AN ACT to reenact the child tax credit.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105‑153.10 is reenacted as it existed immediately before its expiration and reads as rewritten:

§ 105‑153.10.  Credit for children.

(a)        Credit. – A taxpayer who is allowed a federal child tax credit under section 24 of the Code for the taxable year is allowed a credit against the tax imposed by this Part for each dependent child for whom the taxpayer is allowed the federal credit. A taxpayer is allowed a credit against the tax imposed by this Part for each qualifying child of the taxpayer. A qualifying child is defined by section 152(c) of the Code. The amount of credit allowed under this section for the taxable year is equal to the amount listed in the table below based on the taxpayer's adjusted gross income, as calculated under the Code:

Filing Status                                       AGI                                    Credit Amount

Married, filing jointly                   Up to $40,000                               $125.00$250.00

                                                      Over $40,000

                                                      Up to $100,000                             $100.00$125.00

                                                      Over $100,000                                    0

Head of Household                       Up to $32,000                               $125.00$250.00

                                                      Over $32,000

                                                      Up to $80,000                               $100.00$125.00

                                                      Over $80,000                                      0

Single                                            Up to $20,000                               $125.00$250.00

                                                      Over $20,000

                                                      Up to $50,000                               $100.00$125.00

                                                      Over $50,000                                      0

Married, filing separately              Up to $20,000                               $125.00$250.00

                                                      Over $20,000

                                                      Up to $50,000                               $100.00$125.00

                                                      Over $50,000                                      0.

(b)        Limitations. – A nonresident or part‑year resident who claims the credit allowed by this section shall reduce the amount of the credit by multiplying it by the fraction calculated under G.S. 105‑134.5(b) or (c), as appropriate. The credit allowed under this section may not exceed the amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowed, except payments of tax made by or on behalf of the taxpayer.G.S. 105‑153.4. Married individuals qualifying for a credit under this section who file separate returns may not collectively claim more than the maximum credit allowed under a joint return.

(c)        Credit Refundable. – If the credit allowed by this section exceeds the amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowable, the Secretary must refund the excess to the taxpayer. The refundable excess is governed by the provisions governing a refund of an overpayment by the taxpayer of the tax imposed in this Part. In computing the amount of tax against which multiple credits are allowed, nonrefundable credits are subtracted before refundable credits.

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