FILED SENATE
May 2, 2024
GENERAL ASSEMBLY OF NORTH CAROLINA
S.B. 878
SESSION 2023 PRINCIPAL CLERK
S D
SENATE BILL DRS45449-LRfa-149
Short Title: Working Families Act. (Public)
Sponsors: Senators Grafstein, Batch, and Garrett (Primary Sponsors).
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT REDUCING PARENT COPAYMENTS FOR SUBSIDIZED CHILD CARE,
3 REENACTING THE CHILD TAX CREDIT, INCREASING THE STATE MINIMUM
4 WAGE TO FIFTEEN DOLLARS PER HOUR ON LABOR DAY 2024 AND GRANTING
5 LOCAL GOVERNMENTS FLEXIBILITY TO SET A HIGHER LOCAL MINIMUM
6 WAGE, INCREASING THE INCOME ELIGIBILITY LIMIT FOR THE PROPERTY TAX
7 HOMESTEAD CIRCUIT BREAKER, CREATING A HOMEBUYERS' ASSISTANCE
8 PROGRAM WITH THE NORTH CAROLINA HOUSING FINANCE AGENCY FOR
9 FIRST-TIME HOMEBUYERS WHO WORK AS PUBLIC SERVANTS, AND ENACTING
10 THE NORTH CAROLINA PAID FAMILY LEAVE INSURANCE ACT TO HELP
11 WORKING FAMILIES AND CREATING THE EMPLOYER GRANT FUND TO OFFSET
12 COSTS INCURRED BY EMPLOYERS AND APPROPRIATING FUNDS FOR THAT
13 PURPOSE.
14 The General Assembly of North Carolina enacts:
15
16 CHILD CARE SUBSIDIES
17 SECTION 1.1.(a) Section 9D.3(b) of S.L. 2023-134 reads as rewritten:
18 "SECTION 9D.3.(b) Fees for families who are required to share in the cost of care are
19 established based on ten percent (10%)seven percent (7%) of gross family income. When care is
20 received at the blended rate, the copayment shall be eighty-three percent (83%) of the full-time
21 copayment. Copayments for part-time care shall be seventy-five percent (75%) of the full-time
22 copayment."
23 SECTION 1.1.(b) This section becomes effective July 1, 2024.
24
25 REENACT CHILD TAX CREDIT
26 SECTION 2.1.(a) G.S. 105-153.10 is reenacted as it existed immediately before its
27 expiration and reads as rewritten:
28 "§ 105-153.10. Credit for children.
29 (a) Credit. – A taxpayer who is allowed a federal child tax credit under section 24 of the
30 Code for the taxable year is allowed a credit against the tax imposed by this Part for each
31 dependent child for whom the taxpayer is allowed the federal credit. A taxpayer is allowed a
32 credit against the tax imposed by this Part for each qualifying child of the taxpayer. A "qualifying
33 child" is defined by section 152(c) of the Code. The amount of credit allowed under this section
34 for the taxable year is equal to the amount listed in the table below based on the taxpayer's
35 adjusted gross income, as calculated under the Code:
36 Filing Status AGI Credit Amount
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 General Assembly Of North Carolina Session 2023
1 Married, filing jointly Up to $40,000 $125.00$250.00
2 Over $40,000
3 Up to $100,000 $100.00$125.00
4 Over $100,000 0
5
6 Head of Household Up to $32,000 $125.00$250.00
7 Over $32,000
8 Up to $80,000 $100.00$125.00
9 Over $80,000 0
10
11 Single Up to $20,000 $125.00$250.00
12 Over $20,000
13 Up to $50,000 $100.00$125.00
14 Over $50,000 0
15
16 Married, filing separately Up to $20,000 $125.00$250.00
17 Over $20,000
18 Up to $50,000 $100.00$125.00
19 Over $50,000 0.
20
21 (b) Limitations. – A nonresident or part-year resident who claims the credit allowed by
22 this section shall reduce the amount of the credit by multiplying it by the fraction calculated under
23 G.S. 105-134.5(b) or (c), as appropriate.The credit allowed under this section may not exceed the
24 amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowed,
25 except payments of tax made by or on behalf of the taxpayer.G.S. 105-153.4. Married individuals
26 qualifying for a credit under this section who file separate returns may not collectively claim
27 more than the maximum credit allowed under a joint return.
28 (c) Credit Refundable. – If the credit allowed by this section exceeds the amount of tax
29 imposed by this Part for the taxable year reduced by the sum of all credits allowable, the Secretary
30 must refund the excess to the taxpayer. The refundable excess is governed by the provisions
31 governing a refund of an overpayment by the taxpayer of the tax imposed in this Part. In
32 computing the amount of tax against which multiple credits are allowed, nonrefundable credits
33 are subtracted before refundable credits."
