North Carolina HB 316: Child Care Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 316

Short Title: Child Care Act. (Public)
Sponsors: Representatives Logan, G. Brown, Lopez, and G. Pierce (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
March 10, 2025
*H316-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO REENACT THE NORTH CAROLINA CHILD TAX CREDIT, TO EXPAND 2
THE NORTH CAROLINA PREKINDERGARTEN (NC PRE-K) PROGRAM AND 3
INCREASE CARE SUBSIDY BY APPROPRIATING FUNDS FOR THOSE PURPOSES, 4
TO PROVIDE LUNCH IN PUBLIC SCHOOLS AT NO COST TO STUDENTS 5
THROUGH AN ALLOCATION BASED ON SCHOOL FOOD AUTHORITY 6
EVALUATIONS, TO APPROPRIATE FUNDS FOR PUBLIC CHILD CARE PROVIDED 7
BY COMMUNITY COLLEGES, AND TO REQUIRE A REPORT ON THE FEASIBILITY 8
AND ADVISABILITY OF A HIGH SCHOOL CHILD CARE APPRENTICESHIP 9
PROGRAM. 10
The General Assembly of North Carolina enacts: 11
12
PART I. NC CHILD TAX CREDIT 13
SECTION 1.1. G.S. 105-151.11 is reenacted as it existed immediately before its 14
expiration, is recodified as G.S. 105-153.12, and reads as rewritten: 15
"§ 105-153.12. Credit for child care and certain employment-related expenses. 16
(a) Credit. – A person who is allowed a credit against federal income tax for a percentage 17
of employment-related expenses under section 21 of the Code shall be allowed as a credit against 18
the tax imposed by this Part an amount equal to the applicable percentage of the 19
employment-related expenses as defined in section 21(b)(2) of the Code. In order to claim the 20
credit allowed by this section, the taxpayer must provide with the tax return the information 21
required by the Secretary. 22
(a1) Applicable Percentage. – For employment-related expenses that are incurred only 23
with respect to one or more dependents who are seven 18 years old or older up to 25 years old 24
and are not physically or mentally incapable of caring for themselves, the applicable percentage 25
is the appropriate percentage in the column labeled "Percentage A" in the table below, based on 26
the taxpayer's adjusted gross income determined under the Code. For employment-related 27
expenses that are incurred only with respect to one or more dependents who are 12 years old up 28
to 18 years old and are not physically or mentally incapable of caring for themselves, the 29
applicable percentage is the appropriate percentage in the column labeled "Percentage B" in the 30
table below, based on the taxpayer's adjusted gross income determined under the Code. For 31
employment-related expenses that are incurred only with respect to one or more dependents who 32
are 6 years old up to 12 years old and are not physically or mentally incapable of caring for 33
themselves, the applicable percentage is the appropriate percentage in the column labeled 34
"Percentage C" in the table below, based on the taxpayer's adjusted gross income determined 35

General Assembly Of North Carolina Session 2025
Page 2 House Bill 316-First Edition
under the Code. For employment-related expenses with respect to any other qualifying 1
individual, the applicable percentage is the appropriate percentage in the column labeled 2
"Percentage B" D" in the table below, based on the taxpayer's adjusted gross income determined 3
under the Code. 4
Filing Status Adjusted Gross Percentage A Percentage B Percentage C Percentage D 5
Income 6
7
Head of Up to $20,000 9%7% 13%9% 11% 13% 8
Household 9
Over $20,000 10
up to $32,000 8%6.3% 11.5%8% 9.8% 11.5% 11
12
Over $32,000 7%5.5% 10%7% 8.5% 10% 13
14
Surviving 15
Spouse or 16
Joint Return Up to $25,000 9%7% 13%9% 11% 13% 17
18
Over $25,000 19
up to $40,000 8%6.3% 11.5%8% 9.8% 11.5% 20
21
Over $40,000 7%5.5% 10%7% 8.5% 10% 22
23
Single Up to $15,000 9%7% 13%9% 11% 13% 24
25
Over $15,000 26
up to $24,000 8%6.3% 11.5%8% 9.8% 11.5% 27
28
Over $24,000 7%5.5% 10%7% 8.5% 10% 29
30
Married 31
Filing 32
Separately Up to $12,500 9%7% 13%9% 11% 13% 33
34
Over $12,500 35
up to $20,000 8%6.3% 11.5%8% 9.8% 11.5% 36
37
Over $20,000 7%5.5% 10%7% 8.5% 10% 38
(b) Employment Related Expenses. – The amount of employment-related expenses for 39
which a credit may be claimed may not exceed three thousand dollars ($3,000) if the taxpayer's 40
household includes one qualifying individual, as defined in section 21(b)(1) of the Code, and 41
may not exceed six thousand dollars ($6,000) if the taxpayer's household includes more than one 42
qualifying individual. The amount of employment-related expenses for which a credit may be 43
claimed is reduced by the amount of employer-provided dependent care assistance excluded from 44
gross income. 45
(c) Limitations. – A nonresident or part-year resident who claims the credit allowed by 46
this section shall reduce the amount of the credit by multiplying it by the fraction calculated under 47
G.S. 105-134.5(b) or (c), G.S. 105-153.4(b) or (c), as appropriate. No credit shall be allowed 48
under this section for