NC H1211

Updates North Carolina's Internal Revenue Code reference from January 1, 2019 to May 1, 2020 to incorporate federal tax law changes including CARES Act provisions.

Allows taxpayers to deduct business expenses that resulted in forgiveness of a Paycheck Protection Program (PPP) covered loan under section 1106 of the CARES Act and exclude the forgiven loan amount from gross income.

Modifies tax treatment of qualified tuition and related expenses, discharge of qualified principal residence indebtedness, and mortgage interest deductions to apply through taxable year 2020 instead of ending in 2017.

Establishes decoupling adjustments for various CARES Act provisions including net operating loss carryback rules, excess business loss limitations, business interest deductions, employer-paid student loan payments, and charitable contributions for taxable year 2020.

Allows taxpayers to deduct 20% annually from 2021-2025 of certain additions made in prior years related to net operating losses and excess business losses.