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 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:
…
(5)	The amount received during the taxable year from one or more of the following:

	
d.	A North Carolina State government retirement plan.
e.	A North Carolina local government retirement plan.
f.	A federal government retirement plan not included within subdivision (5a) of this subsection.
…."
SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2026.