NC H459

Sets North Carolina's individual income tax rate at a flat 4.25% for taxable years beginning on or after January 1, 2025, eliminating the previously scheduled automatic reduction to 3.99% after 2025

Removes the existing revenue-based trigger mechanism that would have allowed automatic tax rate reductions starting in FY 2025-2026

Reinstates a modified rate reduction trigger beginning in FY 2027-2028, allowing 0.50 percentage point decreases when General Fund revenue exceeds specified thresholds (starting at $34.76 billion), with a floor rate of 2.49%

Cites Hurricane Helene (September 2024, $59.6 billion in estimated state damage) and Hurricane Florence (September 2018) as justification for delaying the tax rate reductions

Delays potential future tax cuts by two years compared to prior law, with the first possible trigger-based reduction applying to tax year 2029 instead of 2027