A BILL TO BE ENTITLED
AN ACT to establish and dedicate funds for the North Carolina Education Endowment Fund to provide additional support and funding for K‑12 public schools.
The General Assembly of North Carolina enacts:
SECTION 1.  Chapter 115C of the General Statutes is amended by adding a new Article to read:
"Article 32E.
"North Carolina Education Endowment Fund.
"§ 115C‑472.16.  Establishment of the North Carolina Education Endowment Fund.
(a)	There is established the North Carolina Education Endowment Fund. The Fund shall be a special fund consisting of (i) moneys credited to it under G.S. 20‑81.12 from the sale of special registration plates to support teachers in the public schools; (ii) proceeds of any gifts, grants, or contributions to the State that are specifically designated for inclusion in the Fund; (iii) appropriations made to it by the General Assembly; and (iv) interest accrued to it thereon. Moneys in the fund shall be available for expenditure only upon an act of appropriation by the General Assembly.
(b)	The General Assembly shall only appropriate moneys in the North Carolina Education Endowment Fund for teacher compensation that is related directly to improving student academic outcomes in the public schools of the State."
SECTION 2.(a)  G.S. 20‑79.4(b) is amended by adding a new subdivision to read:
"(b)	Types. – The Division shall issue the following types of special registration plates:
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(251)	I Support Teachers. – Issuable to the registered owner of a motor vehicle in accordance with G.S. 20‑81.12. The plate shall have a gray chalkboard background with "I SUPPORT TEACHERS" written in white chalk across the top of the plate and an image of a red apple shall be in the lower left corner with the letters "ABC" appearing in white chalk over the apple."
SECTION 2.(b)  G.S. 20‑81.12(b12) reads as rewritten:
"(b12)	I Support Teachers Plates. – The Division must receive 300 or more applications for the I Support Teachers plate before the plate may be developed. The Division shall transfer quarterly the money in the Collegiate and Cultural Attraction Plate Account derived from the sale of I Support Teachers plates to the North Carolina Education Endowment Fund established pursuant to G.S. 115C‑472.16."
SECTION 2.(c)  Article 32C of Chapter 115C of the General Statutes is repealed.
SECTION 3.(a)  G.S. 105‑153.5(b) is amended by adding a new subdivision to read:
"(b)	Other Deductions. – In calculating North Carolina taxable income, a taxpayer may deduct from the taxpayer's adjusted gross income any of the following items that are included in the taxpayer's adjusted gross income:
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(10)	The amount of a contribution during the taxable year to the North Carolina Education Endowment Fund created pursuant to G.S. 115C‑472.16. No deduction shall be allowed under this subdivision for amounts deducted as an itemized charitable deduction under this section."
SECTION 3.(b)  G.S. 105‑130.9(2) reads as rewritten:
"§ 105‑130.9.  Contributions.
Contributions shall be allowed as a deduction to the extent and in the manner provided as follows:
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(2)	Contributions by any corporation to the State of North Carolina, any of its institutions, instrumentalities, or agencies, any county of this State, its institutions, instrumentalities, or agencies, any municipality of this State, its institutions, instrumentalities, or agencies, and contributions or gifts by any corporation to the North Carolina Education Endowment Fund created pursuant to G.S. 115C‑472.16 or to educational institutions located within North Carolina, no part of the net earnings of which inures to the benefit of any private stockholders or dividend. For the purpose of this subdivision, the words "educational institution" shall mean only an educational institution which normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where the educational activities are carried on. The words "educational institution" shall be deemed to include all of such institution's departments, schools and colleges, a group of "educational institutions" and an organization (corporation, trust, foundation, association or other entity) organized and operated exclusively to receive, hold, invest and administer property and to make expenditures to or for the sole benefit of an "educational institution" or group of "educational institutions."
…."
SECTION 3.(c)  Article 9 of Subchapter I of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑269.7.  Contribution of income tax refund or payment to the North Carolina Education Endowment Fund.
Any taxpayer entitled to a refund of income taxes under Article 4 of this Chapter, or any taxpayer who desires to make a contribution may elect to contribute all or part of the refund or may make a contribution to the North Carolina Education Endowment Fund established pursuant to G.S. 115C‑472.16 to be used in accordance with that statute. The Secretary shall provide appropriate language and space on the income tax form in which to make the election or contribution. The taxpayer's election or contribution becomes irrevocable upon filing the taxpayer's income tax return for the taxable year. The Secretary shall transmit the amounts designated pursuant to this section to the State Treasurer for credit to the North Carolina Education Endowment Fund."
SECTION 4.  Section 3 of this act is effective for taxable years beginning on or after January 1, 2014. The remainder of this act becomes effective July 1, 2014.