NC H329

Creates an income tax credit of $1,250 per semester for taxpayers with eligible dependent children enrolled in qualifying home schools.

Defines a semester as more than 70 days of enrollment during either the spring (first six months) or fall (second six months) of the taxable year, allowing up to $2,500 in annual credits per child.

Disqualifies children from the credit if they spent any time in public school, attended postsecondary institutions as full-time students, were 22 years or older during the entire semester, or graduated from high school before the semester ended.

Requires taxpayers to provide the child's name, address, Social Security number, attendance records, certification of non-disqualifying status, local school administrative unit information, and a copy of the Notice of Intent to Operate a Home School.

Allows unused credits to be carried forward for three succeeding years and requires the Department of Revenue to report to the legislature by October 1, 2019, on credit administration and taxpayer compliance; effective for taxable years beginning January 1, 2017.