Amends GS 105-134.2 to add a business entity exemption to the state’s individual income tax rate as computed in subsection (a) of GS 105-134.2. Provides that before a qualified business entity computes the tax in subsection (a), it may subtract $50,000 from state net income. Defines a qualified business entity as a business entity that is neither a publicly traded corporation nor an affiliate, as defined in GS 105-163.010, of a publicly traded corporation. Makes conforming and technical changes.