NC H41

Creates a refundable individual income tax credit of $1,250 per semester for taxpayers with dependent children in grades K-12 attending non-public schools, with income limits ranging from $50,000 to $100,000 depending on filing status.

Requires eligible children to have attended at least one semester of public school in the immediately preceding year to qualify for the credit initially (reduced from two semesters effective January 1, 2016).

Disqualifies children from the credit if they enroll in public school, attend postsecondary institutions full-time, or turn 18 during the entire semester.

Authorizes county commissioners to appropriate up to $1,000 per year per child for education expenses of resident children under age 18 enrolled in non-public schools, distributing funds to the child's parent or guardian.

Effective July 1, 2011, with modifications to initial eligibility requirements effective January 1, 2016.