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Primary Sponsor

Last Action

Ref To Com On Rules, Calendar, and Operations of the House2025-02-25

Vote Breakdown

No floor votes recorded.

Plain Language Summary

This bill restores North Carolina's Earned Income Tax Credit (EITC), which expired in 2014. The credit would allow working families to receive a state tax credit equal to 20% of the federal EITC they qualify for, with excess credits refunded to taxpayers, effective for tax years beginning January 1, 2025.

Arguments in Favor

• •Supporters argue this bill helps working families afford basic necessities like food, housing, and childcare during a time of rising costs.
• •They point to research showing the EITC improves financial security and self-sufficiency, and note that the credit directly benefits low-to-moderate income families with children who are already working but earning modest incomes.

Arguments Against

• •Opponents may argue that reinstating the credit creates new state spending or reduces tax revenue at a time when the state budget has other priorities.
• •They might also question whether the 20% credit level is the most efficient use of state resources, or whether the funds could better address cost-of-living challenges through other means such as broader tax cuts or targeted assistance programs.