Compare Bills

Primary Sponsor

Last Action

Ref To Com On Rules and Operations of the Senate2026-04-30

Vote Breakdown

No floor votes recorded.

Plain Language Summary

This bill restores North Carolina's state Earned Income Tax Credit, which expired in 2014. The credit would provide eligible low- to moderate-income working individuals a tax refund equal to 5% of the federal Earned Income Tax Credit they receive, with the credit becoming refundable starting in 2026.

Arguments in Favor

• •Supporters argue this bill helps working families with modest incomes by putting more money back in their pockets through tax refunds.
• •They contend the credit encourages employment, reduces poverty, and provides economic stimulus since low-income workers typically spend refunded money in their local communities.
• •Proponents note that neighboring states and the federal government offer similar credits to support working families.

Arguments Against

• •Opponents may argue the credit reduces state tax revenue at a time when the state has other funding priorities.
• •They contend that the 5% state credit represents a relatively small benefit compared to the federal credit and question whether it is the most cost-effective way to assist low-income workers.
• •Some may also be concerned about the fiscal impact of making the credit refundable, which means the state pays out money beyond what taxpayers owe in state income taxes.