NC H1171

Extends the sunset date for North Carolina's earned income tax credit (EITC) from January 1, 2013 to January 1, 2016.

The state EITC provides eligible individuals a credit equal to 5% of the federal earned income tax credit claimed under Section 32 of the Internal Revenue Code.

The credit is refundable, meaning taxpayers can receive a refund if the credit exceeds their state tax liability.

Nonresidents and part-year residents must reduce their credit amount by the appropriate apportionment fraction.

The act becomes effective upon passage into law.