AN ACT to establish a grant program at north carolina community colleges to expand income tax assistance in the state.

Whereas, it is estimated that 180,000 North Carolina filers are eligible for the Federal Earned Income Tax Credit but do not claim the credit; and

Whereas, it is estimated that the average Earned Income Tax Credit is about $2,400 per filer; and

Whereas, the Internal Revenue Service (IRS) provides a federal program, the Volunteer Income Tax Assistance (VITA) program, for which grants are available. VITA provides for individuals who make below a certain income threshold per year to get their taxes done by an IRS certified individual for free, allowing them to take full advantage of every federal tax credit and return more of North Carolina's hard‑earned dollars to our citizens, putting more money into our economy; and

Whereas, community colleges can provide work‑based learning opportunities for students; Now, therefore,

The General Assembly of North Carolina enacts:

SECTION 1.  Program Established. – Within the funds appropriated in Section 4 of this act, the State Board of Community Colleges shall establish a grant program for participating community college campuses to offer courses to students to become tax preparers as part of the Volunteer Income Tax Assistance (VITA) program and to facilitate providing VITA services to all students on campus, as well as community members. The Internal Revenue Service (IRS) offers free tax help through VITA to (i) people who generally make fifty‑seven thousand dollars ($57,000) or less, (ii) persons with disabilities, and (iii) limited English‑speaking taxpayers who need assistance in preparing their own tax returns. The goal of the grant program shall be for community colleges to provide work‑based opportunities to students while facilitating access to the VITA program for their local communities.

SECTION 2.  Components of the Program. – In administering the grant program, the State Board of Community Colleges shall require participating community colleges to do at least the following:

(1)        Offer the following courses to students interested in becoming certified as tax preparers for the VITA program:

a.         A fall curriculum course for the purposes of teaching basic tax accounting and training students on the preparation of federal and North Carolina tax returns. The course shall lead to the completion of the IRS Link and Learn training to become certified as tax preparers for the VITA program.

b.         A spring work‑based learning course where students commit to 15 hours per week from January through April 15 to prepare taxes.

(2)        Designate a faculty champion to facilitate the program.

(3)        Provide VITA services to be offered to all students on campus as well as community members.

SECTION 3.  Applications for Grants. – A community college shall apply for a grant to the State Board with a plan to implement the VITA program on its campus with at least the following information:

(1)        A time line for implementing the curriculum and a recruitment of students to become certified as VITA tax preparers.

(2)        Options for paid work‑based opportunities for students as part of the spring curriculum. Students shall be provided hourly compensation for tax preparation assistance during tax season as part of the program.

(3)        Start‑up and ongoing costs for personnel, including site coordinators and quality reviewers, and budget for continuing costs for running the VITA program.

SECTION 4.(a)  Appropriation. – There is appropriated from the General Fund to the Community Colleges System Office the sum of (i) seven hundred fifty‑five thousand one hundred dollars ($755,100) in nonrecurring funds and five hundred seventy thousand one hundred dollars ($570,100) in recurring funds for the 2021‑2022 fiscal year and (ii) five hundred forty‑nine thousand dollars ($549,000) in nonrecurring funds for the 2022‑2023 fiscal year to implement the grant program in accordance with this act. The funds shall be used as follows with any unexpended funds returned to the System Office:

(1)        For the 2021‑2022 fiscal year, the sum of seven hundred fifty‑five thousand one hundred dollars ($755,100) in nonrecurring funds may be used for creation of the curriculum, for bonuses of up to one thousand five hundred dollars ($1,500) per community college receiving a grant to support a faculty champion on campus, to support hiring personnel for the VITA program, and to establish work‑based learning opportunities for students.

(2)        For the 2022‑2023 fiscal year, the sum of five hundred forty‑nine thousand dollars ($549,000) may be used for bonuses of up to five hundred dollars ($500.00) per community college receiving a grant to support a faculty champion on campus, to support hiring personnel for the VITA program, and to establish work‑based learning opportunities for students.

(3)        For the 2021‑2022 fiscal year and for subsequent fiscal years, five hundred seventy thousand one hundred dollars ($570,100) in recurring funds may be used to support hiring personnel for the VITA program and to establish work‑based learning opportunities for students. The System Office may use up to fifty thousand dollars ($50,000) of the recurring funds appropriated for the program each fiscal year for administrative costs associated with administering the grant program.

SECTION 4.(b)  There is appropriated from the General Fund to the Department of Revenue the sum of fifty thousand dollars ($50,000) in nonrecurring funds and one hundred thousand dollars ($100,000) in recurring funds for the 2021‑2022 fiscal year to provide training and technical assistance to community college campus personnel and students participating in the grant program in accordance with this act. The Department of Revenue may use the funds appropriated pursuant to this section to contract with a third‑party vendor to provide technical assistance and support for the program.

SECTION 5.  This act becomes effective July 1, 2021.