NC S455

Allows small business owners to deduct up to $75,000 of net business income from North Carolina taxable income, or $150,000 for married couples filing jointly where both spouses have business income

Defines "small business" as an independently owned and operated business with no more than 50 employees (including related persons) and annual revenues under $5,000,000

Excludes passive income from the definition of qualifying business income

Effective for taxable years beginning on or after January 1, 2026