North Carolina House Votes to Reject Some CARES Act Tax Changes

North Carolina is looking to avoid a revenue hit from federal pandemic tax relief provided to businesses.

The state House of Representatives passed a bill (H.B. 1080) Monday under which the state would opt out of taxpayer-favorable provisions of the CARES Act, a $2 trillion federal relief law enacted in March. H.B. 1080 passed on a vote of 98-21.

The North Carolina Senate still needs to consider the bill, which includes a broad range of tax provisions. The bill would decouple North Carolina tax law from a temporary increase of the federal tax code Section 163(j) limit on ...