North Carolina HB 1076: Restore Earned Income Tax Credit.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 1076

Short Title: The Innovations Waitlist Reduction Act. (Public)
Sponsors: Representatives Crawford, Hawkins, Prather, and Alston (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
April 29, 2026
*H1076-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO EXPAND INNOVATIONS WAIVER ACCESS AND TO REVISE ELIGIBILITY 2
REQUIREMENTS FOR THE OPPORTUNITY SCHOLARSHIP PROGRAM TO FOCUS 3
ON FAMILIES WITH THE GREATEST NEED. 4
The General Assembly of North Carolina enacts: 5
6
PART I. INCREASE NORTH CAROLINA INNOVATIONS WAIVER SLOTS 7
SECTION 1.(a) The Department of Health and Human Services, Division of Health 8
Benefits (DHB), shall amend the North Carolina Innovations waiver to increase the number of 9
waiver slots available under the waiver by 6,635 slots. These additional slots shall be made 10
available on July 1, 2026, or as soon as practicable after that date. 11
SECTION 1.(b) There is appropriated from the General Fund to the Department of 12
Health and Human Services, Division of Health Benefits (DHB), the sum of two hundred forty 13
million dollars ($240,000,000) in recurring funds and associated receipts beginning with the 14
2026-2027 fiscal year to be used to fund these additional slots. 15
SECTION 1.(c) This section is effective July 1, 2026. 16
17
PART II. REVISE ELIGIBILITY REQUIREMENTS AND REDUCE FUNDS FOR THE 18
OPPORTUNITY SCHOLARSHIP PROGRAM 19
SECTION 2.(a) G.S. 115C-562.1(3a) reads as rewritten: 20
"(3a) Eligible student. – A student residing in North Carolina who has not yet 21
received a high school diploma and who meets all of the following 22
requirements: 23
a. Is eligible to attend a North Carolina public school pursuant to Article 24
25 of this Chapter. A child who is the age of 4 on or before April 16 is 25
eligible to attend the following school year if the principal, or 26
equivalent, of the school in which the child seeks to enroll finds that 27
the student meets the requirements established by the Authority 28
pursuant to G.S. 115C-562.2(d) and those findings are submitted to the 29
Authority. 30
b. Has not been enrolled in a postsecondary institution as a full-time 31
student taking at least 12 hours of academic credit. 32
c. Has not been placed in a nonpublic school or facility by a public 33
agency at public expense. 34

General Assembly Of North Carolina Session 2025
Page 2 House Bill 1076-First Edition
d. Resides in a household with an income level not in excess of two 1
hundred percent (200%) of the amount required for the student to 2
qualify for the federal free or reduced-price lunch program." 3
SECTION 2.(b) G.S. 115C-562.2 reads as rewritten: 4
"§ 115C-562.2. Scholarship grants. 5
(a) The Authority shall make available no later than February 1 annually applications to 6
eligible students for the award of scholarship grants to attend any nonpublic school on a full- or 7
part-time basis. Information about scholarship grants and the application process shall be made 8
available on the Authority's website. Beginning March 15, the Authority shall begin awarding 9
scholarship grants to students who have applied by March 1 in the following order: 10
(1) Eligible students who received a scholarship grant for the school year prior to 11
the school year for which the students are applying. 12
(2) Eligible students qualifying for a scholarship grant in the amount provided 13
under subdivision (1) of subsection (b2) of this section. 14
(3) Eligible students qualifying for a scholarship grant in the amount provided 15
under subdivision (2) of subsection (b2) of this section. 16
(4) Eligible students qualifying for a scholarship grant in the amount provided 17
under subdivision (3) of subsection (b2) of this section. 18
(5) All other students. 19
... 20
(b2) Scholarship grants shall be awarded to eligible students as follows: 21
(1) For students residing in households with an income level not in excess of the 22
amount required for the student to qualify for the federal free or reduced-price 23
lunch program, per year per eligible student, an amount of up to one hundred 24
percent (100%) of the average State per pupil allocation for average daily 25
membership in the prior fiscal year. 26
(2) For students residing in households with an income level between the amount 27
required for the student to qualify for the federal free or reduced-price lunch 28
program and not in excess of two hundred percent (200%) of that amount, per 29
year per eligible student, an amount of up to ninety percent (90%) of the 30
average State per pupil allocation for average daily membership in the prior 31
fiscal year. 32
(3) For students residing in households with an income level of between two 33
hundred percent (200%) of the amount required for the student to qualify for 34
the federal free or reduced-price lunch program and not in excess of f