S983 • 2025

TIPs Tax Deduction.

Taxes

Passed Legislature

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

Sponsor: Jones, Johnson, Chitlik, Adcock
Last action: 2026-05-04
Official status: Ref To Com On Rules and Operations of the Senate
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.

TIPs Tax Deduction.

What This Bill Does

TIPs Tax Deduction.

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

2026-05-04 Senate
Ref To Com On Rules and Operations of the Senate
2026-05-04 Senate
Passed 1st Reading
2026-04-30 Senate
Filed

Official Summary Text

TIPs Tax Deduction.

Current Bill Text

Read the full stored bill text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 983

Short Title: TIPs Tax Deduction. (Public)
Sponsors: Senators Jones, Johnson, and Chitlik (Primary Sponsors).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S983-v-1*
A BILL TO BE ENTITLED 1
AN ACT ALLOWING AN INCOME TAX DEDUCTION FOR TIPS. 2
The General Assembly of North Carolina enacts: 3
SECTION 1. G.S. 105-153.5(b) reads as rewritten: 4
"(b) Other Deductions. – In calculating North Carolina taxable income, a taxpayer may 5
deduct from the taxpayer's adjusted gross income any of the following items that are included in 6
the taxpayer's adjusted gross income: 7
… 8
(17) Any amount received as tips that are required to be reported to the taxpayer's 9
employer pursuant to section 6053(a) of the Code." 10
SECTION 2. This act is effective for taxable years beginning on or after January 1, 11
2026. 12