NC H181

Reenacts North Carolina's state Earned Income Tax Credit (EITC), which expired after taxable year 2013

Sets the state credit at 20% of the federal EITC amount claimed under Internal Revenue Code Section 32, an increase from the previous 5% rate

Makes the credit fully refundable, meaning taxpayers receive the excess as a refund if the credit exceeds their tax liability

Requires nonresidents and part-year residents to prorate the credit based on their North Carolina income fraction

Effective for taxable years beginning on or after January 1, 2025