NC S641

Reenacts North Carolina's child tax credit as a refundable credit of $1,900 per qualifying child age 6 and under, and $1,600 per qualifying child over age 6

Credit phases out proportionally based on the income phase-out thresholds used for the federal earned income tax credit

Qualifying child is defined by federal tax code section 152(c), and taxpayers must be eligible for the federal child tax credit under section 24

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

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