AN ACT to allow an income tax deduction for prescription drug expenses.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105‑153.5 reads as rewritten:

§ 105‑153.5.  Modifications to adjusted gross income.

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(b)        Other Deductions. – In calculating North Carolina taxable income, a taxpayer may deduct from the taxpayer's adjusted gross income any of the following items that are included in the taxpayer's adjusted gross income:

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(17)      An amount, not to exceed five thousand dollars ($5,000), of the total unreimbursed out‑of‑pocket expenditures for prescribed medications and pharmacy cost‑sharing, excluding any amounts covered by tax‑favored accounts such as a Flexible Spending Account or Health Savings Account. No deduction is allowed under this subdivision for any amount of prescribed medication or pharmacy cost‑sharing for which a deduction is claimed under sub‑subdivision (a)(2)c. of this section for the same taxable year.

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