Bill Summary – FastDemocracy

H.B. 464
                          GENERAL ASSEMBLY OF NORTH CAROLINA
                                                                                             Mar 30, 2021
                                      SESSION 2021                                     HOUSE PRINCIPAL CLERK
     H                                                                                                D
                                   HOUSE BILL DRH30211-MCf-174
     Short Title:   Home Education Tax Credit.                                                  (Public)
     Sponsors:      Representative Pittman.
     Referred to:
                                     A BILL TO BE ENTITLED
 AN ACT TO CREATE AN INCOME TAX CREDIT FOR CHILDREN WHO ARE HOME
      SCHOOLED.
 The General Assembly of North Carolina enacts:
             SECTION 1. Part 2 of Article 4 of Chapter 105 of the General Statutes is amended
 by adding a new section to read:
 "§ 105-153.11. Home school education credit.
      (a)    Credit. – A taxpayer is allowed a credit against the tax imposed by this Part for each
 of the taxpayer's eligible dependent children who is a resident of this State and who, for one or
 two semesters during the taxable year, is enrolled in a home school that meets the requirements
 of G.S. 115C-564. As used in this section, the term "eligible dependent child" means a child for
 whom the taxpayer is entitled to deduct a personal exemption under section 151(c) of the Code
 for the taxable year.
      (b)    Amount. – The credit is equal to one thousand two hundred fifty dollars ($1,250) per
 semester.
      (c)    Semesters. – For the purposes of this section, there are two semesters during each
 taxable year. The spring semester is the first six months of the taxable year, and the fall semester
 is the second six months of the taxable year. An eligible dependent child is enrolled in a home
 school for a semester if the eligible dependent child is enrolled in that home school for more than
 70 days during that semester.
      (d)    Disqualification. – A taxpayer may not qualify for a credit for any semester during
 which the taxpayer's eligible dependent child for whom the credit would otherwise be claimed
 met any of the following conditions:
             (1)     Spent any time enrolled in a public school.
             (2)     Spent any time enrolled as a full-time student taking at least 12 hours of
                     academic credit in a postsecondary educational institution.
             (3)     Was 22 years of age or older during the entire semester.
             (4)     Graduated from high school prior to the end of the semester.
      (e)    Information. – In order to claim the credit allowed by this section, the taxpayer shall
 provide, when requested, the following to the Secretary:
             (1)     The name, address, social security number, and attendance record, as required
                     by G.S. 115C-564, of each eligible dependent child for whom the credit is
                     claimed.
             (2)     The taxpayer's certification that the eligible dependent child did not meet any
                     of the disqualifying conditions set out in this section.
                                  *DRH30211-MCf-174*
     General Assembly Of North Carolina                                                    Session 2021
            (3)      The name of the local school administrative unit in which the eligible
                     dependent child resides.
             (4)     A copy of the Notice of Intent to Operate a Home School filed with the
                     Division of Nonpublic Education, Department of Administration.
     (f)     Credit Refundable. – If the credit allowed by this section exceeds the amount of tax
 imposed by this Part for the taxable year reduced by the sum of all credits allowable, the Secretary
 must refund the excess to the taxpayer. The refundable excess is governed by the provisions
 governing a refund of an overpayment by the taxpayer of the tax imposed in this Part. In
 computing the amount of tax against which multiple credits are allowed, nonrefundable credits
 are subtracted before refundable credits.
     (g)     No Other Requirements. – A home school attended by an eligible dependent child of
 the taxpayer who claims a credit under this section shall not be subject to any requirements other
 than those required by Part 3 of Article 39 of Chapter 115C of the General Statutes."
             SECTION 2. The Department of Revenue shall report to the Revenue Laws Study
 Committee and the Joint Legislative Education Oversight Committee on the administration of
 G.S. 105-153.11, as enacted by Section 1 of this act. The report is due by December 1, 2022, and
 shall include the following:
             (1)     The number and amount of credits taken under G.S. 105-153.11, itemized by
                     the local school administrative unit in which the eligible dependent children
                     reside.
             (2)     Any concerns relating to the administration of G.S. 105-153.11 or taxpayer
                     compliance with the requirements of that section.
             (3)     Any other matter with respect to G.S. 105-153.11 that the Department wishes
                     to address.
             SECTION 3. Sections 1 and 2 of this act are effective for taxable years beginning
 on or after January 1, 2021, and apply to semesters for which the credit is claimed beginning on
 or after July 1, 2021. The remainder of this act is effective when it becomes law.
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