Supporting balanced tax reforms that boost NC’s national and global competitiveness.
North Carolina has moved from one of the least competitive business tax climates in the country to one of the strongest, helping drive economic growth, investment attraction, and national recognition as a top state for business.
Maintaining that momentum requires a tax climate that encourages investment, supports growth, and provides long-term certainty for employers.
The NC Chamber advocates for tax policy that meets five key principles we identified after conversations with our members.
- Competitiveness: To support long-term economic growth, North Carolina’s business tax structure should remain competitive with peer states and attractive to mobile capital investment.
- Fairness: Tax policy should be applied consistently and structured so similarly situated taxpayers are treated similarly, while maintaining a reasonable relationship between tax burden and ability to pay.
- Efficiency: Tax policy should support stable, long-term revenue growth while minimizing distortions that impact business and household decision-making. Broad-based, consistently applied tax structures help improve economic neutrality and predictability.
- Simplicity: Tax systems should be transparent, understandable, and efficient to administer, with compliance costs minimized for both taxpayers and government.
- Certainty: Employers and investors need predictable tax liabilities and stable tax laws to make long-term business decisions with confidence.
These principles help guide the NC Chamber’s support for tax modernization efforts that strengthen North Carolina’s business climate, improve predictability, and encourage long-term investment and growth.
Prioritizing Elimination of the Franchise Tax
One remaining challenge is North Carolina’s franchise tax structure, which can discourage capital-intensive investment and place North Carolina at a competitive disadvantage compared to peer states. The NC Chamber has long advocated for its elimination.
North Carolina’s franchise tax is levied on a company’s net worth rather than profitability, meaning businesses owe the tax regardless of whether they generate profit. Because it applies to business assets and investment, it can discourage capital-intensive growth and expansion. Only 14 states have a franchise tax and we could improve our competitive position by eliminating it.
Eliminating the franchise tax would create direct bottom-line savings for job creators and present a more welcoming front to businesses in all industries. Businesses make long-term investment decisions based on predictability, competitiveness, and return on capital. Taxes that discourage investment can weaken North Carolina’s ability to compete for future growth.
The Agenda
- Learn how the NC Chamber championed issues for North Carolina’s businesses in the latest edition of How They Voted.
- View our Legislative Agenda to learn how the NC Chamber will continue to protect our state’s competitive tax climate this legislative session.
Join the Effort
Ensure your business has a seat at the table as North Carolina shapes the tax policies that impact long-term competitiveness, investment, and economic growth. Add your voice to our growing NC Chamber member family today.
Support this effort: Become a Member