AN ACT TO MAKE TECHNICAL AND CLARIFYING CHANGES TO VARIOUS REVENUE LAWS, AS RECOMMENDED BY THE REVENUE LAWS STUDY COMMITTEE.
Senate committee substitute makes the following changes to the 2nd edition.
Changes the short and long titles.
Under current law, North Carolina's tax law tracks many of the provisions of the federal Internal Revenue Code (IRC) by reference to the IRC.
Amends GS 105-228.90(b)(1b) to update the reference to the IRC from December 31, 2013, to January 1, 2015, thereby including any provisions of the IRC enacted as of January 1, 2015, that became effective before or after that date.
Amends GS 105-130.5B(c) and GS 105-153.6(c) to update and provide that for the purposes of those provisions, the definition ofsection 179 propertyhas the same meaning as under section 179 of the federal internal revenue code as of January 1, 2015 (was, January 2, 2013).
Decouples North Carolina's tax law from extensions under the federal Tax Increase Prevention Act of 2014 (TIPA) for the 2014 tax year. Amends GS 105-130.5B(c) and GS 105-153.6(c), regarding the adjustments made when the state decouples from federal accelerated depreciation and expensing, to provide that for the 2014 tax year, North Carolina tax law sets the deduction and investment limits of the enhanced section 179 expensing provision at $25,000 and $200,000.
Amends GS 105-153.5, modifications to adjusted gross income, adding new language that provides that in calculating the itemized deduction amount for taxable year 2014, when electing to take the income exclusion under section 408(d)(8) of the revenue code for qualified charitable distribution from an individual retirement plan, a person 70 1/2 years old or older can deduct the amount that would have been allowed as a charitable deduction under section 170 of the revenue code had the taxpayer not elected to take the income exclusion. Also adds that in calculating the itemized deduction amount for taxable year 2014, the amount allowed as a deduction for interest paid or accrued during the taxable year under section 163(h) of the Code with respect to any qualified residence must not include the amount for mortgage insurance premiums treated as qualified residence interest.
Additionally, amends GS 105-153.5, enacting new subsection (d), which provides that North Carolina tax law does not conform to the extension of: (1) the income exclusion for the discharge of qualified residence indebtedness as provided under the IRC and (2) the federal qualified tuition and expenses deduction for tax year 2014. Additionally, this act provides that North Carolina's tax law does not conform with the IRC provision that allows taxpayers who are age 70�_ or older to contribute up to $100,000 from their IRA to a charity tax free.
Effective when this act becomes law. Provides that any amendments to the IRC enacted after December 31, 2013, that increase North Carolina taxable income for the 2014 taxable year become effective for taxable years beginning on or after January 1, 2015.
© 2021 School of Government The University of North Carolina at Chapel Hill
This work is copyrighted and subject to "fair use" as permitted by federal copyright law. No portion of this publication may be reproduced or transmitted in any form or by any means without the express written permission of the publisher. Distribution by third parties is prohibited. Prohibited distribution includes, but is not limited to, posting, e-mailing, faxing, archiving in a public database, installing on intranets or servers, and redistributing via a computer network or in printed form. Unauthorized use or reproduction may result in legal action against the unauthorized user.