NC S236

Reenacts the child care tax credit in North Carolina General Statute 105-153.11, allowing taxpayers to claim a credit against state income tax for employment-related child care expenses based on a percentage of federal income tax credits under Section 21 of the Internal Revenue Code.

Establishes tiered tax credit percentages (7-13%) based on filing status and adjusted gross income, with higher percentages for families caring for children under seven or those with special needs (Percentage B) versus older children (Percentage A).

Limits claimable employment-related expenses to $3,000 for households with one qualifying individual and $6,000 for households with more than one qualifying individual, reduced by any employer-provided dependent care assistance.

Requires nonresident or part-year residents to reduce their credit claim proportionally and prohibits the credit for amounts already deducted from North Carolina taxable income.

Effective for taxable years beginning on or after January 1, 2019.