Bill Summaries: all (2015-2016 Session)

Tracking:
  • Summary date: Feb 24 2015 - View summary

    Amends GS 105-153.3 to add a new subdivision (15a) defining the term "retirement plan," as used in the state Individual Income Tax Act.Defines a "retirement plan," as a written plan established by the employer to make payments to an employee or the beneficiary of an employee after the employee's period of employment ends and where the entitlement to the payments is based upon the employment relationship. Also defines the term as used with respect to a self-employed person or the beneficiary of a self-employed person. Additionally, declares that the term include an individual retirement plan as defined in the Tax Code and any plan treated as an individual retirement plan under the Code. Provides that for the purposes of this new subdivision, the term "employee" includes a volunteer worker.

    Adds a new subdivision (5a) to GS 105-153.5(b), which provides that a taxpayer may make other deductions from the taxpayer's adjusted gross income (AGI) for specified items in this section that are included in the taxpayers AGI. Provides a time table for a taxpayer regarding the amount received during the specified taxable year from one or more state, local, or federal government retirement plans subject to the phase-in provided in this new subdivision. This section is effective for taxable years beginning on or after January 1, 2015, and repealed for taxable years beginning on or after January 1, 2024.

    Amends GS 10-153.5(b) to add two new subdivisions effective for taxable years beginning on or after January 1, 2024. Provides that a taxpayer may deduct from the taxpayer's AGI any of the following items included in the taxpayer's AGI: (1) the amount received during the taxable year under state and local government retirement plans and under federal government retirement plans, and (2) the amount received during the taxable year under a state or local government retirement plan of a state other than North Carolina, to the extent that the other state would not subject the equivalent amount received under a North Carolina state or local government retirement plan to individual income tax.

    Except as otherwise indicated, this act is effective when it becomes law.