2024 Disaster Relief Tax Law Changes
Disaster Recovery Act of 2024 - Session Law 2024-51
The 2024 General Assembly enacted legislation to support disaster relief and recovery for North Carolinians impacted by Hurricane Helene. This legislation included state tax relief. This appendix provides a summary of the tax law changes included in the Disaster Recovery Act of 2024 (“Act”). For further information on specific state tax relief and its application to persons required to file state tax returns, refer to the Act, Directive TA-24-1, and other notices issued by the Department.
Disaster Relief
Section 13.1.(a) of the Act requires the Secretary to waive the accrual of interest from September 25, 2024, through May 1, 2025, on an underpayment of tax imposed on a franchise, corporate income, or individual income tax return, including a partnership and estate and trust tax return, due on September 25, 2024, through May 1, 2025, for a taxpayer that resides or is located in any county declared a major disaster by the President of the United States under the Stafford Act (P.L. 93-288) as a result of Hurricane Helene. In addition, the Secretary will waive interest that accrues on an individual or corporation for failure to pay the required state estimated income tax pursuant to G.S. 105-163.15 and G.S. 105-163.41.
Section 13.1.(c) of the Act requires the Secretary to waive the accrual of interest on the following withholding taxes for a taxpayer located in any county declared a major disaster by the President of the United States under the Stafford Act (P.L. 93-288) as a result of Hurricane Helene:
(1) For an underpayment of tax due on a quarterly return for the third calendar quarter of 2024, the amount of interest accrued from October 31, 2024, through November 30, 2024, so long as the payment was made on or before November 30, 2024.
(2) For an underpayment of tax due on a monthly return for September 2024, the amount of interest accrued from October 15, 2024, through November 15, 2024, so long as the payment was made on or before November 15, 2024.
(3) For an underpayment of tax due on a monthly return for October 2024, the amount of interest accrued from November 15, 2024, through December 15, 2024, so long as the payment was made on or before December 15, 2024.
Section 13.1.(b) of the Act requires the Secretary to waive the accrual of interest on the following state, local, or transit sales and use taxes for a taxpayer whose principal place of business is located in a county declared a major disaster by the President of the United States under the Stafford Act (P.L. 93-288) as a result of Hurricane Helene:
(1) For an underpayment of tax due on a quarterly return for the third calendar quarter of 2024, the amount of interest accrued from October 31, 2024, through November 30, 2024, so long as the payment was made on or before November 30, 2024.
(2) For an underpayment of tax due on a monthly return for September 2024, the amount of interest accrued from October 20, 2024, through November 20, 2024, so long as the payment was made on or before November 20, 2024.
(3) For an underpayment of tax due on a monthly return for October 2024, the amount of interest accrued from November 20, 2024, through December 20, 2024, so long as the payment was made on or before December 20, 2024.
Section 13.1.(d) of the Act requires the Secretary to consider the election to pay North Carolina income tax at the entity level (the “Taxed PTE Election”) for tax year 2023 made by an S Corporation or an eligible partnership (collectively, a “PTE”) as timely provided the PTE’s tax return was due after September 25, 2024, and before May 1, 2025, and the Taxed PTE Election is made on a return filed on or before May 1, 2025.