North Carolina is poised to pass a compromise budget that would be the first state budget to be approved in the state since 2017. This current budget proposal, if approved, will cover the next two fiscal years ending June 30, 2023 and June 30, 2024. This budget incorporates months of negotiations in the Republican-led legislature. North Carolina will be the last state in the country to adopt a budget.
Highlights of the budget bill include:
- Complete phase out of the 2.5% corporate income tax by tax years beginning after 2029, beginning with a decrease to 2.25% in 2025;
- Gradual lowering of the personal income tax rate from 5.25% to 4.99% for 2022 and to 3.99% for tax years beginning after 2026;
- Elimination of the two most burdensome of the three tax bases used to calculate the franchise tax on business assets;
- Extension of the Historic Preservation Tax Credit through 2031; and
- Historic $8 billion infrastructure investment plan.
Governor Roy Cooper signed the bill as presented, on November 19, 2021.
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