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Primary Sponsor

Last Action

Ref To Com On Rules and Operations of the Senate2026-04-22

Vote Breakdown

No floor votes recorded.

Plain Language Summary

This bill allows small businesses in North Carolina (those with annual gross receipts under $10 million) to deduct a portion of revenue from state income taxes if they deposit that money into a designated capital improvement account for property upgrades. The deduction is tiered: 5% of income up to $1 million, 2% between $1-2 million, and 1% between $2-3 million, with unused funds being added back to taxable income.

Arguments in Favor

• •Supporters argue this bill encourages small businesses to invest in infrastructure, equipment, and property improvements by reducing their tax burden, which can lead to business growth and job creation.
• •They contend that allowing businesses to reinvest profits in capital improvements strengthens the economy and makes North Carolina more competitive for small business development.

Arguments Against

• •Opponents may argue this bill reduces state tax revenue needed for public services and education, potentially shifting the tax burden to other taxpayers.
• •They may also question whether the tax incentive is necessary to encourage capital investment, or whether the tiered deduction structure adequately targets the intended beneficiaries.