NC S865

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

Provides tiered credit amounts based on filing status and adjusted gross income, ranging from $125 to $250 per qualifying child, with credits phasing out at higher income levels.

Makes the credit refundable, allowing the Secretary of Revenue to refund any excess credit amount to taxpayers if the credit exceeds their tax liability.

Requires nonresident or part-year residents to reduce the credit by a proportional fraction and prohibits married couples filing separately from collectively claiming more than the maximum joint return credit.

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