34 SECTION 2.1.(b) This section is effective for taxable years beginning on or after
35 January 1, 2025.
36
37 INCREASE STATEWIDE MINIMUM WAGE AND ALLOW HIGHER LOCAL
38 MINIMUM WAGE
39 SECTION 3.1.(a) Effective Labor Day, September 2, 2024, G.S. 95-25.3(a) reads
40 as rewritten:
41 "(a) Every employer shall pay to each employee who in any workweek performs any work,
42 wages of at least six dollars and fifteen cents ($6.15) fifteen dollars ($15.00) per hour or the
43 minimum wage set forth in paragraph 1 of section 6(a) of the Fair Labor Standards Act, 29 U.S.C.
44 206(a)(1), as that wage may change from time to time, whichever is higher, except as otherwise
45 provided in this section. A local government may adopt an ordinance establishing a local
46 minimum wage within its territorial jurisdiction that is higher than the statewide minimum wage;
47 then, in that case, every employer in the jurisdiction shall instead pay the higher local minimum
48 wage."
49 SECTION 3.1.(b) This section is effective when it becomes law.
50
51 INCOME ELIGIBILITY/PROPERTY TAX HOMESTEAD CIRCUIT BREAKER
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1 SECTION 4.1.(a) G.S. 105-277.1B reads as rewritten:
2 "§ 105-277.1B. Property tax homestead circuit breaker.
3 (a) Classification. – A permanent residence owned and occupied by a qualifying owner
4 is designated a special class of property under Article V, Section 2(2) of the North Carolina
5 Constitution and is taxable in accordance with this section.
6 …
7 (f) Tax Limitation. – A qualifying owner may defer the portion of the principal amount
8 of tax that is imposed for the current tax year on his or her permanent residence and exceeds the
9 percentage of the qualifying owner's income set out in the table in this subsection. If a permanent
10 residence is subject to tax by more than one taxing unit and the total tax liability exceeds the tax
11 limit imposed by this section, then both the taxes due under this section and the taxes deferred
12 under this section must be apportioned among the taxing units based upon the ratio each taxing
13 unit's tax rate bears to the total tax rate of all units.
14 Income Over Income Up To Percentage
15 -0- Income Eligibility Limit 4.0%
16 Income Eligibility Limit 150% 180% of Income Eligibility Limit 5.0%
17 …."
18 SECTION 4.1.(b) This section is effective for taxes imposed for taxable years
19 beginning on or after July 1, 2025.
20
21 HOMEBUYERS' ASSISTANCE PROGRAM
22 SECTION 5.1.(a) As used in this section, the following definitions apply:
23 (1) Active duty member. – As defined in G.S. 58-58-335(1).
24 (2) Emergency medical services personnel. – As defined in G.S. 131E-155.
25 (3) Firefighter. – As defined in G.S. 58-84-5.
26 (4) First-time homebuyer. – An individual who meets all of the following criteria:
27 a. Is purchasing the subject residential property.
28 b. Will reside in the subject residential property as a principal residence.
29 c. Has had no ownership interest, sole or joint, in a residential property
30 during the three-year period preceding the date of the purchase of the
31 subject residential property.
32 (5) Law enforcement officer. – An individual employed by the State or a local
33 government in this State as a sheriff, deputy sheriff, police officer, or member
34 of the State highway patrol.
35 (6) Public servant. – An active duty member or veteran, or a law enforcement
36 officer, teacher, firefighter, or emergency medical services personnel
37 employed in this State.
38 (7) Teacher. – An individual whose major responsibility is to either teach or
39 directly supervise teaching, as classified by the State Board of Education, in a
40 public school unit, as that term is defined in G.S. 115C-5.
41 (8) Veteran. – As defined in G.S. 122C-465(3).
42 SECTION 5.1.(b) The Housing Finance Agency (Agency) shall establish a program
43 operating under the Homeownership Assistance Fund, authorized under G.S. 122A-5.7, that
44 provides assistance to first-time homebuyers that are employed full time as public servants in this
45 State. The Agency shall provide, in the form of reimbursement or direct payment, monies to be
46 used for down payment assistance and to offset mortgage insurance premiums charged to
47 program participants. First-time homebuyers shall be limited to the lesser of the sum of
48 twenty-five thousand dollars ($25,000) or ten percent (10%) of the purchase price for down
49 payment assistance, mortgage insurance premium assistance, and closing costs. The Agency may
50 provide for mortgage insurance payment assistance at least monthly, but for no longer than 60
51 months for any single first-time homebuyer.
