Bill Summary for S 116 (2021)

Summary date: 

Jun 2 2021

Bill Information:

View NCGA Bill Details2021
Senate Bill 116 (Public) Filed Thursday, February 18, 2021
AN ACT TO WITHDRAW FROM THE FEDERAL PANDEMIC UNEMPLOYMENTOMPENSATION (FPUC) AND THE MIXED EARNERS UNEMPLOYMENT COMPENSATION (MEUC) AGREEMENT, TO APPROPRIATE TO THE DEPARTMENT OF HEALTH AND HUMAN SERVICES THE SUM OF TWO HUNDRED FIFTY MILLION DOLLARS FROM THE CHILD CARE AND DEVELOPMENT BLOCK GRANT UNDER THE AMERICAN RESCUE PLAN ACT, TO REQUIRE INDIVIDUALS TO RESPOND TO EMPLOYER REQUESTS, AND TO MAKE ADMINISTRATIVE CHANGES TO THE UNEMPLOYMENT INSURANCE LAWS.
Intro. by Johnson, Sawyer, Britt.

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Bill summary

House committee substitute deletes the content of the 2nd edition and now provides the following.

Section 1

Explicitly denies the Division of Employment Security, Department of Commerce, the authority to administer payments under the Federal Pandemic Unemployment Compensation (FPUC, as described) program, effective 30 days after the date the act becomes law. States the legislative purpose of the Section is to withdraw from the FPUC agreement that provides additional payments to unemployment insurance claimants through September 6, 2021.

Section 2

Modifies the definition set forth for the defined term Code under GS 105-228.90(b)(7) to provide a distinct definition for the purpose of the amount of any expense deducted under the Code (defined as the Internal Revenue Code as it existed as of May 1, 2020) to the extent that payment of the expense results in forgiveness of a covered loan pursuant to section 1106(b) of the federal CARES Act, defining the term to mean the Internal Revenue Code as enacted as of January 1, 2021. Defines covered loan by federal statutory cross-reference to section 1106 of the CARES Act, to include certain small business loans under the Paycheck Protection Program/PPP. Effective for taxable years beginning on or after January 1, 2020, and expires for taxable years beginning on or after January 1, 2022.

Sections 3 and 4

Effective for taxable years beginning on or after January 1, 2020, repeals GS 105-130.5(a)(32) and GS 105-153.5(c2)(20), which require corporate and individual taxpayers to add to the taxpayer's adjusted gross income the amount of any expense deducted under the Internal Revenue Code to the extent that payment of the expense results in forgiveness of a covered loan pursuant to section 1106(b) of the federal CARES Act (governing the Payment Protection Program/PPP) and the income associated with the forgiveness is excluded from gross income pursuant to section 1106(i) of the CARES Act. Effective for taxable years beginning on or after January 1, 2022, these provisions are reenacted as they existed immediately before the repeal.

Section 5

Adds a new deduction to GS 105-153.5(b), allowing a taxpayer to deduct the amount excluded from the taxpayer's gross income for unemployment compensation received by the taxpayer under section 9042 of the American Rescue Plan Act of 2021.

Section 6 makes the act effective for taxable years beginning on or after January 1, 2020, except as otherwise provided. 

Changes the act's titles. 

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