North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S712 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 1
4		-	SENATE BILL 712
	3	+	S D
	4	+	SENATE BILL DRS35249-MCxf-122
	5	+
5	6
6	7
7	8		Short Title: Caring for Our Caregivers Act. (Public)
8	9		Sponsors: Senators Chitlik and Bradley (Primary Sponsors).
9		-	Referred to: ~~Rules and Operations of the Senate~~
10		-	~~March 26, 2025~~
11		-	~~S712 -v-1~~
	10	+	Referred to:
	11	+
	12	+	DRS35249 -MCxf-122
12	13		A BILL TO BE ENTITLED 1
13	14		AN ACT TO ENACT THE CARING FOR OUR CAREGIVERS ACT. 2
14	15		The General Assembly of North Carolina enacts: 3
15	16		4
16	17		INCOME TAX EXEMPTION 5
17	18		SECTION 1.(a) G.S. 105-153.7 reads as rewritten: 6
18	19		"§ 105-153.7. Individual income tax imposed. 7
19	20		(a) Tax. – A tax is imposed for each taxable year on the North Carolina taxable income 8
20	21		of every individual. The tax shall be levied, collected, and paid annually. Except as otherwise 9
21	22		provided in subsection (a1) of this section, the tax is a percentage of the taxpayer's North Carolina 10
22	23		taxable income computed as follows:shall be computed at the following percentages of the 11
23	24		taxpayer's income for taxable year 2025 and computed at the following percentage reduced by 12
24	25		twenty-six hundredths percent (0.26%) for taxable years after 2025: 13
25	26		Taxable Years Beginning Tax 14
26	27		In 2022 4.99% 15
27	28		In 2023 4.75% 16
28	29		In 2024 4.5% 17
29	30		In 2025 4.25% 18
30	31		After 2025 3.99%. 19
31	32		(1) For married individuals who file a joint return under G.S. 105-153.8 and for 20
32	33		surviving spouses, as defined in section 2(a) of the Code: 21
33	34		Over Up To Rate 22
34	35		-0- 1,000,000 4.25% 23
35	36		$1,000,000 NA 5.05% 24
36	37		(2) For heads of households, as defined in section 2(b) of the Code: 25
37	38		Over Up To Rate 26
38	39		-0- $800,000 4.25% 27
39	40		$800,000 NA 5.05% 28
40	41		(3) For unmarried individuals other than surviving spouses and heads of 29
41	42		households: 30
42	43		Over Up To Rate 31
43	44		-0- 600,000 4.25% 32
44	45		$600,000 NA 5.05% 33
45	46		(4) For married individuals who do not file a joint return under G.S. 105-153.8: 34
46	47		Over Up To Rate 35
47		-	-0- 500,000 4.25% 36 General Assembly Of North Carolina Session 2025
48		-	Page 2 Senate Bill 712-First Edition
	48	+	-0- 500,000 4.25% 36
	49	+	FILED SENATE
	50	+	Mar 25, 2025
	51	+	S.B. 712
	52	+	PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	53	+	Page 2 DRS35249-MCxf-122
49	54		$500,000 NA 5.05% 1
50	55		(a1) Rate Reduction Trigger. – Notwithstanding the tax rates set out in subsection (a) of 2
51	56		this section, if total General Fund revenue in a fiscal year set out below exceeds the trigger 3
52	57		amount indicated for that fiscal year, then the applicable tax rate for the indicated and subsequent 4
53	58		tax years shall be equal to the greater of (i) the prior taxable year's rate decreased by one-half 5
54	59		percentage point (0.50%) or (ii) two and forty-nine hundredths percent (2.49%). For purposes of 6
55	60		this subsection, total General Fund revenue is the amount stated in the final accounting of total 7
56	61		General Fund Reverting Net Tax and Non-Tax Revenues for the fiscal year, as reported by the 8
57	62		Office of State Controller in August following the end of the fiscal year. 9
58	63		Fiscal Year Trigger Amount Taxable Year Beginning 10
59	64		FY 2025-2026 $33,042,000,000 In 2027 11
60	65		FY 2026-2027 $34,100,000,000 In 2028 12
