On April 3, North Carolina Gov. Roy Cooper signed S.B. 174 into law to effect numerous tax law changes, including revisions to the state’s elective pass-through entity (PTE) tax, many of which are retroactive, and an update to the state's Internal Revenue Code conformity date.
Retroactive Changes Effective for Tax Years Beginning on or After January 1, 2022:
Updates for Tax Year 2023 and Beyond:
S.B. 174 updates North Carolina’s corporate and individual income tax conformity date with the IRC from April 1, 2021, to the IRC “as enacted as of January 1, 2023, including any provisions enacted as of that date that become effective either before or after that date.”