NC H96

Expands the definition of "retirement plan" in North Carolina tax code to clarify it includes individual retirement accounts and plans treated as individual retirement accounts under federal law.

Creates a phased-in deduction for government retirement benefits beginning in 2013, with full deduction eligibility based on vesting dates ranging from August 1992 through August 2016, becoming fully available by 2021.

Allows deduction of amounts received from North Carolina state and local government retirement plans and federal government retirement plans with no dollar limit.

Permits deduction of up to $4,000 annually from out-of-state government retirement plans, with equal treatment for married couples filing jointly if both spouses receive such benefits.

Repeals the phased-in deduction and replaces it with the permanent deduction structure effective for tax years beginning January 1, 2022.