A BILL TO BE ENTITLED
AN ACT TO EXEMPT UNEMPLOYMENT BENEFITS FROM INCOME TAX.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑134.6(b)(11) reads as rewritten:
"(b)	Deductions. – The following deductions from taxable income shall be made in calculating North Carolina taxable income, to the extent each item is included in taxable income:
. . .
(11)	Severance wages received by a taxpayer from an employer as the result of the taxpayer's permanent, involuntary termination from employment through no fault of the taxpayer and unemployment benefits received by the taxpayer under Chapter 96 of the General Statutes. The amount of severance wages deducted as the result of the same termination may not exceed thirty‑five thousand dollars ($35,000) for all taxable years in which the wages are received."
SECTION 2.  This act becomes effective for taxable years beginning on or after January 1, 2004. G.S. 105‑134.6(b)(11) is repealed effective for taxable years beginning on or after January 1, 2007.