A BILL TO BE ENTITLED
AN ACT TO EXEMPT FROM INCOME TAX certain COMPENSATION PAID TO MILITARY PERSONNEL.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑134.6(b) is amended by adding a new subdivision to read:
"(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:
…
(18)	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, enlistee, or draftee."
SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2005.