AN ACT to allow enlisted military service members Residing in north carolina to deduct the first six thousand dollars received as basic pay from the state income tax.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105‑153.5(b) is amended by adding a new subdivision to read:

(17)    The first six thousand dollars ($6,000) received under Title 37 of the United States Code as basic pay by an enlisted member residing in North Carolina who is (i) an active member of the Armed Forces of the United States, (ii) a member of the Army Reserve, Navy Reserve, Marine Corps Reserve, or Air Force Reserve, or (iii) a member of the Army National Guard or the Air National Guard.

SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2023.