AN ACT TO CREATE AN INCOME TAX CREDIT FOR CHILDREN WHO ARE HOME SCHOOLED.
Enacts new GS 105-153.11 to allow a taxpayer a personal income tax credit of $1,250 per semester for each eligible dependent child who is a state resident, and who for one or two semesters during the taxable year is enrolled in a home school (which must meet the requirements of GS 115C-564). Defines semesters and provides that an eligible dependent child is enrolled in a home school for a semester if the eligible dependent child is enrolled in that home school for more than 70 days during that semester. Sets out the following disqualifying events: (1) the child spent time enrolled in a public school, (2) the child spent time enrolled as a full‑time student taking at least 12 hours of academic credit in a postsecondary educational institution, (3) the child was 22 years of age or older during the entire semester, or (4) the child graduated from high school prior to the end of the semester. Requires the taxpayer to provide specified information, when requested, in order to claim the tax credit. Allows any unused portion of the credit to be carried forward for the succeeding three years.
Requires the Department of Revenue to report to the Revenue Laws Study Committee and the Joint Legislative Education Oversight Committee on the administration of the new statute. Requires the report, which is due by October 1, 2021, to include three specified types of information.
Effective for taxable years beginning on or after January 1, 2019, and applies to semesters for which the credit is claimed beginning on or after July 1, 2019.
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