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Primary Sponsor

Last Action

Re-ref Com On Finance2026-05-12

Vote Breakdown

No floor votes recorded.

Plain Language Summary

This bill allows North Carolina taxpayers to deduct up to $5,000 per year in out-of-pocket prescription drug expenses from their state income taxes, starting in 2026. The deduction covers unreimbursed medication costs and pharmacy co-pays, but excludes amounts already covered by tax-advantaged accounts like Health Savings Accounts or Flexible Spending Accounts.

Arguments in Favor

• •Supporters argue this deduction helps North Carolinians struggling with high prescription drug costs by reducing their state tax burden.
• •They contend it provides meaningful relief for households paying significant out-of-pocket medication expenses, particularly seniors and people with chronic illnesses, while encouraging residents to maintain necessary prescriptions without financial hardship.

Arguments Against

• •Opponents may argue the deduction reduces state tax revenue and primarily benefits higher-income taxpayers who have more tax liability to offset.
• •They contend the $5,000 cap may not help lower-income individuals who pay little or no state income tax, and question whether a tax deduction is the most effective way to address prescription drug affordability compared to other policy approaches.