NC H940

Updates North Carolina's reference to the Internal Revenue Code from May 1, 2020 to April 1, 2021, including provisions that become effective before or after that date.

Extends the mortgage interest and property tax deduction cap of $20,000 through tax year 2021 (previously set to expire in 2020).

Extends decoupling adjustments for discharged principal residence indebtedness exclusions through 2025 (previously 2020).

Extends decoupling adjustments for employer-paid student loan payments through 2025 (previously 2020 only) and adds new decoupling for student loan discharge exclusions under the American Rescue Plan Act of 2021 through 2025.

Adds new decoupling adjustment for tax years 2021-2022 requiring taxpayers to add back excess deductions for restaurant food and beverage expenses under the Consolidated Appropriations Act, 2021.