61	66		FY 2027-2028 $34,760,000,000 In 2029 13
62	67		FY 2028-2029 $35,750,000,000 In 2030 14
63	68		FY 2029-2030 $36,510,000,000 In 2031 15
64	69		FY 2030-2031 $38,000,000,000 In 2032 16
65	70		FY 2031-2032 $38,500,000,000 In 2033 17
66	71		FY 2032-2033 $39,000,000,000 In 2034 18
67	72		(b) Withholding Tables. – The Secretary may provide tables that compute the amount of 19
68	73		tax due for a taxable year under this Part. The amounts of the tax determined under the tables 20
69	74		shall be computed on the basis of the rates prescribed by subsection (a) of this section. The tables 21
70	75		do not apply to an individual who files a return under section 443(a)(1) of the Code for a period 22
71	76		of less than 12 months due to a change in the individual's annual accounting period or to an estate 23
72	77		or trust." 24
73	78		SECTION 1.(b) G.S. 105-153.5(b) is amended by adding a new subdivision to read: 25
74	79		"(6a) Income earned for work performed as one of the following: 26
75	80		a. Firefighter. 27
76	81		b. Emergency medical services personnel, including the following: 28
77	82		1. Emergency medical responder. 29
78	83		2. Paramedic. 30
79	84		3. Rescue squad member. 31
80	85		c. Emergency management worker. 32
81	86		d. 911 call center worker. 33
82	87		e. Sworn law enforcement officer with the power of arrest. 34
83	88		f. Child care worker. 35
84	89		g. Public school unit employee. 36
85	90		h. Probation or parole officer. 37
86	91		i. Corrections officer." 38
87	92		SECTION 1.(c) This section is effective for taxable years beginning on or after 39
88	93		January 1, 2025. 40
89	94		41
90	95		BENEFITS FOR CAREGIVER WORKERS 42
91	96		SECTION 2.(a) For the purposes of this section, a qualifying caregiver worker is 43
92	97		any individual who meet both of the following requirements: 44
93	98		(1) Has an annual household income that does not exceed one hundred 45
94	99		twenty-five thousand dollars ($125,000). 46
95	100		(2) Is employed in the State at least 30 hours a week as one of the following: 47
96	101		a. Firefighter. 48
97	102		b. Emergency medical services personnel, including the following: 49
98	103		1. Emergency medical responder. 50
99	104		2. Paramedic. 51 General Assembly Of North Carolina Session 2025
100		-	~~Senate Bill 712-First Edition~~ Page 3
	105	+	DRS35249-MCxf-122 Page 3
101	106		3. Rescue squad member. 1
102	107		c. Emergency management worker. 2
103	108		d. 911 call center worker. 3
104	109		e. Sworn law enforcement officer with the power of arrest. 4
105	110		f. Child care worker. 5
106	111		g. Public school unit employee. 6
107	112		h. Probation or parole officer. 7
108	113		i. Corrections officer. 8
109	114		SECTION 2.(b) There is appropriated from the General Fund to the Department of 9
110	115		Health and Human Services, Division of Child Development and Early Education, the sum of 10
111	116		one hundred sixty-five million dollars ($165,000,000) recurring for each year of the 2025-2026 11
112	117		fiscal biennium to provide subsidized child care services to a family that includes an individual 12
113	118		employed as a qualifying caregiver worker. The Division of Child Development and Early 13
114	119		Education shall give priority to child care workers in award of these subsidies. 14
115	120		SECTION 2.(c) This section becomes effective July 1, 2025. 15
116	121		16
117	122		EFFECTIVE DATE 17
118	123		SECTION 3. Except as otherwise provided herein, this act is effective when it 18
119	124		becomes law. 19