NC H505

Allows small business owners to deduct up to $25,000 of net business income from North Carolina taxable income if they have combined annual receipts of $800,000 or less.

For married couples filing jointly where both spouses receive net business income, each spouse can claim the deduction separately, with a combined maximum of $50,000.

Excludes passive income from the definition of deductible business income.

Effective for taxable years beginning on or after January 1, 2015.