AN ACT to eliminate the addback for business expenses deducted to the extent the payment results in forgiveness of a covered loan under the Federal CARES act for the 2020 taxable year only.

The General Assembly of North Carolina enacts:

SECTION 1.(a)  G.S. 105‑130.5(a)(32) is repealed.

SECTION 1.(b)  Effective for taxable years beginning on or after January 1, 2021, G.S. 105‑130.5(a)(32) is reenacted as it existed immediately before its repeal.

SECTION 2.(a)  G.S. 105‑153.5(c2)(20) is repealed.

SECTION 2.(b)  Effective for taxable years beginning on or after January 1, 2021, G.S. 105‑153.5(c2)(20) is reenacted as it existed immediately before its repeal.

SECTION 3.  Except as otherwise provided, this act is effective for taxable years beginning on or after January 1, 2020.