AN ACT TO PROMOTE ECONOMIC RECOVERY FOR INDIVIDUALS AND FAMILIES IN NORTH CAROLINA.
Substantively identical to S 603, filed 4/6/21.
Includes whereas clauses.
States the NCGA's intent to use American Rescue Plan Act of 2021 funds for the Department of Revenue (DOR) to provide economic support to low-income families and families with employment interruptions resulting from the COVID-19 pandemic.
Creates the Individual and Family Relief Grant Program (Program) to be administered by DOR, to provide one-time grants to eligible individuals. Defines an eligible individual as one whose application is postmarked on or before July 1, 2021, and meets all of the following: (1) the applicant has either a filing status of single and an adjusted gross income of less than $35,000 or any other filing status and an adjusted gross income of $53,000 and (2) the applicant provides a name, mailing address, and any other required information. Sets the grant amount at $1,000 for an eligible individual who received benefits from the Division of Employment Security for unemployment for at least three months during the 2020 taxable year, and $250 for any other eligible individual. Requires grants to be awarded by October 1, 2021. Sets out the process for distributing the grant funds.
The above provisions are effective when an act appropriating funds for implementation becomes effective.
Enacts new GS 105-153.11 giving a credit to a taxpayer who has one or more qualifying relatives, as determined according to Table 5 of Publication 501 of the Internal Revenue Service, in the amount of $250. Requires a nonresident or part-year resident claiming the credit to reduce the credit amount as specified. Effective for taxable years beginning on or after January 1, 2021. Repeals the credit, effective for taxable years beginning on or after January 1, 2022.
Amends GS 105-153.5 to allow a taxpayer to deduct from the taxpayer's adjusted gross income the amount of a grant from the Program paid to the taxpayer during the taxable year. This is effective when the act becomes law and is repealed for taxable years beginning on or after January 1, 2022.
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