GENERAL ASSEMBLY OF NORTH CAROLINA
1993 SESSION
CHAPTER 432
The General Assembly of North Carolina enacts:
Section 1. G.S. 105-151.11 reads as rewritten:
"§ 105-151.11. Credit for child care and certain employment-related expenses.
(a) Credit. - A person who is allowed a credit against federal income tax for a percentage of employment-related expenses under section 21 of the Code shall be allowed as a credit against the tax imposed by this Division an amount equal to the applicable percentage of the employment-related expenses as defined in section 21(b)(2) of the Code. In order to claim the credit allowed by this section, the taxpayer must provide with the tax return the information required by the Secretary.
(a1) Applicable Percentage.
- For employment-related expenses that are incurred only with respect to
one or more dependents who are seven years old or older and are not physically
or mentally incapable of caring for themselves, the applicable percentage is seven
percent (7%). the appropriate percentage in the column labeled
'Percentage A' in the table below, based on the taxpayer's adjusted gross
income determined under the Code. For employment-related expenses
with respect to any other qualifying individual, the applicable percentage is ten
percent (10%). the appropriate percentage in the column labeled
'Percentage B' in the table below, based on the taxpayer's adjusted gross
income determined under the Code.
Filing Status Adjusted Gross Percentage A Percentage B
Income
Head of Up to $20,000 9% 13%
Household
Over $20,000
up to $32,000 8% 11.5%
Over $32,000 7% 10%
Surviving
Spouse or
Joint Return Up to $25,000 9% 13%
Over $25,000
up to $40,000 8% 11.5%
Over $40,000 7% 10%
Single Up to $15,000 9% 13%
Over $15,000
up to $24,000 8% 11.5%
Over $24,000 7% 10%
Married
Filing
Separately Up to $12,500 9% 13%
Over $12,500
up to $20,000 8% 11.5%
Over $20,000 7% 10%
(b) Employment Related Expenses. - The amount of employment-related expenses for which a credit may be claimed may not exceed two thousand four hundred dollars ($2,400) if the taxpayer's household includes one qualifying individual, as defined in section 21(b)(1) of the Code, and may not exceed four thousand eight hundred dollars ($4,800) if the taxpayer's household includes more than one qualifying individual.
(c) No credit shall be allowed under this section unless
the taxpayer completes and attaches to the tax return the necessary form or
forms as may be required by the Secretary. Limitations. - No
credit shall be allowed under this section for amounts deducted from gross
income in calculating taxable income under the Code. (d) The
credit allowed by this section may not exceed the amount of tax imposed by this
Division for the taxable year reduced by the sum of all credits allowable under
this Division, except for payments of tax made by or on behalf of the taxpayer.
(e) No credit shall be allowed under this section with respect to
employment-related expenses paid by a nonresident of this State."
Sec. 2. This act is effective for taxable years beginning on or after January 1, 1994.
In the General Assembly read three times and ratified this the 22nd day of July, 1993.
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Dennis A. Wicker
President of the Senate
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Daniel Blue, Jr.
Speaker of the House of Representatives