Plain English Summary
This bill allows North Carolina taxpayers to deduct overtime compensation, tips, and up to $2,500 in annual bonus pay from their state income tax. The deductions apply to income that would normally be taxed, effectively reducing the amount of state income tax owed by workers who receive these forms of compensation.
Arguments in Favor
Supporters argue this bill helps working people keep more of their earnings by reducing taxes on compensation tied to extra effort or employer recognition. They contend that overtime, tips, and bonuses are forms of work-based income that deserve special consideration, and that this deduction provides meaningful relief for service workers, hourly employees, and others who rely on these income sources.
Arguments Against
Opponents may argue this bill reduces state tax revenue that funds schools, roads, and other public services, requiring either budget cuts or other taxes to compensate. They may also question whether the benefit is fairly distributed, since not all workers receive tips, overtime, or bonuses, and whether a $2,500 bonus cap creates arbitrary distinctions between taxpayers.
AI-generated analysis based on bill text. Always verify with official sources at ncleg.gov. This is not legal or political advice.
Sponsors
Primary Sponsor
Representative · District 76
Primary Sponsor
Representative · District 10
Primary Sponsor
Representative · District 37
Primary Sponsor
Representative · District 25
Cosponsors (43)
Representative · District 105
Representative · District 17
Representative · District 4
Representative · District 110
Representative · District 69
Representative · District 55
Representative · District 64
Representative · District 63
Representative · District 116
Representative · District 91
Representative · District 119
Representative · District 46
Representative · District 81
Representative · District 28
Representative · District 26
Representative · District 1
Representative · District 12
Representative · District 79
Representative · District 84
Representative · District 113
Representative · District 120
Representative · District 43
Representative · District 68
Representative · District 74
Representative · District 19
Representative · District 52
Representative · District 65
Representative · District 109
Representative · District 117
Representative · District 70
Representative · District 21
Representative · District 47
Representative · District 9
Representative · District 97
Representative · District 94
Representative · District 73
Representative · District 32
Representative · District 82
Representative · District 83
Representative · District 67
Representative · District 35
Representative · District 111
Representative · District 95