NC H813

Allows North Carolina taxpayers to deduct retirement pay received from the United States government as a retired member of the Armed Forces of the United States from state taxable income.

Extends deduction eligibility to survivorship benefits received by survivors of active duty or retired members of the Armed Forces of the United States.

Prohibits deductions under the new Armed Forces retirement pay provision (subdivision 5a) from also being claimed under the existing court settlement deduction (subdivision 5).

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