A BILL TO BE ENTITLED
AN ACT to make income received from a north carolina state or local government retirement plan or a federal government retirement plan exempt from the state income tax.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑153.5(b) reads as rewritten:
"(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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(5)	The amount received during the taxable year from one or more of the following:

	
a.	A North Carolina State government retirement plan.
b.	A North Carolina local government retirement plan.
c.	A federal government retirement plan.
(5a)	The amount received during the taxable year from the United States government for payments of a Plan defined in 10 U.S.C. § 1447 to a beneficiary of a retired member of the Armed Forces of the United States that either (i) served at least 20 years or (ii) medically retired under 10 U.S.C. Chapter 61.

	
	
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SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2024.