GENERAL ASSEMBLY OF NORTH CAROLINA
1997 SESSION
SESSION LAW 1997-525
SENATE BILL 1065
AN ACT TO EXPAND THE INCOME TAX EXCLUSION FOR SEVERANCE PAY TO INCLUDE SEVERANCE PAY DUE TO AN EMPLOYEE'S INVOLUNTARY TERMINATION THROUGH NO FAULT OF THE EMPLOYEE.
The General Assembly of North Carolina enacts:
Section 1. G. S. 105-134.6(b)(11) reads as rewritten:
"(11) The amount paid to the taxpayer as
severance wages as the result of the permanent closure of a manufacturing or
processing plant, not to exceed a maximum of thirty-five thousand dollars
($35,000) for the taxable year. 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 employee. 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 is effective for taxable years beginning on or after January 1, 1998.
In the General Assembly read three times and ratified this the 28th day of August, 1997.
s/ Dennis A. Wicker
President of the Senate
s/ Harold J. Brubaker
Speaker of the House of Representatives
s/ James B. Hunt, Jr.
Governor
Approved 11:32 a.m. this 17th day of September, 1997