NC S436

Creates a new North Carolina tax credit of $12,000 for taxpayers who claim a qualifying relative as a dependent under federal tax code, with an enhanced credit of $15,000 if the qualifying relative is a U.S. Armed Forces veteran.

Income eligibility limits are $150,000 AGI for married filing jointly/surviving spouse, $112,500 for head of household, and $75,000 for single or married filing separately.

Nonresidents and part-year residents must prorate the credit amount based on their North Carolina income fraction.

Credit cannot exceed the taxpayer's total tax liability for the year after applying all other credits except tax payments.

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