Gov. Roy Cooper said on Nov. 16 that he intends to sign the long-delayed state budget into law.
The General Assembly finally agreed on a nearly $53 billion state budget on Monday after months of back-and-forth negotiations. The Senate passed its version of the state’s two-year spending plan in June; the House, in August. The fiscal biennium began on July 1.
“The final spending plan includes some big wins for North Carolina’s small businesses,” NFIB State Director Gregg Thompson said.
The final budget calls for a reduction in the personal income tax rate from 5.25% to 3.99% over six years, including cutting to 4.99% beginning Jan. 1. “This is important because most small businesses are organized as pass-through entities, meaning they pay taxes at the individual tax rate,” Thompson said.
The budget also phases out North Carolina’s corporate income tax beginning in 2025, reaching zero by the end of the decade. It also allocates $5 million to the North Carolina Trucking Association Foundation to address the truck driver shortage in the state.
