Gregg Thompson, NFIB/North Carolina state director, gives an update on the state's Small Business Tax Relief Act.
Dear NFIB/North Carolina Members,
Here is an update on the Small Business Tax Relief Act:
Rep. Jason Saine, chairman of the House Finance Committee, has filed two bills to help small business owners. Each bill allows for the first $25,000 to $50,000 of income to be deducted on state income taxes if certain conditions are met. In HB 934, Tax Relief Act of 2015, if the business does not have a gross income of over $800,000. If the business owner files a single taxpayer return, the first $25,000 of business income may be deducted, if married filing jointly, the first $50,000 of business income may be deducted from the state tax return. A similar provision was passed in 2010 effective for the 2011 tax year, which saved business owners between $3,500 to $5,000 savings to their businesses. The 2011 provision was repealed in 2012 to help fund the Tax Reform Act, reducing corporate and personal tax rates in addition to repealing the estate tax. NFIB helped get the 2011 legislation passed and strongly supports Rep. Saine’s HB 934.
Regards,
Gregg Thompson
NFIB/North Carolina State Director