GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2007

H                                                                                                                                                    1

HOUSE BILL 2642

Short Title:     Increase Earned Income Tax Credit Percentage.		(Public)
Sponsors:	Representatives Wainwright, Weiss, Luebke, Ross (Primary Sponsors);  Blue, Bryant, Carney, Coleman, Faison, Farmer-Butterfield, Fisher, Glazier, Goforth, Hall, Harrison, Hughes, Insko, Lucas, Tarleton, and Womble.
Referred to:	Finance.

May 28, 2008

A BILL TO BE ENTITLED

AN ACT to increase the earned income tax credit to five percent.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105-151.31(a) reads as rewritten:

"(a)      Credit. - An individual who claims for the taxable year an earned income tax credit under section 32 of the Code is allowed a credit against the tax imposed by this Part equal to three and one-half percent (3.5%)five percent (5%) of the amount of credit the individual qualified for under section 32 of the Code. A nonresident or part-year resident who claims the credit allowed by this section must reduce the amount of the credit by multiplying it by the fraction calculated under G.S. 105-134.5(b) or (c), as appropriate."

SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2008.