reduced by 12
twenty-six hundredths percent (0.26%) for taxable years after 2025: 13
Taxable Years Beginning Tax 14
In 2022 4.99% 15
In 2023 4.75% 16
In 2024 4.5% 17
In 2025 4.25% 18
After 2025 3.99%. 19
(1) For married individuals who file a joint return under G.S. 105-153.8 and for 20
surviving spouses, as defined in section 2(a) of the Code: 21
Over Up To Rate 22
-0- 1,000,000 4.25% 23
$1,000,000 NA 5.05% 24
(2) For heads of households, as defined in section 2(b) of the Code: 25
Over Up To Rate 26
-0- $800,000 4.25% 27
$800,000 NA 5.05% 28
(3) For unmarried individuals other than surviving spouses and heads of 29
households: 30
Over Up To Rate 31
-0- 600,000 4.25% 32
$600,000 NA 5.05% 33
(4) For married individuals who do not file a joint return under G.S. 105-153.8: 34
Over Up To Rate 35
-0- 500,000 4.25% 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 712-First Edition
$500,000 NA 5.05% 1
(a1) Rate Reduction Trigger. – Notwithstanding the tax rates set out in subsection (a) of 2
this section, if total General Fund revenue in a fiscal year set out below exceeds the trigger 3
amount indicated for that fiscal year, then the applicable tax rate for the indicated and subsequent 4
tax years shall be equal to the greater of (i) the prior taxable year's rate decreased by one -half 5
percentage point (0.50%) or (ii) two and forty-nine hundredths percent (2.49%). For purposes of 6
this subsection, total General Fund revenue is the amount stat ed in the final accounting of total 7
General Fund Reverting Net Tax and Non -Tax Revenues for the fiscal year, as reported by the 8
Office of State Controller in August following the end of the fiscal year. 9
Fiscal Year Trigger Amount Taxable Year Beginning 10
FY 2025-2026 $33,042,000,000 In 2027 11
FY 2026-2027 $34,100,000,000 In 2028 12
FY 2027-2028 $34,760,000,000 In 2029 13
FY 2028-2029 $35,750,000,000 In 2030 14
FY 2029-2030 $36,510,000,000 In 2031 15
FY 2030-2031 $38,000,000,000 In 2032 16
FY 2031-2032 $38,500,000,000 In 2033 17
FY 2032-2033 $39,000,000,000 In 2034 18
(b) Withholding Tables. – The Secretary may provide tables that compute the amount of 19
tax due for a taxable year under this Part. The amounts of the tax determined under the tables 20
shall be computed on the basis of the rates prescribed by subsection (a) of this section. The tables 21
do not apply to an individual who files a return under section 443(a)(1) of the Code for a period 22
of less than 12 months due to a change in the individual's annual accounting period or to an estate 23
or trust." 24
SECTION 1.(b) G.S. 105-153.5(b) is amended by adding a new subdivision to read: 25
"(6a) Income earned for work performed as one of the following: 26
a. Firefighter. 27
b. Emergency medical services personnel, including the following: 28
1. Emergency medical responder. 29
2. Paramedic. 30
3. Rescue squad member. 31
c. Emergency management worker. 32
d. 911 call center worker. 33
e. Sworn law enforcement officer with the power of arrest. 34
f. Child care worker. 35
g. Public school unit employee. 36
h. Probation or parole officer. 37
i. Corrections officer." 38
SECTION 1.(c) This section is effective for taxable years beginning on or after 39
January 1, 2025. 40
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BENEFITS FOR CAREGIVER WORKERS 42
SECTION 2.(a) For the purposes of this section, a qualifying caregiver worker is 43
any individual who meet both of the following requirements: 44
(1) Has an annual household income that does not exceed one hundred 45
twenty-five thousand dollars ($125,000). 46
(2) Is employed in the State at least 30 hours a week as one of the following: 47
a. Firefighter. 48
b. Emergency medical services personnel, including the following: 49
1. Emergency medical responder. 50
2. Paramedic. 51
General Assembly Of North Carolina Session 2025
Senate Bill 712-First Edition Page 3
3. Rescue squad member. 1
c. Emergency management worker. 2
d. 911 call center worker. 3
e. Sworn law enforcement officer with the power of arrest. 4
f. Child care worker. 5
g. Public school unit employee. 6
h. Probation or parole officer. 7
i. Corrections officer. 8
SECTION 2.(b) There is appropriated from the General Fund to the Department of 9
Health and Human Services, Division of Child Development and Early Education, the sum of 10
one hundred sixty-five million dollars ($165,000,000) recurring for each year of the 2025 -2026 11
fiscal biennium to provide subsidized child care servic es to a family that includes an individual 12
employed as a qualifying caregiver worker. The Division of Child Development and Early 13
Education shall give priority to child care workers in award of these subsidies. 14
SECTION 2.(c) This section becomes effective July 1, 2025. 15
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EFFECTIVE DATE 17
SECTION 3. Except as otherwise provided herein, this act is effective when it 18
becomes law. 19