GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2025

H                                                                                                                                                    1

HOUSE BILL 1074

Short Title:      Prescription Drug Expenses Tax Deduction.		(Public)
Sponsors:	Representatives Reeder, Chesser, Campbell, and Paré (Primary Sponsors). For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to:	Health, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House

April 29, 2026

A BILL TO BE ENTITLED

AN ACT to allow an income tax deduction for prescription drug expenses.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105‑153.5 reads as rewritten:

"§ 105‑153.5.  Modifications to adjusted gross income.

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(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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(17) An amount, not to exceed five thousand dollars ($5,000), of the total unreimbursed out‑of‑pocket expenditures for prescribed medications and pharmacy cost‑sharing, excluding any amounts covered by tax‑favored accounts such as a Flexible Spending Account or Health Savings Account. No deduction is allowed under this subdivision for any amount of prescribed medication or pharmacy cost‑sharing for which a deduction is claimed under sub‑subdivision (a)(2)c. of this section for the same taxable year.

…."

SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2026.