A BILL TO BE ENTITLED
AN ACT to exempt from State income tax compensation received from the Armed Forces of the United States for services rendered outside of this state.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑134.6(b) reads as rewritten:
"(b)	Deductions. – The following deductions from taxable income shall be made in calculating North Carolina taxable income, to the extent each item is included in taxable income:
…
(19)	Compensation that is paid by the Armed Forces of the United States to an individual who is on active duty as a full‑time officer or enlisted member for that portion of the taxable year when the service member's permanent or temporary duty station is outside of this State."
SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2006.