| 12 | 13 | | A BILL TO BE ENTITLED 1 |
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| 13 | 14 | | AN ACT TO REENACT THE EARNED INCOME TAX CREDIT. 2 |
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| 14 | 15 | | The General Assembly of North Carolina enacts: 3 |
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| 15 | 16 | | SECTION 1. G.S. 105-151.31 is reenacted as it existed immediately before its 4 |
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| 16 | 17 | | expiration, is recodified as G.S. 105-153.12, and reads as rewritten: 5 |
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| 17 | 18 | | "§ 105-153.12. Earned income tax credit. 6 |
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| 18 | 19 | | (a) Credit. – An individual who claims for the taxable year an earned income tax credit 7 |
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| 19 | 20 | | under section 32 of the Code is allowed a credit against the tax imposed by this Part equal to a 8 |
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| 20 | 21 | | percentage ten percent (10%) of the amount of credit the individual qualified for under section 9 |
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| 21 | 22 | | 32 of the Code. A nonresident or part-year resident who claims the credit allowed by this section 10 |
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| 22 | 23 | | must reduce the amount of the credit by multiplying it by the fraction calculated under 11 |
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| 23 | 24 | | G.S. 105-153.4(b) or (c), as appropriate. The percentage is as follows: 12 |
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| 24 | 25 | | (1) For taxable year 2013, four and one-half percent (4.5%). 13 |
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| 25 | 26 | | (2) For all other taxable years, five percent (5%). 14 |
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| 26 | 27 | | (b) Credit Refundable. – If the credit allowed by this section exceeds the amount of tax 15 |
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| 27 | 28 | | imposed by this Part for the taxable year reduced by the sum of all credits allowable, the Secretary 16 |
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| 28 | 29 | | must refund the excess to the taxpayer. The refundable excess is governed by the provisions 17 |
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| 29 | 30 | | governing a refund of an overpayment by the taxpayer of the tax imposed in this Part. Section 18 |
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| 30 | 31 | | 3507 of the Code, Advance Payment of Earned Income Credit, does not apply to the credit 19 |
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| 31 | 32 | | allowed by this section. In computing the amount of tax against which multiple credits are 20 |
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| 32 | 33 | | allowed, nonrefundable credits are subtracted before refundable credits. 21 |
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| 33 | 34 | | (c) Sunset. – This section is repealed effective for taxable years beginning on or after 22 |
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| 34 | 35 | | January 1, 2014." 23 |
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| 35 | 36 | | SECTION 2. This act is effective for taxable years beginning on or after January 1, 24 |
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| 36 | 37 | | 2025. 25 |
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