GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 316
Short Title: Child Care Act. (Public)
Sponsors: Representatives Logan, G. Brown, Lopez, and G. Pierce (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
March 10, 2025
*H316 -v-1*
A BILL TO BE ENTITLED 1
AN ACT TO REENACT TH E NORTH CAROLINA CHI LD TAX CREDIT, TO EXPAND 2
THE NORTH CAROLINA P REKINDERGARTEN (NC P RE-K) PROGRAM AND 3
INCREASE CARE SUBSIDY BY APPROPRIATING FUNDS FOR THOSE PURPOSES, 4
TO PROVIDE LUNCH IN PUBLIC SCHOOLS AT NO COST TO STUDENTS 5
THROUGH AN ALLOCATIO N BASED ON SCHOOL FO OD AUTHORITY 6
EVALUATIONS, TO APPROPRIATE FUNDS FOR PUBLIC CHILD CARE PROVIDED 7
BY COMMUNITY COLLEGE S, AND TO REQUIRE A REPORT ON THE FEASIBILITY 8
AND ADVISABILITY OF A HIGH SCHOOL CHILD CARE APPRENTICESHIP 9
PROGRAM. 10
The General Assembly of North Carolina enacts: 11
12
PART I. NC CHILD TAX CREDIT 13
SECTION 1.1. G.S. 105-151.11 is reenacted as it existed immediately before its 14
expiration, is recodified as G.S. 105-153.12, and reads as rewritten: 15
"§ 105-153.12. Credit for child care and certain employment-related expenses. 16
(a) Credit. – A person who is allowed a credit against federal income tax for a percentage 17
of employment-related expenses under section 21 of the Code shall be allowed as a credit against 18
the tax imposed by this Part an amount equal to the applicable percentage of the 19
employment-related expenses as defined in section 21(b)(2) of the Code. In order to claim the 20
credit allowed by this section, the taxpayer must provide with the tax return the information 21
required by the Secretary. 22
(a1) Applicable Percentage. – For employment-related expenses that are incurred only 23
with respect to one or more dependents who are seven 18 years old or older up to 25 years old 24
and are not physically or mentally incapable of caring for themselves, the applicable percentage 25
is the appropriate percentage in the column labeled "Percentage A" in the table below, based on 26
the taxpayer's adjusted gross income determined under the Code. For employment-related 27
expenses that are incurred only with respect to one or more dependents who are 12 years old up 28
to 18 years old and are not physically or mentally incapable of caring for themselves, the 29
applicable percentage is the appropriate percentage in the column labeled "Percentage B" in the 30
table below, based on the taxpayer's adjusted gross income determined under the Code. For 31
employment-related expenses that are incurred only with respect to one or more dependents who 32
are 6 years old up to 12 years old and are not physically or mentally incapable of caring for 33
themselves, the applicable percentage is the appropriate percentage in the column labeled 34
"Percentage C" in the table below, based on the taxpayer's adjusted gross income determined 35 General Assembly Of North Carolina Session 2025
Page 2 House Bill 316-First Edition
under the Code. For employment-related expenses with respect to any other qualifying 1
individual, the applicable percentage is the appropriate percentage in the column labeled 2
"Percentage B" D" in the table below, based on the taxpayer's adjusted gross income determined 3
under the Code. 4
Filing Status Adjusted Gross Percentage A Percentage B Percentage C Percentage D 5
Income 6
7
Head of Up to $20,000 9%7% 13%9% 11% 13% 8
Household 9
Over $20,000 10
up to $32,000 8%6.3% 11.5%8% 9.8% 11.5% 11
12
Over $32,000 7%5.5% 10%7% 8.5% 10% 13
14
Surviving 15
Spouse or 16
Joint Return Up to $25,000 9%7% 13%9% 11% 13% 17
18
Over $25,000 19
up to $40,000 8%6.3% 11.5%8% 9.8% 11.5% 20
21
Over $40,000 7%5.5% 10%7% 8.5% 10% 22
23
Single Up to $15,000 9%7% 13%9% 11% 13% 24
25
Over $15,000 26
up to $24,000 8%6.3% 11.5%8% 9.8% 11.5% 27
28
Over $24,000 7%5.5% 10%7% 8.5% 10% 29
30
Married 31
Filing 32
Separately Up to $12,500 9%7% 13%9% 11% 13% 33
34
Over $12,500 35
up to $20,000 8%6.3% 11.5%8% 9.8% 11.5% 36
37
Over $20,000 7%5.5% 10%7% 8.5% 10% 38
(b) Employment Related Expenses. – The amount of employment-related expenses for 39
which a credit may be claimed may not exceed three thousand dollars ($3,000) if the taxpayer's 40
household includes one qualifying individual, as defined in section 21(b)(1) of the Code, and 41
may not exceed six thousand dollars ($6,000) if the taxpayer's household includes more than one 42
qualifying individual. The amount of employment-related expenses for which a credit may be 43
claimed is reduced by the amount of employer-provided dependent care assistance excluded from 44
gross income. 45
(c) Limitations. – A nonresident or part-year resident who claims the credit allowed by 46
this section shall reduce the amount of the credit by multiplying it by the fraction calculated under 47
G.S. 105-134.5(b) or (c), G.S. 105-153.4(b) or (c), as appropriate. No credit shall be allowed 48
under this section for amounts deducted in calculating North Carolina taxable income. The credit 49
allowed by this section may not exceed the amount of tax imposed by this Part for the taxable 50 General Assembly Of North Carolina Session 2025
House Bill 316-First Edition Page 3
year reduced by the sum of all credits allowable, except for payments of tax made by or on behalf 1
