House committee substitute to the 1st edition makes the following changes.

Modifies the term hiring party so that it includes entities or public or private persons, including an internet or application-based company, who hire or enter into a contract with an independent contractor in GS 66-515 (definitions pertaining to the Voluntary Portable Benefits Act). Clarifies that a hiring party may only contribute funds to a portable benefit account (PBA) for the work provided by an independent contractor in GS 66-516 (administration of a voluntary portable benefit plan-Plan).  Specifies that one of the sources of contribution to a PBA is the hiring party’s funds in addition to compensation (was, just the hiring party’s funds). Makes technical and clarifying changes.

Removes new GS 66-517 which set forth tax deductions available to both the hiring party and independent contractor making contributions to a Plan. Now allows an independent contractor to deduct the amount received from a hiring party in a Plan from their adjusted gross income under GS 105-153.5, effective for tax years beginning January 1, 2026.

Makes conforming change to effective date.