AN ACT to allow a business income tax deduction.

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)    An amount not to exceed seventy‑five thousand dollars ($75,000) of net business income the taxpayer receives during the taxable year. In the case of a married couple filing a joint return where both spouses receive or incur net business income, the maximum dollar amounts apply separately to each spouse's net business income, not to exceed a total of one hundred fifty thousand dollars ($150,000). For purposes of this subdivision, the term business income does not include income that is considered passive income under the Code.

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