Written by THE ASSOCIATED PRESS

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.

 

Photo via Ethan Hyman/The News & Observer and Associated Press.

 

Related Stories
‹
NC Senate Leader Pans Exempting Student Loan Forgiveness Tax
Written by THE ASSOCIATED PRESS Efforts to exempt North Carolina residents from state income tax on the value of student loan forgiveness announced last month by President Joe Biden likely will be unsuccessful given that the state Senate’s most influential member opposes them. Democratic Gov. Roy Cooper asked legislators last week to change state law to […]
Corporate Tax Cuts, Prediction Market Leeway, and Underfunding Education: Why Orange County's Legislators Voted Against NC's Budget
All three of Orange County’s state representatives voted against North Carolina's updated budget, citing issues with its contents and construction.
Therapy Smarts and Sen. Natalie Murdock on How HB696 Impacts Children and Families — On Air Today (June 15, 2026)
Founder and CEO of Therapy Smarts Avani Shah and N.C. District 20 Sen. Natalie Murdock speak with 97.9 The Hill on Monday, June 15.
Rep. Allen Buansi Shares Details on Bill for Millionaire Tax to Fund Public Schools
The District 56 representative joined 97.9 The Hill to discuss the bill he's co-sponsoring to explore new ways for funding public schools.
'Worried For Our Future': Authors React to Removal Attempt of LGBTQ+ Books from CHCCS Elementary Libraries
North Carolina legislators are pushing to remove 63 LGBTQ-themed books from CHCCS elementary schools, saying they violate state law for being available in libraries.
North Carolina Supreme Court Throws Out Longtime Suit Over Education Funding
On Thursday, the North Carolina Supreme Court threw out longtime Leandro Case ruling and litigation over education funding in the state.
North Carolina Gov. Stein Cancels Medicaid Rate Cuts Amid Legal and Legislative Battles
North Carolina Democratic Gov. Josh Stein is canceling Medicaid reimbursement rate reductions he initiated over two months ago, preserving in the short term access to care for vulnerable patients.
North Carolina Adopts New Trump-Backed US House Districts Aimed at Gaining a Republican Seat
Written by GARY D. ROBERTSON RALEIGH, N.C. (AP) — North Carolina Republican legislative leaders completed their remapping of the state’s U.S. House districts on Wednesday, intent on picking up one more seat to help President Donald Trump’s efforts to retain GOP control of Congress in next year’s midterm elections. The new boundaries approved by the […]
North Carolina Court: GOP Can Narrow Governor’s Appointment Powers on Some Boards
Written by GARY D. ROBERTSON RALEIGH, N.C. (AP) — Decade-long political quarrels over legislative and executive powers in North Carolina advanced Wednesday as a state appeals court permitted the Republican-controlled General Assembly to chip away at the Democratic governor’s appointment authority for several key commissions. The judges also said lawmakers went too far remaking other boards. A […]
North Carolina GOP Announce Plans to Vote on New House Map Amid Nationwide Redistricting Battle
North Carolina Republican legislative leaders announced plans to vote on redrawing the state's U.S. House district map for 2026 elections.
›