of the taxpayer." 2
3
PART II. EXPAND NC PRE-K PROGRAM 4
SECTION 2.1. There is appropriated from the General Fund to the Department of 5
Health and Human Services, Division of Child Development and Early Education, the sum of 6
two hundred million dollars ($200,000,000) in recurring funds for each year of the 2025-2027 7
fiscal biennium for the North Carolina Prekindergarten (NC Pre-K) program to expand the 8
number of slots by 32,000 and cover all eligible children 4 years of age. 9
10
PART III. INCREASE SUBSIDIZED CHILD CARE FUNDING 11
SECTION 3.1. There is appropriated from the General Fund to the Department of 12
Health and Human Services, Division of Child Development and Early Education, the sum of 13
thirty-five million dollars ($35,000,000) in recurring funds for each year of the 2025-2027 fiscal 14
biennium to increase funding for subsidized child care. 15
16
PART IV. FUND PUBLIC SCHOOL LUNCHES 17
SECTION 4.1. G.S. 115C-263 reads as rewritten: 18
"§ 115C-263. School nutrition services. 19
(a) As a part of the function of the public school system, local boards of education public 20
school units shall have a school food authority to provide to the extent practicable school nutrition 21
services in the schools under their jurisdiction. jurisdiction by offering students lunch at no cost 22
to the student. A school food authority may offer students a breakfast option at a cost to the 23
student, unless the student is eligible for the School Breakfast Program. All school nutrition 24
services made available under this authority shall be provided in accordance with federal 25
guidelines established by the Food and Nutrition Service of the United States Department of 26
Agriculture. 27
(b) The To the extent that funds are made available for the purpose, the State Board of 28
Education shall allocate funds to school food authorities at public school units for the purpose of 29
providing healthy lunches at no cost to students. In issuing the allocation, the Board shall do the 30
following: 31
(1) Determine the amount to allocate to each school food authority based on an 32
evaluation of the authority's nutrition services. The Board shall develop the 33
method and criteria for the evaluation, which at a minimum shall account for 34
the following: 35
a. The size of the schools served by the school food authority as 36
determined by Average Daily Membership. 37
b. The number of students that are eligible for free or reduced-price lunch 38
and the estimated receipts from the National School Lunch Program. 39
c. The funds actually expended in the prior year, which may be waived 40
if the school food authority was not in operation in the year prior. 41
d. The extent to which the nutrition services promote health and wellness 42
by providing food that is of high quality and nutrient content. 43
e. The extent to which the school food authority uses locally sourced 44
food and products. 45
f. Any other information the Board deems relevant to the cost and 46
operation of the nutrition services. 47
(2) Ensure the funds are distributed on a fair and equitable basis. 48
(3) Issue the allocation at the beginning of each fiscal year, except that the Board 49
may reserve for future allocation a reasonable amount, not to exceed ten 50
percent (10%) of the total funds available for providing nutrition services. 51 General Assembly Of North Carolina Session 2025
Page 4 House Bill 316-First Edition
(c) The State Board of Education may adopt rules regulating the provision of school 1
nutrition that impose additional restrictions that are not inconsistent with the federal guidelines. 2
(d) Funds allocated pursuant to this section shall supplement and not supplant any other 3
funds from any other source provided for the same purpose." 4
SECTION 4.2. G.S. 115C-264(a) reads as rewritten: 5
"(a) Local boards of education operating school nutrition programs shall participate in the 6
federal National School Lunch Program established by the federal government. and, if eligible, 7
the Community Eligibility Provision Program. School nutrition programs shall be under the 8
jurisdiction of the Division of School Nutrition of the Department of Public Instruction." 9
SECTION 4.3 G.S. 115C-218.75 is amended by adding a new subsection to read: 10
"(p) A charter school shall provide school nutrition services in accordance with 11
G.S. 115C-263 and G.S. 115C-264." 12
SECTION 4.4. G.S. 115C-238.72(b) reads as rewritten: 13
"(b) Food Nutrition Service. – The local school administrative unit identified by resolution 14
shall provide, to the extent practicable, school food provide school nutrition services to the 15
regional school. school in accordance with G.S. 115C-263 and G.S. 115C-264. For purposes of 16
federal funding through the National School Lunch Program or other federally supported food 17
nutrition service programs, the local school administrative unit identified by resolution shall be 18
permitted to include eligible students enrolled in the regional school. Other participating units 19
shall not include students enrolled in the regional school for purposes of federally supported food 20
nutrition service programs." 21
