NC S719

Adds a new subsection (c) to G.S. 105-134.2 capping the tax rate on net business income of small business owners at the corporate tax rate under G.S. 105-130.3.

Defines a small business as one with cumulative gross receipts from all business activity not exceeding $850,000 in a taxable year.

Excludes passive income from the definition of business income for purposes of this small business tax rate limitation.

Becomes effective for taxable years beginning on or after January 1, 2011.