North Carolina legislation · 2025-2026 Session
North Carolina S627: Small Business Capital Improvement Account.
Status: In committee, March 26, 2025
What the bill says
An act to allow small businesses to eliminate state income taxes on a portion of revenue if used for capital expenditures.
From the introduced text:
A BILL TO BE ENTITLED AN ACT TO ALLOW SMALL BUSINESSES TO ELIMINATE STATE INCOME TAXES ON A PORTION OF REVENUE IF USED FOR CAPITAL EXPENDITURES. 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. ... (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: ... (7a) The amount deposited during the taxable year by a taxpayer that is a small business to a capital improvement account. The deduction allowed by this subdivision is limited to deposit amounts of five percent (5%) of the taxpayer's adjusted gross income up to one million dollars ($1,000,000), two percent (2%) of the taxpayer's adjusted gross income above one million dollars ($1,000,000) up to two million dollars ($2,000,000), and one percent (1%) of the taxpayer's adjusted gross income above two million dollars ($2,000,000) up to three million dollars ($3,000,000). For purposes of this subdivision, a "small business" is a business whose cumulative gross receipts from business activity for the taxable year do not exceed ten million dollars ($10,000,000), and a "capital improvement account" is an account at a federally insured banking institution into which are deposited amounts …
Sponsors
- Bradley, Woodson (D, 42) · primary sponsor
- Smith, Kandie D. (D, 5) · primary sponsor
- Everitt, Terence (D, 18) · primary sponsor
- Garrett, Michael (D, 27)
- Robinson, Gladys A. (D, 28)
- Waddell, Joyce (D, 40)
Latest actions
- : Ref To Com On Rules and Operations of the Senate
- : Passed 1st Reading
- : Filed
Subjects: COMMERCE, SMALL BUSINESS, PUBLIC, TAXES, CORPORATE INCOME, TAXATION, CORPORATIONS, FOR-PROFIT
Common questions
- What is S627?
- S627 is a bill in the North Carolina Legislature (2025-2026 Session): Small Business Capital Improvement Account.
- What does S627 do?
- In its own words: An act to allow small businesses to eliminate state income taxes on a portion of revenue if used for capital expenditures.
- What is the status of S627?
- In committee as of March 26, 2025. Latest action: Ref To Com On Rules and Operations of the Senate (March 26, 2025).
- Who sponsored S627?
- Bradley, Woodson (D, 42), with 5 co-sponsors.
- Where is the official record for S627?
- On the North Carolina Legislature website: https://www.ncleg.gov/BillLookUp/2025/S627
Source: official North Carolina record. Tracked by Delilah, AI for legislation across all 50 states and Congress.