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1 SECTION 5.1.(c) The Agency is hereby empowered to adopt, modify, or repeal
2 rules and regulations governing the provision of down payment assistance and mortgage
3 insurance assistance provided pursuant to this section.
4 SECTION 5.1.(d) There is appropriated from the General Fund to the
5 Homeownership Assistance Fund, authorized under G.S. 122A-5.7, the sum of one hundred fifty
6 million dollars ($150,000,000) in recurring funds for the 2024-2025 fiscal year to be used for the
7 purposes provided in this act.
8 SECTION 5.1.(e) This section becomes effective July 1, 2024.
9
10 PAID FAMILY LEAVE INSURANCE
11 SECTION 6.1.(a) Effective January 1, 2025, the General Statutes are amended by
12 adding a new Chapter to read:
13 "Chapter 96A.
14 "Paid Family Leave Insurance Act.
15 "§ 96A-1. Short title; definitions.
16 (a) This Chapter shall be known and may be cited as the "North Carolina Paid Family
17 Leave Insurance Act."
18 (b) The following definitions apply in this Chapter:
19 (1) Application year. – The 12-month period beginning on the first day of the
20 calendar week in which an individual files an application for family and
21 medical leave insurance benefits.
22 (2) Assistant Secretary. – The Assistant Secretary of Commerce in charge of the
23 Division of Employment Security.
24 (3) Covered individual. – Any person who does all of the following:
25 a. Meets the monetary eligibility criteria set forth in G.S. 96-14.1(b) or
26 is self-employed, elects coverage, and meets the requirements of
27 G.S. 96A-13.
28 b. Meets the administrative requirements outlined in this Chapter and in
29 the rules adopted under this Chapter.
30 c. Submits an application.
31 (4) Covered service member. – Either:
32 a. A member of the Armed Forces, including a member of the National
33 Guard or Reserves, who is (i) undergoing medical treatment,
34 recuperation, or therapy, (ii) otherwise in outpatient status, or (iii)
35 otherwise on the temporary disability retired list for a serious injury or
36 illness that was incurred by the member in the line of duty on active
37 duty in the Armed Forces or a serious injury or illness that existed
38 before the beginning of the member's active duty and was aggravated
39 by service in the line of duty on active duty in the Armed Forces; or
40 b. A former member of the Armed Forces, including a former member of
41 the National Guard or Reserves, who is undergoing medical treatment,
42 recuperation, or therapy for a serious injury or illness that was incurred
43 by the member in the line of duty on active duty in the Armed Forces
44 or a serious injury or illness that existed before the beginning of the
45 member's active duty and was aggravated by service in the line of duty
46 on active duty in the Armed Forces and manifested before or after the
47 member was discharged or released from service.
48 (5) Division. – The Division of Employment Security of the Department of
49 Commerce.
50 (6) Employee. – Any individual employed by an employer.
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1 (7) Employer. – Any person acting directly or indirectly in the interest of an
2 employer in relation to an employee. As used in this subdivision, "person"
3 means an individual, partnership, association, corporation, business trust,
4 legal representative, or any organized group of persons. For the purposes of
5 this Chapter, it also means the State of North Carolina, any city, town, county,
6 municipality, or any State or local agency or instrumentality of government.
7 The term does not include the government of the United States and any agency
8 of the United States (including the United States Postal Service and Postal
9 Rate Commission).
10 (8) Family and medical leave insurance benefits. – The benefits provided under
11 the terms of this Chapter.
12 (9) Family member. – Any of the following:
13 a. Regardless of age, a biological, adopted, or foster child, stepchild, or
14 legal ward, a child of a domestic partner, a child to whom the employee
15 stands in loco parentis, or a person to whom the employee stood in
16 loco parentis when the person was a minor.
17 b. A biological, adoptive, or foster parent, stepparent, or legal guardian
18 of an employee or an employee's spouse or domestic partner or a
19 person who stood in loco parentis when the employee or the
20 employee's spouse or domestic partner was a minor.
21 c. A person to whom the employee is legally married under the laws of
22 any state or a domestic partner of an employee as registered under the
23 laws of any state or political subdivision.
24 d. A grandparent, grandchild, or sibling (whether a biological, foster,
25 adoptive, or step relationship) of the employee or the employee's
26 spouse or domestic partner.
27 e. Any other individual related by blood or whose close association with
28 the employee is the equivalent of a family relationship.
29 (10) Health care provider. – Any person licensed under federal or North