AN ACT to allow a state income tax deduction for gambling losses.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105‑153.5(a)(2) reads as rewritten:

(a)      Deduction Amount. – In calculating North Carolina taxable income, a taxpayer may deduct from adjusted gross income either the standard deduction amount provided in subdivision (1) of this subsection or the itemized deduction amount provided in subdivision (2) of this subsection. The deduction amounts are as follows:

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(2)        Itemized deduction amount. – An amount equal to the sum of the items listed in this subdivision. The amounts allowed under this subdivision are not subject to the overall limitation on itemized deductions under section 68 of the Code:

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e.         The amount allowed as a deduction for wagering losses under section 165(d) of the Code, to the extent the losses are not deducted in arriving at adjusted gross income.

SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2024.