A BILL TO BE ENTITLED
AN ACT to expand the affordability of higher education by increasing the income tax deduction for College Savings plans and increasing the minimum award of certain need‑based college scholarships.
The General Assembly of North Carolina enacts:
SECTION 1.  Section 27 of S.L. 2006‑221 is repealed.
SECTION 2.  Section 24.12(b) of S.L. 2006‑66 reads as rewritten:
"SECTION 24.12.(b)  This section is effective for taxable years beginning on or after January 1, 2006."
SECTION 3.  G.S. 105‑134.6(d)(4) reads as rewritten:
"(d)	Other Adjustments. – The following adjustments to taxable income shall be made in calculating North Carolina taxable income:
…
(4)	A taxpayer whose adjusted gross income (AGI), as calculated under the Code, is less than the amount listed in this subdivision may deduct from taxable income the amount, not to exceed two thousand five hundred dollars ($2,500) contributed to an account in the Parental Savings Trust Fund of the State Education Assistance Authority established pursuant to G.S. 116‑209.25. In the case of a married couple filing a joint return, the maximum dollar amount of the deduction is five thousand dollars ($5,000).
Filing Status	AGI
Married, filing jointly	$100,000
Head of Household	80,000
Single	60,000
Married, filing separately	50,000"
SECTION 4.  G.S. 115C‑499.3(c) reads as rewritten:
"(c)	The minimum award of a scholarship under this Article shall be five hundred dollars ($500.00)."
SECTION 5.  Section 3 of this act is effective for taxable years beginning on or after January 1, 2007.  Section 4 of this act becomes effective July 1, 2007, and applies to academic years beginning on or after that date.  The remainder of this act is effective when it becomes law.