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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 repeals North Carolina's scheduled phase-out of the corporate income tax and sets a permanent corporate income tax rate of 5% instead of allowing it to reach 0%. Currently, the state reduces the corporate tax rate each year, scheduled to eliminate it entirely after 2029. This bill stops that reduction and locks in a 5% rate.

Arguments in Favor

• •Supporters argue this bill protects funding for public education, workforce development, and infrastructure that corporations rely on.
• •They contend that eliminating the corporate income tax would shift the tax burden onto individuals and families, reducing the state's ability to invest in services that benefit the economy.
• •Proponents note that North Carolina's corporate tax rate would still be competitive compared to neighboring states.

Arguments Against

• •Opponents argue that maintaining a 5% corporate income tax makes North Carolina less competitive for business recruitment and retention compared to states with lower or no corporate taxes.
• •They contend that corporations may relocate or avoid investing in the state due to higher taxes, potentially reducing job growth and economic development.
• •Critics also argue that the tax burden on corporations should be reduced to stimulate business growth and that individuals should not bear disproportionate responsibility for public funding.