GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H D
HOUSE BILL DRH10337-NIf-106
Short Title: Recovery Support Via Revenue Stabilization. (Public)
Sponsors: Representative Lopez.
Referred to:
*DRH10337 -NIf-106*
A BILL TO BE ENTITLED 1
AN ACT TO REPEAL THE CORPORATE INCOME TAX PHASEOUT. 2
Whereas, North Carolina has been consistently ranked as one of the top states for 3
business; and 4
Whereas, North Carolina fosters a pro-business environment, fueled by the lowest 5
corporate income tax in the United States, out of all states that levy a corporate income tax; and 6
Whereas, North Carolina is still recovering from Hurricane Helene, one of the largest 7
natural disasters in the State's history; and 8
Whereas, Hurricane Helene has left significant long-term impacts to western North 9
Carolina; and 10
Whereas, it is the public policy of the General Assembly to ensure that North Carolina 11
has the funds needed to support a full and complete recovery while remaining a low corporate 12
income tax state; Now, therefore, 13
The General Assembly of North Carolina enacts: 14
SECTION 1. G.S. 105-130.3 reads as rewritten: 15
"ยง 105-130.3. Corporations. 16
A tax is imposed on the State net income of every C Corporation doing business in this State. 17
State at the rate of two and one-quarter percent (2.25%). An S Corporation is not subject to the 18
tax levied in this section. The tax is a percentage of the taxpayer's State net income computed as 19
follows: 20
Taxable Years Beginning Tax 21
In 2025 2.25% 22
In 2026 2% 23
In 2028 1% 24
After 2029 0%." 25
SECTION 2. This act is effective for taxable years beginning on or after January 1, 26
2026. 27
H.B. 711
Apr 2, 2025
HOUSE PRINCIPAL CLERK