Reenacts the Earned Income Tax Credit in North Carolina for taxable years beginning on or after January 1, 2026.
North Carolina S942 reenacts the Earned Income Tax Credit (EITC) as it existed before its expiration. This bill allows eligible individuals to claim a credit against their tax, with a refundable portion if the credit exceeds the tax owed. The credit is calculated based on a percentage of the amount qualified for under section 32 of the Code, with different percentages for specific years. Nonresidents or part-year residents must adjust the credit amount based on their residency status. The act is effective for taxable years beginning on or after January 1, 2026.
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