Provides as follows, depending on the passing of H 973 or S 726, which are identical bills concerning updating the reference to the Internal Revenue Code and decoupling from certain provisions of the federal Protecting Americans from Tax Hike Act of 2015.

If either H 973 or S 726 of the 2016 Regular Session of the 2015 General Assembly passes, then amends GS 105-153.5(c2) to provide that in calculating North Carolina taxable income, a taxpayer must add to the taxpayer's adjusted gross income, for taxable year 2014 (was, for taxable years 2014, 2015, and 2016), the amount excluded from the taxpayer's gross income for the discharge of qualified principal residence indebtedness under section 108 of the Internal Revenue Code (Code).

If either H 973 or S 726 of the 2016 Regular Session of the 2015 General Assembly does not pass, then amends GS 105-153.5(b), which provides that in calculating North Carolina taxable income, a taxpayer may deduct from the taxpayer's adjusted gross income specified items that are included in the taxpayer's adjusted gross income by adding the amount excluded from the taxpayer's gross income for a discharge of qualified principal residence indebtedness under section 108 of the Code to the allowable deductions.

Effective for taxable years beginning on or after January 1, 2016.