GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 304
Short Title: Reenact EITC. (Public)
Sponsors: Senators Smith, Grafstein, and Bradley (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 18, 2025
*S304 -v-1*
A BILL TO BE ENTITLED 1
AN ACT TO REENACT THE EARNED INCOME TAX CREDIT. 2
The General Assembly of North Carolina enacts: 3
SECTION 1. G.S. 105-151.31 is reenacted as it existed immediately before its 4
expiration, is recodified as G.S. 105-153.12, and reads as rewritten: 5
"§ 105-153.12. Earned income tax credit. 6
(a) Credit. – An individual who claims for the taxable year an earned income tax credit 7
under section 32 of the Code is allowed a credit against the tax imposed by this Part equal to a 8
percentage ten percent (10%) of the amount of credit the individual qualified for under section 9
32 of the Code. A nonresident or part-year resident who claims the credit allowed by this section 10
must reduce the amount of the credit by multiplying it by the fraction calculated under 11
G.S. 105-153.4(b) or (c), as appropriate. The percentage is as follows: 12
(1) For taxable year 2013, four and one-half percent (4.5%). 13
(2) For all other taxable years, five percent (5%). 14
(b) Credit Refundable. – If the credit allowed by this section exceeds the amount of tax 15
imposed by this Part for the taxable year reduced by the sum of all credits allowable, the Secretary 16
must refund the excess to the taxpayer. The refundable excess is governed by the provisions 17
governing a refund of an overpayment by the taxpayer of the tax imposed in this Part. Section 18
3507 of the Code, Advance Payment of Earned Income Credit, does not apply to the credit 19
allowed by this section. In computing the amount of tax against which multiple credits are 20
allowed, nonrefundable credits are subtracted before refundable credits. 21
(c) Sunset. – This section is repealed effective for taxable years beginning on or after 22
January 1, 2014." 23
SECTION 2. This act is effective for taxable years beginning on or after January 1, 24
2025. 25