Sen. Everitt files bill in North Carolina Senate to provide tax relief for small businesses

A new bill filed by Sen. Everitt seeks to provide income tax relief for small businesses by permitting deductions on net business income, according to the North Carolina State Senate.

The bill, filed as SB 455 on March 24 during the 2025 regular session, was formally listed with the short title: ‘Main Street Resilience Act.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, the bill aims to provide income tax relief to small businesses in North Carolina by allowing a deduction of up to $75,000 of net business income from taxable income. For married couples filing jointly, where both spouses have net business income, the deduction can be up to $150,000 together. The definition of a “small business” applies to independently owned and operated businesses with no more than 50 employees and annual revenues under $5 million. Notably, this deduction does not apply to passive income. The act is set to take effect for taxable years beginning on or after Jan. 1, 2026.

Of the three sponsors of this bill, Lisa Grafstein proposed the most bills (45) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Everitt graduated from Rutgers University in 1997 with a BA and again in 2001 from Columbus School of Law with a JD.

Everitt, a Democrat, was elected to the North Carolina State Senate in 2025 to represent the state’s 18th Senate district, replacing previous state senator Mary Wills Bode.