North Carolina SB 708: CPS Intake Screening/PED Recommendations.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 708

Short Title: Working Families Act. (Public)
Sponsors: Senators Applewhite, Grafstein, and Bradley (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S708-v-1*
A BILL TO BE ENTITLED 1
AN ACT REDUCING PARENT COPAYMENTS FOR SUBSIDIZED CHILD CARE, 2
REENACTING THE CHILD TAX CREDIT, INCREASING THE STATE MINIMUM 3
WAGE TO FIFTEEN DOLLARS PER HOUR ON LABOR DAY 2025 AND GRANTING 4
LOCAL GOVERNMENTS FLEXIBILITY TO SET A HIGHER LOCAL MINIMUM 5
WAGE, INCREASING THE INCOME ELIGIBILITY LIMIT FOR THE PROPERTY TAX 6
HOMESTEAD CIRCUIT BREAKER, CREATING A HOMEBUYERS' ASSISTANCE 7
PROGRAM WITH THE NORTH CAROLINA HOUSING FINANCE AGENCY FOR 8
FIRST-TIME HOMEBUYERS WHO WORK AS PUBLIC SERVANTS, AND ENACTING 9
THE NORTH CAROLINA PAID FAMILY LEAVE INSURANCE ACT TO HELP 10
WORKING FAMILIES AND CREATING THE EMPLOYER GRANT FUND TO OFFSET 11
COSTS INCURRED BY EMPLOYERS AND APPROPRIATING FUNDS FOR THAT 12
PURPOSE. 13
The General Assembly of North Carolina enacts: 14
15
CHILD CARE SUBSIDIES 16
SECTION 1.1.(a) Section 9D.3(b) of S.L. 2023-134 reads as rewritten: 17
"SECTION 9D.3.(b) Fees for families who are required to share in the cost of care are 18
established based on ten percent (10%) seven percent (7%) of gross family income. When care 19
is received at the blended rate, the copayment shall be eighty-three percent (83%) of the full-time 20
copayment. Copayments for part-time care shall be seventy-five percent (75%) of the full-time 21
copayment." 22
SECTION 1.1.(b) This act becomes effective July 1, 2025. 23
24
REENACT CHILD TAX CREDIT 25
SECTION 2.1.(a) G.S. 105-153.10 is reenacted as it existed immediately before its 26
expiration and reads as rewritten: 27
"§ 105-153.10. Credit for children. 28
(a) Credit. – A taxpayer who is allowed a federal child tax credit under section 24 of the 29
Code for the taxable year is allowed a credit against the tax imposed by this Part for each 30
dependent child for whom the taxpayer is allowed the federal credit. A taxpayer is allowed a 31
credit against the tax imposed by this Part for each qualifying child of the taxpayer. A "qualifying 32
child" is defined by section 152(c) of the Code. The amount of credit allowed under this section 33
for the taxable year is equal to the amount listed in the table below based on the taxpayer's 34
adjusted gross income, as calculated under the Code: 35
Filing Status AGI Credit Amount 36

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 708-First Edition
Married, filing jointly Up to $40,000 $125.00$250.00 1
Over $40,000 2
Up to $100,000 $100.00$125.00 3
Over $100,000 0 4
5
Head of Household Up to $32,000 $125.00$250.00 6
Over $32,000 7
Up to $80,000 $100.00$125.00 8
Over $80,000 0 9
10
Single Up to $20,000 $125.00$250.00 11
Over $20,000 12
Up to $50,000 $100.00$125.00 13
Over $50,000 0 14
15
Married, filing separately Up to $20,000 $125.00$250.00 16
Over $20,000 17
Up to $50,000 $100.00$125.00 18
Over $50,000 0. 19
20
(b) Limitations. – A nonresident or part-year resident who claims the credit allowed by 21
this section shall reduce the amount of the credit by multiplying it by the fraction calculated under 22
G.S. 105-134.5(b) or (c), as appropriate.The credit allowed under this section may not exceed the 23
amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowed, 24
except payments of tax made by or on behalf of the taxpayer.G.S. 105-153.4. Married individuals 25
qualifying for a credit under this section who file separate returns may not collectively claim 26
more than the maximum credit allowed under a joint return. 27
(c) Credit Refundable. – If the credit allowed by this section exceeds the amount of tax 28
imposed by this Part for the taxable year reduced by the sum of all credits allowable, the Secretary 29
must refund the excess to the taxpayer. The refundable excess is governed by the provisions 30
governing a refund of an overpayment by the taxpayer of the tax imposed in this Part. In 31
computing the amount of tax against which multiple credits are allowed, nonrefundable credits 32
are subtracted before refundable credits." 33
SECTION 2.1.(b) This section is effective for taxable years beginning on or after 34
January 1, 2025. 35
36
INCREASE STATEWIDE MINIMUM WAGE AND ALLOW HIGHER LOCAL 37
MINIMUM WAGE 38
SECTION 3.1.(a) Effective Labor Day, September 1, 2025, G.S. 95-25.3(a) reads 39
as rewritten: 40
"(a) Every employer shall pay to each employee who in any workweek performs any work, 41
wages of at least six dollars and fifteen cents ($6.15) fifteen dollars ($15.00) per hour or the 42
minimum wage set forth in paragraph 1 of section 6(a) of the Fair Labor Standards Act, 29 U.S.C. 43
206(a)(1), as that wage may change from time to time, whichever is higher, except as otherwise 44
provided in this section. A local government may adopt an ordinance establishing a local 45
minimum wage w