GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 455
Short Title: Main Street Resilience Act. (Public)
Sponsors: Senators Everitt, Bradley, and Grafstein (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 25, 2025
*S455 -v-1*
A BILL TO BE ENTITLED 1
AN ACT TO PROVIDE INCOME TAX RELIEF TO SMALL BUSINESSES. 2
The General Assembly of North Carolina enacts: 3
SECTION 1. G.S. 105-153.5(b) reads as rewritten: 4
"(b) Other Deductions. – In calculating North Carolina taxable income, a taxpayer may 5
deduct from the taxpayer's adjusted gross income any of the following items that are included in 6
the taxpayer's adjusted gross income: 7
… 8
(17) An amount not to exceed seventy-five thousand dollars ($75,000) of net 9
business income the taxpayer receives during the taxable year if the taxpayer 10
is a small business. In the case of a married couple filing a joint return where 11
both spouses receive or incur net business income, the maximum dollar 12
amounts apply separately to each spouse's net business income, not to exceed 13
a total of one hundred fifty thousand dollars ($150,000). For purposes of this 14
subdivision, the term "business income" does not include income that is 15
considered passive income under the Code, and the term "small business" 16
means an independently owned and operated business (i) whose employees, 17
combined with the employees of all related persons, for the relevant tax year 18
did not exceed 50 and (ii) with annual revenues of less than five million dollars 19
($5,000,000)." 20
SECTION 2. This act is effective for taxable years beginning on or after January 1, 21
2026. 22