Amends GS 105-153.5(b) pertaining to the deductions allowed for adjusted gross income in calculating individual income tax as follows.  Allow an individual paying income tax to deduct from the taxpayer's adjusted gross income up to $75,000 of net business income the taxpayer received during the taxable year if the tax payer is a small business. Provides that for a married couple filing jointly, if both spouses receive or incur net business income, the maximum amounts apply separately to each spouse's net business income, not to exceed a total of $150,000. Excludes from business income any income that is considered passive income. Defines small business. Effective for taxable years beginning on or after January 1, 2026.