Tax Relief for Working Families Act.

HB 181 reinstates North Carolina's Earned Income Tax Credit (EITC) for working families with children, providing a state tax credit equal to 5% of the federal EITC amount. The credit is refundable, meaning eligible families receive cash payments even if they owe no state tax, directly benefiting low-to-moderate income households struggling with housing, childcare, and basic living costs. It applies to taxable years beginning January 1, 2025, and aligns with federal EITC eligibility criteria. The bill reenacts the credit after its prior expiration, creating a concrete policy change to supplement family income.