NC S480

Creates a tax credit for taxpayers who claim qualifying relatives as dependents under federal tax law, with credit amounts of $3,000 for veteran dependents and $1,500 for other qualifying relatives.

Establishes adjusted gross income limits that vary by filing status: $150,000 for married filing jointly/surviving spouse, $112,500 for head of household, and $75,000 for single and married filing separately filers.

Requires nonresident or part-year residents to reduce the credit by multiplying it by a fraction calculated under existing state tax law provisions.

Limits the credit to the amount of state tax owed for the year, reduced by all other allowable credits except tax payments made on behalf of the taxpayer.

Takes effect for taxable years beginning on or after January 1, 2023.