House Bill 303 would repeal Section 42.2 of Session Law 2021-180, which is the provision that phases out North Carolina’s corporate income tax. In practical terms, the bill would stop the scheduled reduction and elimination of the corporate income tax and leave the tax in place under current law rather than continuing the phaseout.
The bill is very short and does not create a new tax structure or add new administrative requirements; instead, it targets one existing law and removes the phaseout language. The measure is titled "Make Corporations Pay What They Owe," signaling that its purpose is to preserve corporate income tax collections as a state revenue source.
If enacted, HB303 would amend North Carolina tax law by repealing the statutory provision that gradually phases out the corporate income tax. That would affect corporations subject to North Carolina’s corporate income tax by preventing the tax from being reduced to zero under the current phaseout schedule. The bill would also affect state revenue policy by preserving an existing source of General Fund revenue rather than allowing it to disappear over time.
There is no committee transcript or recorded vote information in the provided materials, so there is no direct evidence of debate or bipartisan support/opposition. The bill title and sponsor framing suggest a pro-revenue, pro-tax-collection stance, while the underlying policy change would likely appeal to those who favor maintaining corporate tax obligations and oppose the corporate tax phaseout. Because the bill had only been referred to committee at the time provided, its overall legislative reception cannot be determined from the available record.
The central point of contention is whether North Carolina should continue phasing out the corporate income tax or preserve it as a continuing revenue source. Supporters are likely to argue that corporations should continue paying state income tax and that repealing the phaseout protects public revenue. Opponents would likely argue that keeping the phaseout is important for business competitiveness, tax relief, and the state’s long-term plan to eliminate the tax. No specific committee objections or amendments are available in the provided context.