GENERAL ASSEMBLY OF NORTH CAROLINA
HOUSE BILL 93
Short Title: Modify Refundability of EITC.
Representatives Howard, Setzer, Brubaker, and Starnes (Primary Sponsors).
For a complete list of Sponsors, see Bill Information on the NCGA Web Site.
February 16, 2011
A BILL TO BE ENTITLED
AN ACT to modify the refundability provision of the Earned income tax credit.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 105‑151.31 reads as rewritten:
"§ 105‑151.31. Earned income tax credit.
(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 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.
Credit Refundable. – If the credit allowed by
this section exceeds the amount of tax imposed by this Part for the taxable
year reduced by the sum of all credits allowable, the Secretary must refund the
excess to the taxpayer. The refundable excess is governed by the provisions
governing a refund of an overpayment by the taxpayer of the tax imposed in this
Part. Section 3507 of the Code, Advance Payment of Earned Income Credit, does
not apply to the credit allowed by this section. In computing the amount of tax
against which multiple credits are allowed, nonrefundable credits are
subtracted before refundable credits.Limitations. – The credit allowed
under this section may not exceed the amount of tax imposed by this Part for
the taxable year reduced by the sum of all credits allowable, except tax
payments made by or on behalf of the taxpayer.
(c) Sunset. – This section is repealed effective for taxable years beginning on or after January 1, 2013."
SECTION 2. This act is effective for taxable years beginning on or after January 1, 2011.