NC S185

Extends the sunset date for North Carolina's earned income tax credit from January 1, 2014 to January 1, 2019.

The earned income tax credit allows individuals claiming the federal earned income tax credit under IRC Section 32 to receive a credit against North Carolina tax equal to 5% of their federal credit amount.

The credit is refundable, meaning excess credits beyond tax liability are refunded to taxpayers through normal overpayment procedures.

Nonresidents and part-year residents must reduce their credit amount by a proportional fraction based on their income allocation to North Carolina.