News

N.C. budget contains tax cuts, record rainy day fund, tax break for veterans

By Lightning Reports, Published: April 4, 2022

State Rep. Jake Johnson reminded constituents that the 2021-22 budget that became law in November contains tax cuts, a record high rainy day fund and the end of state income tax on military pensions.

“With inflation setting in and the prices of everyday goods going through the roof, we knew it was more important than ever to let North Carolina families keep more of their hard-earned money,” said Johnson, who helped guide the spending bill as vice chairman of the House Appropriations Committee. “Cutting taxes isn’t just something to say during campaign season. It is something we are actively doing in North Carolina to return economic power back to the citizens of this state.”
Other provisions of the budget:
• Increase zero-tax bracket to $25,500
• Bring “Rainy Day” savings fund to $4.25 billion – the largest in state history
• Cut the personal income tax rate from 5.25% to 3.99%
• Increase child tax deduction by $500 per child
• Allow businesses to deduct expenses paid by Paycheck Protection Program (PPP) loans
• Eliminate state income tax on military pensions
• Reduce and simplify the franchise tax on businesses
• Phase out the corporate tax
• Expand and extend Historic Preservation Tax Credit
• Extend Mill Rehabilitation Tax Credit