A BILL TO BE ENTITLED
AN ACT to provide a small business income tax exemption.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑131.1 is amended by adding a new subsection to read:
"(a1)	Before computing the income attributable to the State, an S Corporation may subtract from income the applicable exemption amount provided in the table below based on the corporation's income.
Income		Exemption Amount
$100,000 or less	$20,000
Over $100,000 through $200,000	$12,000
Over $200,000	0"
SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2005.