AN ACT to repeal the corporate income tax phaseout.

Whereas, North Carolina has been consistently ranked as one of the top states for business; and

Whereas, North Carolina fosters a pro‑business environment, fueled by the lowest corporate income tax in the United States, out of all states that levy a corporate income tax; and

Whereas, North Carolina is still recovering from Hurricane Helene, one of the largest natural disasters in the State's history; and

Whereas, Hurricane Helene has left significant long‑term impacts to western North Carolina; and

Whereas, it is the public policy of the General Assembly to ensure that North Carolina has the funds needed to support a full and complete recovery while remaining a low corporate income tax state; Now, therefore,

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105‑130.3 reads as rewritten:

§ 105‑130.3.  Corporations.

A tax is imposed on the State net income of every C Corporation doing business in this State. State at the rate of two and one‑quarter percent (2.25%). An S Corporation is not subject to the tax levied in this section. The tax is a percentage of the taxpayer's State net income computed as follows:

Taxable Years Beginning                                                 Tax

In 2025                                                                              2.25%

In 2026                                                                              2%

In 2028                                                                              1%

After 2029                                                                         0%.

SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2026.