| 13 | 13 | | A BILL TO BE ENTITLED 1 |
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| 14 | 14 | | AN ACT TO REPEAL THE CORPORATE INCOME TAX PHASEOUT. 2 |
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| 15 | 15 | | Whereas, North Carolina has been consistently ranked as one of the top states for 3 |
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| 16 | 16 | | business; and 4 |
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| 17 | 17 | | Whereas, North Carolina fosters a pro-business environment, fueled by the lowest 5 |
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| 18 | 18 | | corporate income tax in the United States, out of all states that levy a corporate income tax; and 6 |
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| 19 | 19 | | Whereas, North Carolina is still recovering from Hurricane Helene, one of the largest 7 |
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| 20 | 20 | | natural disasters in the State's history; and 8 |
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| 21 | 21 | | Whereas, Hurricane Helene has left significant long-term impacts to western North 9 |
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| 22 | 22 | | Carolina; and 10 |
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| 23 | 23 | | Whereas, it is the public policy of the General Assembly to ensure that North Carolina 11 |
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| 24 | 24 | | has the funds needed to support a full and complete recovery while remaining a low corporate 12 |
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| 25 | 25 | | income tax state; Now, therefore, 13 |
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| 26 | 26 | | The General Assembly of North Carolina enacts: 14 |
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| 27 | 27 | | SECTION 1. G.S. 105-130.3 reads as rewritten: 15 |
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| 28 | 28 | | "ยง 105-130.3. Corporations. 16 |
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| 29 | 29 | | A tax is imposed on the State net income of every C Corporation doing business in this State. 17 |
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| 30 | 30 | | State at the rate of two and one-quarter percent (2.25%). An S Corporation is not subject to the 18 |
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| 31 | 31 | | tax levied in this section. The tax is a percentage of the taxpayer's State net income computed as 19 |
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| 32 | 32 | | follows: 20 |
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| 33 | 33 | | Taxable Years Beginning Tax 21 |
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| 34 | 34 | | In 2025 2.25% 22 |
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| 35 | 35 | | In 2026 2% 23 |
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| 36 | 36 | | In 2028 1% 24 |
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| 37 | 37 | | After 2029 0%." 25 |
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| 38 | 38 | | SECTION 2. This act is effective for taxable years beginning on or after January 1, 26 |
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| 39 | 39 | | 2026. 27 |
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