Includes whereas clauses.

Reenacts and amends GS 105-153.10, which provides for 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. Changes the amount of the credit to (1) $1,900 for each qualifying child six years old or younger and (2) $1,600 for any other qualifying child. Phases out the amount of the credit proportionally based on the income phase out applicable to the federal earned income tax credit. 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, 2025.