Annual matching of federal, state tax laws nears approval

RALEIGH, N.C. (AP) — The annual decision by North Carolina legislators about whether state income tax laws should conform to federal tax rules is almost on Gov. Pat McCrory’s desk.

The House gave tentative approval Tuesday to legislation laying out where the state will follow adjustments the federal government made to income or deductions. The Senate approved the bill last week.

The measure allows teachers to deduct up to $250 in classroom expenses on state taxes, as federal rules allow.

The state won’t comply with other provisions, including one exempting the value of cancelled debt from income when an owner sells a home for less than what was owed on the mortgage. House Democrats criticized leaving out that provision last year and again on Tuesday.

Final approval in the House is likely on Wednesday.

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