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S942 • 2025
Reenact EITC.
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.
Reenact EITC.
Ref To Com On Rules and Operations of the Senate
Passed 1st Reading
Filed
Reenact EITC.
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 S 1 SENATE BILL 942 Short Title: Reenact EITC. (Public) Sponsors: Senators Chitlik, Bradley, and Smith (Primary Sponsors). Referred to: Rules and Operations of the Senate April 30, 2026 *S942-v-1* A BILL TO BE ENTITLED 1 AN ACT TO REENACT THE EARNED INCOME TAX CREDIT. 2 The General Assembly of North Carolina enacts: 3 SECTION 1. G.S. 105-151.31 is reenacted as it existed immediately before its 4 expiration, is recodified as G.S. 105-153.12, and reads as rewritten: 5 "§ 105-153.12. Earned income tax credit. 6 (a) Credit. – An individual who claims for the taxable year an earned income tax credit 7 under section 32 of the Code is allowed a credit against the tax imposed by this Part equal to a 8 percentage twenty percent (20%) of the amount of credit the individual qualified for under section 9 32 of the Code. A nonresident or part-year resident who claims the credit allowed by this section 10 must reduce the amount of the credit by multiplying it by the fraction calcul ated under 11 G.S. 105-153.4(b) or (c), as appropriate. The percentage is as follows: 12 (1) For taxable year 2013, four and one-half percent (4.5%). 13 (2) For all other taxable years, five percent (5%). 14 (b) Credit Refundable. – If the credit allowed by this section exceeds the amount of tax 15 imposed by this Part for the taxable year reduced by the sum of all credits allowable, the Secretary 16 must refund the excess to the taxpayer. The refundable excess is governed by the provisions 17 governing a refund of an over payment by the taxpayer of the tax imposed in this Part. Section 18 3507 of the Code, Advance Payment of Earned Income Credit, does not apply to the credit 19 allowed by this section. In computing the amount of tax against which multiple credits are 20 allowed, nonrefundable credits are subtracted before refundable credits. 21 (c) Sunset. – This section is repealed effective for taxable years beginning on or after 22 January 1, 2014." 23 SECTION 2. This act is effective for taxable years beginning on or after January 1, 24 2026. 25