SECTION 4.5. G.S. 115C-150.14 is amended by adding a new subsection to read: 22
"(a1) A school governed by this Article shall provide school nutrition services in 23
accordance with G.S. 115C-263 and G.S. 115C-264." 24
SECTION 4.6. G.S. 116-239.8(b)(4)c. reads as rewritten: 25
"c. Food Nutrition Services. – The laboratory school shall strive to ensure 26
that one hundred percent (100%) muscadine grape juice is made 27
available to students as a part of the school's nutrition program or 28
through the operation of the school's vending facilities. Laboratory 29
schools shall provide school nutrition services in accordance with 30
G.S. 115C-263 and G.S. 115C-264. Upon request, the local school 31
administrative unit in which the laboratory school is located shall 32
administer the National School Lunch Program for the laboratory 33
school in accordance with G.S. 115C-264.school." 34
SECTION 4.7. There is appropriated from the General Fund to the Department of 35
Public Instruction the sum of one hundred fifteen million dollars ($115,000,000) in recurring 36
funds for the 2025-2026 fiscal year to provide lunch to students in public school units at no cost 37
to the students in accordance with this section. Should this appropriation not be sufficient to 38
fulfill the provisions of this section for the 2025-2026 fiscal year, the State Board of Education 39
may use funds appropriated to State Aid for Public Schools for this purpose. 40
SECTION 4.8. There is appropriated from the General Fund to the Department of 41
Public Instruction the sum of three million one hundred sixty-six thousand six hundred dollars 42
($3,166,600) in nonrecurring funds for the 2025-2026 fiscal year to satisfy any outstanding 43
school nutrition program debt. Should this appropriation not be sufficient to satisfy all school 44
nutrition program debt by the end of the 2025-2026 fiscal year, the State Board of Education 45
shall use funds appropriated to State Aid for Public Schools for this purpose. 46
SECTION 4.9. The State Board of Education is granted authority to adopt temporary 47
rules to enact this section until permanent rules are adopted. 48
49
PART V. FUNDS FOR PU BLIC CHILD CARE PROV IDED BY COMMUNITY 50
COLLEGES 51 General Assembly Of North Carolina Session 2025
House Bill 316-First Edition Page 5
SECTION 5.1. Appropriation. – There is appropriated from the General Fund to the 1
Community Colleges System Office the sum of ten million dollars ($10,000,000) in nonrecurring 2
funds for the 2025-2026 fiscal year to be allocated in accordance with this section among 3
community colleges with an active child care program that is available to the public to support 4
and maintain that program. The State Board of Community Colleges shall adopt a formula for 5
allocating these funds. Funds shall be allocated based on the number of children served by the 6
program, and the State Board shall prioritize the award of funds based on the financial needs of 7
the program. These funds shall not revert at the end of the 2025-2026 fiscal year but shall remain 8
available until expended. 9
SECTION 5.2. Report. – Any community college that does not have a publicly 10
available child care program shall report to the State Board of Community Colleges on the 11
feasibility and advisability of implementing a publicly available child care program at that 12
community college, including recommendations for implementing such a child care program, 13
estimated costs, and barriers to implementation. The State Board shall aggregate that information 14
and report it to the Joint Legislative Education Oversight Committee no later than March 31, 15
2026. 16
17
PART VI. REPORT ON H IGH SCHOOL CHILD CAR E APPRENTICESHIP 18
PROGRAM 19
SECTION 6.1. No later than December 31, 2026, the Department of Public 20
Instruction, in consultation with each partner agency, shall report to the Joint Legislative 21
Education Oversight Committee on the feasibility and advisability of implementing a child care 22
apprenticeship program in public high schools. The report shall include at least the following 23
information: 24
(1) Estimated costs and a time line for implementing a statewide or regional child 25
care apprenticeship program. 26
(2) Expected student and community impacts of a child care apprenticeship 27
program, including impacts on student performance, attrition, well-being, and 28
any other factor the Department deems relevant to the report. 29
SECTION 6.2. No later than February 28, 2027, the Joint Legislative Education 30
Oversight Committee shall hold a committee meeting and receive an in-person presentation from 31
the Department, in partnership with each partner agency, on the report provided pursuant to 32
Section 6.1 of this act. 33
SECTION 6.3. For purposes of this section, the term "partner agency" shall refer to 34
the Department of Health and Human Services, the Board of Governors of The University of 35
North Carolina, and the State Board of Community Colleges. 36
37
PART VII. EFFECTIVE DATE 38
SECTION 7.1. Part I of this act is effective for taxable years beginning on or after 39
January 1, 2025. The remainder of this act becomes effective July 1, 2025. 40