Sen. Lowe files bill to reenact earned income tax credit in North Carolina Senate

A new bill filed by State Sen. Paul A. Lowe, Jr. seeks to reinstate the state earned income tax credit to provide financial relief to eligible taxpayers, according to the North Carolina State Senate.

The bill, filed as SB 211 on Feb. 27 during the 2025 regular session, was formally listed with the short title: ‘Reenact the Earned Income Tax Credit.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill reenacts the Earned Income Tax Credit (EITC) in North Carolina, allowing individuals who qualify for the federal EITC under section 32 of the Internal Revenue Code to receive a state tax credit equal to five percent of the federal credit amount. The bill applies to both full-year residents and nonresidents or part-year residents, with the latter required to adjust the credit amount based on residency rules. The credit is refundable, meaning if it exceeds the taxpayer’s state tax liability, the excess will be refunded. This reenactment becomes effective for taxable years starting on or after Jan. 1, 2025, with a sunset provision for taxable years beginning on or after Jan. 1, 2028.

Of the three sponsors of this bill, Lowe proposed the most bills (eight) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Lowe graduated from Bishop College in 1985 with a BA and again from Drew University School of Theology with a DMIN.

Lowe, a Democrat, was elected to the North Carolina State Senate in 2015 to represent the state’s 32nd Senate district, replacing previous state senator Earline Parmon.