In Bloomberg’s Daily Tax Report® the article, “North Carolina House Votes to Reject Some CARES Act Tax Changes” includes remarks from Smith Anderson tax attorney Bill Nelson on the North Carolina House’s passage of H.B. 1080, which has since been passed by the Senate and sent to the Governor. The article focuses on the passing of H.B. 1080 and explains that the bill decouples North Carolina from many of the taxpayer-favorable provisions of the federal CARES Act.
Bill Nelson told Bloomberg that he isn’t surprised about the Legislature’s decision not to conform to all of the CARES Act’s tax relief provisions. However, Bill expressed disappointment that the state chose not to conform to the provision of the CARES Act that temporarily increased the ceiling on business interest expense deductions.
“Full conformity would have generated refund opportunities for taxpayers that would accelerate the drain on state revenues,” said Bill. “While adopting all of the relief likely would have been expensive, conforming to the increased interest deduction provision alone would likely have been manageable.”
Bloomberg subscribers can read the full article here.
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