Reed Smith Client Alerts

The North Carolina Legislature passed S.B. 99, an omnibus budget act, on June 12, 2018, overriding a previous veto by Governor Roy Cooper.  S.B. 99 modified the Current Operations Appropriations Act of 2017 and addressed an expansive array of tax items, and includes changes to North Carolina’s individual and corporate income tax statutes, as well as changes to sales and use, excise, property, and estate and trust income taxes.1 Additionally, on June 26, 2018, North Carolina enacted S.B. 335, amending certain provisions of S.B. 99.

Implementing federal tax reform

The omnibus bill includes a number of corporate income tax provisions in response to federal changes in the Tax Cuts and Jobs Act (“TCJA”).  S.B. 99 updates the North Carolina reference to the Internal Revenue Code (“IRC”), to define “Code” as the IRC as enacted as of February 9, 2018; thereby incorporating the income tax provisions of the TCJA.