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HB 668

An Act authorizing the Commonwealth of Pennsylvania to join the Counseling Compact; and providing for the form of the compact.

2025-2026 Regular Session Introduced by Lisa Borowski and 35 co-sponsors

Expands free tax prep via a college‑based VITA grant program and a United Way grant to boost EITC uptake and provide paid work experience for students.

Laid on the table (Pursuant to Senate Rule 9)
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Bill Summary · HB 668

HB 668 — NC Working Families Economic Relief Act (2025)

Status: Passed 1st Reading; bill text enacted to establish programs (effective July 1, 2025)

Main purpose

To expand free income tax preparation services (Volunteer Income Tax Assistance, VITA) across North Carolina by (1) funding a grant program at community colleges to train students as IRS‑certified tax preparers and provide campus/community VITA services, and (2) directing a one‑time grant to United Way of North Carolina to scale its VITA operations. The bill aims to increase take‑up of the Earned Income Tax Credit (EITC) and other tax benefits for low‑ and moderate‑income taxpayers while creating work‑based learning and paid opportunities for community college students.

Key provisions

  • Establishes a State Board of Community Colleges grant program (within appropriated funds) for participating campuses to:

    • Offer a fall course teaching basic tax accounting and preparing federal/NC returns (including IRS Link & Learn training for VITA certification).
    • Offer a spring work‑based learning course (students commit ~15 hours/week from Jan–Apr 15) to prepare taxes.
    • Designate a faculty champion per campus and provide VITA services to students and community members.
    • Require grant applications to include timelines, paid work‑based opportunity plans (hourly compensation for student preparers), and start‑up/ongoing personnel and quality‑review budgets.

  • Appropriations to implement the college program (FY2025‑26):

    • $1,380,000 nonrecurring and $610,000 recurring to the Community Colleges System Office.
    • $790,000 (nonrecurring, FY2025‑26) for curriculum creation, faculty champion bonuses (up to $1,500 per awarded college), hiring program personnel, and establishing work‑based learning.
    • $610,000 recurring to support personnel and student work opportunities in subsequent years; up to $50,000/year of this recurring amount may be used for program administration.
    • Up to $590,000 of the nonrecurring funds are held available through FY2026‑27 for bonuses (up to $500 per awarded college), personnel, and program support.

  • Department of Revenue support:

    • $50,000 nonrecurring and $100,000 recurring (FY2025‑26) to provide training and technical assistance to participating campuses; contracting for third‑party support is allowed.

  • United Way grant:

    • $840,000 nonrecurring (FY2025‑26) to the Office of State Budget and Management as a directed grant to United Way of North Carolina to expand VITA locations, staff for evaluation/recruitment, software/supplies, multilingual outreach, online resource connections, and financial‑skills education. These funds remain available through FY2026‑27.

  • Effective date: July 1, 2025.

Who is affected / anticipated impact

  • Directly: North Carolina Community Colleges (students, faculty, administrators), Department of Revenue, United Way of NC, Community Colleges System Office.
  • Beneficiaries: Low‑ and moderate‑income taxpayers (including those making ≤$67,000, persons with disabilities, limited‑English speakers) who receive free tax preparation and increased access to EITC and other credits; community college students gain certification, paid work experience, and employment skills.
  • Fiscal: State appropriations specified above; implementation depends on appropriated sums and competitive grant awards to campuses.

Policy rationale

The bill responds to estimates that ~225,000 North Carolinians eligible for the federal EITC do not claim it (average credit cited ≈ $2,812), seeking to return credits to households, strengthen financial capability, and expand practical workforce training through community colleges.

Compiled from official sources — confirm details with the bill’s official record.

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