NC H846

Allows small business owners to deduct up to $25,000 of net business income from North Carolina state taxable income if their combined annual receipts (including related persons) do not exceed $200,000.

For married couples filing jointly where both spouses receive net business income, each spouse may deduct up to $25,000 separately, for a combined maximum deduction of $50,000.

Excludes passive income from the definition of "business income" eligible for this deduction.

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