A BILL TO BE ENTITLED AN ACT TO UPDATE THE REFERENCE TO THE INTERNAL REVENUE CODE AND TO DECOUPLE FROM CERTAIN PROVISIONS OF THE FEDERAL AMERICAN TAXPAYER RELIEF ACT OF 2012. Enacted March 13, 2013, Effective January 1, 2012, except as otherwise provided.
Summary date: Mar 13 2013 - View summary
Bill H 82 (2013-2014)Summary date: Feb 13 2013 - View summary
House committee substitute makes the following changes to 1st edition. Makes clarifying changes.
Bill H 82 (2013-2014)Summary date: Feb 7 2013 - View summary
Amends GS 105-228.90(b)(1b) by changing the reference to the Internal Revenue Code (IRC)from that enacted as of January 1, 2012, to that enacted as of January 1, 2013. This change makes recent amendments to the Internal Revenue Code applicable to state law to the extent that it tracks federal tax law. Additionally, amends GS 105-130.5(a)(15b), GS 105-130.5(b)(21b), GS 105-134.6(c)(8b), andGS 105-134.6(b)(17b) to update the reference to the Internal Revenue Code enacted as of January 1, 2013.
Makes multiple changes to GS 105-130.5 and GS 105-134.6regarding adjustments and deductions to federal taxable income in determining state net income.
Amends GS 105-129.16G (work opportunity tax credit) to provide that the credit allowed under this sectionfor employee positions located in North Carolina is3% of the amount of credit allowed under the IRC for wages paid during taxable year 2013 and 6% for all other taxable years (was, 6% for all taxable years).
Adds new subdivision (16) to GS 105-134.6(c) todecouple the state tax code from the extension of the federal deduction under section 207 of the American Tax Relief Act of 2012.Also amendsGS 105-134.6(c) to decouple the state tax code from the extension of the income exclusion under section 208 of the American Taxpayer Relief Act of 2012.
Amends GS 105-134.6(d)(2) to prohibit the specified deduction if the taxpayer has claimed the Hope Scholarship credit, the Lifetime Learning credit, or the American Opportunity tax credit instead of a deduction for qualified tuition and expenses.
Amends GS 105-151.31 (earned income tax credit) to provide that the credit allowed under this section against the tax imposed by this Part is 4.5% of the credit for which the individual qualified under section 32 of the IRC for taxable year 2013 and 5% for all other taxable years (was, 5% for all taxable years).
Amends GS 105-151.32 (credit for adoption expenses) to provide that the credit allowed under this section is equal to 30% of the amount of credit allowed under section 36C (was, Section 23) of the IRC for taxable year 2013 and 50% for all other taxable years (was, 50% for all taxable years).
Effective whenthe actbecomes law, except as otherwise provided, and applies to the estates of decedents dying on or after January 1, 2012. Notwithstanding the provisions of this act. any amendments to the IRC enacted after January 1, 2012,that increase North Carolina taxable income for the 2012 taxable year become effective for taxable years beginning on or after January 1, 2013.