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HB 1077

NC Working Families Economic Relief Act.

2025-2026 Session Introduced by Eric Ager and 38 co-sponsors

The bill creates a grant-backed program at NC Community Colleges to train students as VITA tax preparers and offer free on-campus tax help to expand EITC use statewide.

Passed 1st Reading
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WeVote Research Nonpartisan
Bill Summary · HB 1077

Summary: NC Working Families Economic Relief Act (H.B. 1077) - North Carolina, Session 2025 (Filed Apr 28, 2026)

Purpose and intent

  • Establish a grant program through North Carolina’s Community Colleges to expand income tax assistance opportunities for students and local residents via the Volunteer Income Tax Assistance (VITA) program.
  • Provide financial support to the United Way of North Carolina to expand its VITA program statewide.
  • The underlying goal is to boost utilization of the federal Earned Income Tax Credit (EITC) and other tax credits by North Carolinians, support work-based learning for students, and strengthen communities’ access to free tax preparation and financial literacy resources.

Key provisions

Part I: Grant Program at North Carolina Community Colleges to Expand Income Tax Assistance

  • Program Establishment: The State Board of Community Colleges must establish a grant program using appropriated funds to enable campus-based VITA-related activities.
  • Scope and Activities:
    • Campuses may offer courses to train students to become tax preparers through the IRS VITA program.
    • Courses include a fall curriculum (basic tax accounting and training to complete IRS “Link and Learn”) and a spring work-based learning course (approximately 15 hours per week from January to April 15).
    • Each campus designates a faculty champion.
    • VITA services must be offered on campus to both students and community members.
  • Grant Application and Implementation:
    • Colleges apply with a plan detailing curriculum timelines, student recruitment for VITA certification, paid work-based opportunities, and start-up/ongoing costs (including site coordinators and quality reviewers).
  • Funding and Allocation:
    • General Fund appropriation: $1,380,000 (nonrecurring) for FY 2026-2027 and $610,000 (recurring) for FY 2026-2027 onward.
    • 2026-2027 use: up to $790,000 nonrecurring for curriculum creation, $1,500 faculty champion bonuses per campus, staffing, and work-based learning start-up costs.
    • Recurring funds (from 2026-2027 forward): $610,000 annually for personnel and student opportunities; up to $50,000 yearly for administrative costs by the System Office.
  • Expiration and Bonuses:
    • Up to $590,000 of nonrecurring funds (not reverting at end of 2026-2027) may be used through end of 2027-2028 to provide bonuses (up to $500) for faculty champions, staff, and student opportunities.
  • DOR Training Support:
    • Department of Revenue receives $50,000 nonrecurring in FY 2026-2027 and $100,000 recurring thereafter to provide training/technical assistance to campus personnel and students; may contract with a third-party vendor.

Part II: Funds to the United Way of North Carolina to Expand VITA

  • Grants to United Way: $840,000 (nonrecurring) for FY 2026-2027 directed to the United Way of North Carolina to expand VITA.
  • Uses:
    • Increase VITA locations, provide dedicated staff for evaluation and recruitment, acquire software and office supplies, and improve marketing.
    • Multilingual materials and connections to online resources, plus financial education components (budgeting, financial planning, etc.).
  • Timing: Funds do not revert after FY 2026-2027 but stay available through end of FY 2027-2028.

Part III: Effective Date

  • Effective date: July 1, 2026.

Who would be affected

  • North Carolina community colleges (participants and administrators of the grant program).
  • Students at participating colleges (opportunity to become IRS-certified VITA tax preparers; potential paid work-based learning).
  • Community members who receive on-campus VITA services.
  • United Way of North Carolina (receives directed grant funding to expand VITA services).
  • Department of Revenue (receives training/technical assistance funding to support program implementation).

Procedural and timeline aspects

  • Implementation would occur in the 2026-2027 fiscal year with funds deployed per the appropriations schedule.
  • Nonrecurring funds are front-loaded in 2026-2027, with recurring funds continuing in subsequent years.
  • Some nonrecurring funds are designated to roll over through 2027-2028 for ongoing bonuses and program support.
  • The act becomes effective July 1, 2026.

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

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