Bill Summary for H 1138 (2021)

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Summary date: 

May 27 2022

Bill Information:

View NCGA Bill Details2021
House Bill 1138 (Public) Filed Thursday, May 26, 2022
AN ACT TO REENACT A STATE-LEVEL CHILD TAX CREDIT.
Intro. by Lofton, Reives, Harris.

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Bill summary

Substantively identical to S 865, filed 5/26/22.

Amends GS 105-153.10, which provides for the the state child tax credit. Defines qualifying child by reference to the Internal Revenue Code (Code). Eliminates the provisions which require the taxpayer to be permitted a federal tax credit as a qualifying condition to the state child tax credit. Increases the credit amount, ranging from $125 to $250 depending on filing status (was, $100 to $125). Updates the statutory cross-reference regarding the calculation of state taxable income. Prohibits married individuals who file separate returns from collectively claiming more than the maximum credit allowed under a joint return. Eliminates the provision that prohibits the credit allowed from exceeding the amount of individual income tax imposed by the Part 2, Article 4, for the taxable year reduced by the sum of all credits allowed, excluding payments made by or on behalf of the taxpayer. Instead, enacts new provisions that allow the credit to exceed the amount of individual income tax imposed for the taxable year reduced by the sum of all credits allowable, and requires the Secretary of the Department of Revenue to issue a refund of the excess to the taxpayer. Provides for refunds and computation of allowable credits, with nonrefundable credits subtracted before refundable credits. Effective for taxable years beginning on or after January 1, 2022.