NC H384

Enlisted Army and Air National Guard members ranked E-1 through E-5 may deduct 100% of their federal basic pay (under Title 37, U.S. Code) from North Carolina state income tax, effective for taxable years beginning on or after January 1, 2025

Reduces sports wagering tax proceeds allocated to the North Carolina Major Events, Games, and Attractions Fund from 30% to 29% annually

Increases sports wagering tax proceeds directed to the General Fund from 50% to all remaining proceeds not otherwise credited (approximately 51%)

Maintains the existing 20% allocation of sports wagering proceeds distributed equally among 13 UNC System institutions for collegiate athletic departments

Sports wagering tax reallocation effective July 1, 2025, applying to net proceeds credited on or after that date