H.B. 1138
GENERAL ASSEMBLY OF NORTH CAROLINA
May 26, 2022
SESSION 2021 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH40773-NIf-20
Short Title: Child Tax Credit. (Public)
Sponsors: Representative Lofton.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO REENACT A STATE-LEVEL CHILD TAX CREDIT.
3 The General Assembly of North Carolina enacts:
4 SECTION 1. G.S. 105-153.10 is reenacted as it existed immediately before its
5 expiration and reads as rewritten:
6 "(a) Credit. – A taxpayer who is allowed a federal child tax credit under section 24 of the
7 Code for the taxable year is allowed a credit against the tax imposed by this Part for each
8 dependent child for whom the taxpayer is allowed the federal credit. A taxpayer is allowed a
9 credit against the tax imposed by this Part for each qualifying child of the taxpayer. A "qualifying
10 child" is defined by Section 152(c) of the Code. The amount of credit allowed under this section
11 for the taxable year is equal to the amount listed in the table below based on the taxpayer's
12 adjusted gross income, as calculated under the Code:
13 Filing Status AGI Credit Amount
14 Married, filing jointly Up to $40,000 $125.00$250.00
15 Over $40,000
16 Up to $100,000 $100.00$125.00
17 Over $100,000 0
18
19 Head of Household Up to $32,000 $125.00$250.00
20 Over $32,000
21 Up to $80,000 $100.00$125.00
22 Over $80,000 0
23
24 Single Up to $20,000 $125.00$250.00
25 Over $20,000
26 Up to $50,000 $100.00$125.00
27 Over $50,000 0
28
29 Married, filing separately Up to $20,000 $125.00$250.00
30 Over $20,000
31 Up to $50,000 $100.00$125.00
32 Over $50,000 0.
33
34 (b) Limitations. – A nonresident or part-year resident who claims the credit allowed by
35 this section shall reduce the amount of the credit by multiplying it by the fraction calculated under
36 G.S. 105-134.5(b) or (c), as appropriate. G.S. 105-153.4. The credit allowed under this section
*DRH40773-NIf-20*
 General Assembly Of North Carolina Session 2021
1 may not exceed the amount of tax imposed by this Part for the taxable year reduced by the sum
2 of all credits allowed, except payments of tax made by or on behalf of the taxpayer. Married
3 individuals qualifying for a credit under this section who file separate returns may not collectively
4 claim more than the maximum credit allowed under a joint return.
5 (c) Credit Refundable. – If the credit allowed by this section exceeds the amount of tax
6 imposed by this Part for the taxable year reduced by the sum of all credits allowable, the Secretary
7 must refund the excess to the taxpayer. The refundable excess is governed by the provisions
8 governing a refund of an overpayment by the taxpayer of the tax imposed in this Part. In
9 computing the amount of tax against which multiple credits are allowed, nonrefundable credits
10 are subtracted before refundable credits."
11 SECTION 2. This act is effective for taxable years beginning on or after January 1,
12 2022.
Page 2 DRH40773-NIf-20


Statutes affected:
Filed: 105-153.10
Edition 1: 105-153.10