NC H1138

Reenacts North Carolina's state-level child tax credit for taxpayers who claim a federal child tax credit under Section 24 of the Internal Revenue Code.

Provides tiered credit amounts based on filing status and adjusted gross income, ranging from $250 per qualifying child (for lower-income filers) to $0 for higher-income brackets over $100,000 (married filing jointly), $80,000 (head of household), or $50,000 (single and married filing separately).

Credit is partially refundable—if the credit exceeds state tax liability after all other credits, the excess amount is refunded to the taxpayer following overpayment refund procedures.

Married couples filing separately cannot collectively claim more credit than allowed under a joint return filing status.

Effective for taxable years beginning on or after January 1, 2022.