CCH Tax Day Report
The North Carolina Senate has passed a budget bill that incorporates a number of corporate income and personal income tax changes from a previous bill (TAXDAY, 2017/04/07, S.14), including a requirement that corporate income taxpayers use market-based sourcing rules for apportioning business income to North Carolina, reductions in the corporate and personal income tax rates, an increase in the personal income tax standard deduction, a new child tax deduction based on a taxpayer’s adjusted gross income and filing status, and a cap on the mortgage interest deduction based on a taxpayer’s filing status. The legislation would also lower the franchise tax on S corporations with a tax base of $1 million or less.
S.B. 257, as passed North Carolina Senate on May 12, 2017