AN ACT to allow enlisted members of the north carolina national guard with a rank of E‑1 through E‑5 who reside in north carolina to deduct their federal basic pay from the income tax.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105‑153.5(b) is amended by adding a new subdivision to read:

(17)    The total amount of federal basic pay under Title 37 of the United States Code received by an enlisted member of the Army National Guard or the Air National Guard who holds the rank of E‑1, E‑2, E‑3, E‑4, or E‑5 and who resides in North Carolina.

SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2025.