NC H61

Allows small business owners to exclude up to $50,000 of net business income from North Carolina state income tax for each taxable year.

Married couples filing jointly where both spouses receive net business income can each exclude up to $50,000, for a combined maximum exclusion of $100,000.

Defines "small business" as a business whose annual receipts, combined with related persons' receipts, do not exceed $1,000,000 for the taxable year.

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

Effective for taxable years beginning on or after January 1, 2017.