Kids Over Corporations Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 943

Short Title: Kids Over Corporations Act. (Public)
Sponsors: Senators Chitlik, Murdock, and Smith (Primary Sponsors).
Referred to: Rules and Operations of the Senate
April 30, 2026
*S943-v-1*
A BILL TO BE ENTITLED 1
AN ACT REPEALING THE SCHEDULED PHASEOUT OF THE CORPORATE INC OME 2
TAX AND SETTING THE CORPORATE INCOME TAX RATE AT FIVE PERCENT. 3
Whereas, North Carolina law currently phases out the corporate income tax entirely, 4
reducing the rate to zero in future years; and 5
Whereas, eliminating the corporate income tax would significantly reduce the State's 6
long-term revenue capacity and shift the responsibility for funding public services onto 7
individuals and families; and 8
Whereas, North Carolina's current corporate income tax rate is already significantly 9
lower than that of neighboring states; and 10
Whereas, a balanced tax system requires that corporations benefiting from North 11
Carolina's workforce, infrastructure, and public systems contribute to their maintenance; and 12
Whereas, sustained investment in public education and workforce development is 13
essential to the State's economic competitiveness; Now, therefore, 14
The General Assembly of North Carolina enacts: 15
SECTION 1. G.S. 105-130.3 reads as rewritten: 16
"§ 105-130.3. Corporations. 17
A tax is imposed on the State net income of every C Corporation doing business in this State. 18
State at the rate of five percent (5%). An S Corporation is not subject to the tax levied in this 19
section. The tax is a percentage of the taxpayer's State net income computed as follows: 20
Taxable Years Beginning Tax 21
In 2025 2.25% 22
In 2026 2% 23
In 2028 1% 24
After 2029 0%." 25
SECTION 2. This act is effective for taxable years beginning on or after January 1, 26
2026. 27