Bringing The World Home To You

© 2024 WUNC North Carolina Public Radio
120 Friday Center Dr
Chapel Hill, NC 27517
919.445.9150 | 800.962.9862
91.5 Chapel Hill 88.9 Manteo 90.9 Rocky Mount 91.1 Welcome 91.9 Fayetteville 90.5 Buxton 94.1 Lumberton 99.9 Southern Pines 89.9 Chadbourn
Play Live Radio
Next Up:
0:00 0:00
Available On Air Stations

Gov. Cooper wants loan forgiveness exempt from state tax

North Carolina Governor Roy Cooper poses for a portrait at the Governor's mansion on Wed., Aug. 17, 2022. Cooper has been very vocal and public with his efforts to elect Democrats in this year’s mid-term elections. This follows the intensification in importance of state legislative races that occurred when the Supreme Court overturned Roe v Wade, and placed more emphasis on how state’s approach that issue, and its impact on the daily lives of residents.
Kate Medley
for WUNC
North Carolina Governor Roy Cooper poses for a portrait at the Governor's mansion on Wed., Aug. 17, 2022.

North Carolina Gov. Roy Cooper wants the General Assembly to pass legislation exempting individuals from state income tax on the student loan forgiveness announced by President Joe Biden last month.

The White House has said the value of that forgiveness — up to $20,000 for some — is exempt from federal income tax, citing language in the 2021 American Rescue Plan law. But North Carolina appears to be one of a half-dozen states where amounts would be subject to state tax without a change.

The Democratic governor pointed out that the General Assembly passed legislation in 2021 that exempted loans from the Paycheck Protection Program for businesses from state income tax and allowed recipients to deduct expenses paid with those loans.

“Republican legislators were quick to help businesses and should now fix this fundamental unfairness for many hardworking people who will get hit hard by this,” Cooper said in a Wednesday news release. North Carolina’s individual income tax rate of 4.99% falls to 4.75% in 2023.

The General Assembly’s primary work period for the year ended July 1. Lawmakers have held monthly three-day administrative floor sessions since then. The next such meeting is next week. Lawmakers have authority to consider substantive legislation during these sessions.

The Associated Press is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers. AP is neither privately owned nor government-funded; instead, it's a not-for-profit news cooperative owned by its American newspaper and broadcast members.
More Stories