HB 1042 North Carolina House · 2025-2026 Session

Affordable Housing Exemption Modifications.

HB 1042 updates North Carolina's property tax exemptions for nonprofit organizations that provide housing for low- or moderate-income individuals. The bill clarifies that land held by nonprofits for future affordable housing projects can remain tax-exempt for up to five years, with unpaid taxes deferred until the project is completed or the land is no longer used for this purpose. Additionally, the legislation establishes a new specific exemption for affordable rental housing, defining it as developments where more than half the units are rented to tenants earning at or below 80% of the area median income. These changes aim to provide clearer tax incentives for nonprofits developing and operating affordable rental properties.

Bill status passed 3 of 5 stages cleared

Introduction

Apr 2026

Committee Review

May 2026

House Passage

May 2026

Senate Passage

Governor

Introduced Apr 23, 2026 Last action May 22, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

Edition 2 → Edition 3 · 3 edits

MINOR

The bill was updated from Edition 2 to Edition 3 to reflect a new committee substitute, indicated by the addition of 'Committee Substitute #2' and a revised version number. The text of the bill itself shows no substantive policy changes, as the legislative language regarding housing exemptions and definitions remains identical between the two versions.

TECHNICAL

Added a header line indicating this is 'Committee Substitute #2' dated 5/19/26, replacing the previous 'Committee Substitute Favorable' dated 5/12/26.

Updated the internal version identifier from '*H1042-v-2*' to '*H1042-v-3*' to track the revision history.

Removed the line containing the previous version number and date, as it was superseded by the new committee substitute.

Floor votes · House May 19, 2026

How they voted

116–0

Passed · 1 other

Total votes 117

May 19, 2026

D Democratic46

45 Yea 1

97% Yea

R Republican71

71 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 22, 2026

Committee

Ref To Com On Rules and Operations of the Senate

upper

May 20, 2026

Lower · Passed

Passed 3rd Reading

lower

May 19, 2026

House · Passed

House Vote: pass (116-0-1)

house

May 19, 2026

Lower · Passed

Reptd Fav Com Sub 2

lower

May 12, 2026

Committee

Re-ref Com On Rules, Calendar, and Operations of the House

lower

May 12, 2026

Lower · Passed

Reptd Fav Com Substitute

lower

May 11, 2026

Committee

Re-ref to the Com on Finance, if favorable, Rules, Calendar, and Operations of the House

lower

May 7, 2026

Committee

Re-ref Com On Rules, Calendar, and Operations of the House

lower

Apr 27, 2026

Committee

Ref to the Com on Finance, if favorable, Rules, Calendar, and Operations of the House

lower

Apr 23, 2026

Introduced

Filed

lower

3 primary · 7 co-sponsors