A BILL TO BE ENTITLED
AN ACT to modify the refundability provision of the Earned income tax credit.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑151.31 reads as rewritten:
"§ 105‑151.31.  Earned income tax credit.
(a)	Credit. – An individual who claims for the taxable year an earned income tax credit under section 32 of the Code is allowed a credit against the tax imposed by this Part equal to five percent (5%) of the amount of credit the individual qualified for under section 32 of the Code. A nonresident or part‑year resident who claims the credit allowed by this section must reduce the amount of the credit by multiplying it by the fraction calculated under G.S. 105‑134.5(b) or (c), as appropriate.
(b)	Limitation. – The credit allowed under this section may not exceed the amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowable, except tax payments made by or on behalf of the taxpayer.
(c)	Sunset. – This section is repealed effective for taxable years beginning on or after January 1, 2013."
SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2011.