Budget & Taxes (Tax Incentives)

in committee · North Carolina · Senate Feb 10, 2025

SB 62: Nonprofit Fundraising Sales Tax Exemption.

SB 62 exempts eligible nonprofits in North Carolina from sales tax on physical items, digital property, and services used for their core activities, including fundraising events. It specifically covers 501(c)(3) organizations (excluding certain classifications), volunteer fire departments, and qualifying single-member LLCs owned by 501(c)(3) groups. The exemption includes purchases for fundraising events but has a $31.7 million annual cap per nonprofit. Nonprofits must obtain a special exemption number to qualify, and the bill adds new rules for applying and tracking these exemptions.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts nonprofits from sales tax on core activities, providing tax relief for charitable organizations and aligning with tax exemption policies.95% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · North Carolina · House Feb 13, 2025

HB 115: Child Care Facility Tax Exemption.

HB 115 exempts properly licensed child care facilities from property tax if they are used exclusively for child care. It applies to facilities operating under North Carolina's child care licensing rules (Chapter 110) and excludes both the building and necessary adjacent land from taxation. Partial exemptions are allowed if only part of a facility serves child care, but facilities on probation or with suspended licenses lose the exemption. The tax exemption takes effect for property taxes due on or after July 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax exemption for child care facilities, directly reducing property tax burden per tax exemptions subject and summary.95% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · North Carolina · Senate Feb 24, 2025

SB 128: Heroes Homestead Act.

SB 128, the Heroes Homestead Act, increases the property tax exemption for disabled veterans in North Carolina from $45,000 to $76,500 of a home's appraised value. This change directly affects qualifying disabled veterans who own and occupy their primary residence, providing greater tax relief on their homes. The bill amends North Carolina's property tax law to set the new exclusion amount, effective for taxes due on or after July 1, 2026. It does not apply to other property tax relief programs.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases property tax exemption for disabled veterans, reducing their tax burden per North Carolina tax law amendment.95% confidence ✓ VeteransSupports VeteransIncreases property tax exemption for disabled veterans from $45k to $76.5k, expanding financial relief for qualifying veterans per bill's explicit language.95% confidence

Sub-Topics Property Tax Tax Incentives Veteran Housing

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in committee · North Carolina · Senate Feb 25, 2025

SB 143: Disabled Veteran Property Tax Exemption.

SB 143 expands North Carolina's property tax exemption for disabled veterans by increasing the excluded value from the previous amount to $45,000 of a home's appraised value. It applies to veterans who own and occupy their permanent residence as their primary home, excluding this amount from property taxes. The bill prohibits qualifying veterans from using this exemption alongside other property tax relief programs. This change takes effect for property taxes due on or after July 1, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands property tax exemption for disabled veterans, providing targeted tax relief under taxation policy, directly aligning with tax exemption indicators.95% confidence ✓ VeteransSupports VeteransExpands disabled veterans' property tax exemption from prior amount to $45,000, increasing financial relief for qualifying veterans.95% confidence

Sub-Topics Property Tax Tax Incentives Veteran Benefits Veteran Healthcare Veteran Housing

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in committee · North Carolina · House Mar 3, 2025

HB 245: Affordable Housing in Rural Areas.

HB 245 modifies North Carolina's low-income housing tax credit program to prioritize affordable housing development in rural communities and counties with higher poverty rates. It requires the state housing committee to adopt allocation rules that favor projects within 10 miles of amenities (like grocery stores) in towns under 10,000 people, measure distances by straight-line radius (not driving routes), and use poverty levels as a tiebreaker when projects score equally. The bill directs the committee to publish proposed rules for public comment and hold hearings before finalizing annual allocation plans. This policy change redirects existing housing tax credits toward qualifying rural and high-poverty areas without creating new funding. The bill takes effect October 1, 2025, for future allocation plans.

Topics ✓ Budget & TaxesSupports Budget & TaxesModifies tax credit program to allocate state housing funds toward rural affordable housing, directing fiscal resources to prioritize high-poverty areas and essential housing needs.85% confidence ✓ HousingSupports HousingBill modifies tax credit program to prioritize rural affordable housing development, uses poverty as tiebreaker, and requires amenities proximity rules - directly advancing affordable housing access in underserved areas.95% confidence

Sub-Topics Tax Credits Tax Incentives Affordable Housing Homeownership Housing Finance Tags Rural Communities

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in committee · North Carolina · House Mar 6, 2025

HB 299: Increase Disabled Veteran Property Tax Benefit.

HB 299 increases the property tax exemption for disabled veterans in North Carolina from $45,000 to $54,000 of a home's appraised value. It directly affects qualifying disabled veterans who own and occupy their primary residence, allowing them to exclude a larger portion of their home's value from property taxes. The bill amends Section 105-277.1C of state law to reflect this higher exclusion limit, while maintaining that recipients cannot claim other property tax relief. This change takes effect for property taxes due on or after July 1, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases property tax exemption for disabled veterans, providing direct tax relief to qualifying homeowners, aligning with tax relief indicators for lower-income groups.95% confidence ✓ VeteransSupports VeteransIncreases disabled veterans' property tax exemption from $45,000 to $54,000, directly expanding financial benefits for qualifying veterans.95% confidence

Sub-Topics Property Tax Tax Incentives Veteran Benefits Veteran Education Veteran Housing

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in committee · North Carolina · Senate Mar 20, 2025

SB 354: NC Breakthrough Act.

SB 354 reenacts North Carolina’s Research and Development (R&D) tax credit with updated eligibility rules, primarily affecting small businesses conducting qualified research in the state. To qualify, businesses must meet specific wage standards (e.g., paying at least 90% of county average wages in certain areas), provide health insurance covering 50% of premiums for full-time employees, maintain environmental and safety compliance, and have no overdue tax debts. The credit applies to expenses for research performed in North Carolina, including costs paid to state universities for research. This bill modifies existing rules to tighten eligibility while maintaining the credit for qualifying small businesses through 2040.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit for small business R&D, reducing tax burden and incentivizing research, aligning with tax relief indicators for business growth.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentRequires 90% county wage standards, 50% health insurance coverage, and safety compliance for R&D tax credit eligibility - directly advancing labor protections.95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives Tags Small Business

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in committee · North Carolina · Senate Mar 20, 2025

SB 351: Right to Start Act.

SB 351, the Right to Start Act, allows new businesses (corporations, S corporations, LLCs, partnerships, and other entities) less than five years old with under $5,000 in net income to defer their state income tax payment for one year. It also requires state agencies to prioritize contracting with businesses operating under five years and mandates the Department of Administration to collect and report annual data on these contracts, including demographic and geographic breakdowns. The bill directly affects small, newly formed businesses seeking tax relief and state procurement decisions. Key provisions include the tax deferral eligibility criteria and the data collection/reporting requirements for state contracts.

Topics ✓ Budget & TaxesSupports Budget & TaxesDefers state income tax for qualifying small businesses, providing immediate cash flow relief and supporting new business growth within budget/tax framework.92% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives Tags Small Business

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in committee · North Carolina · House Mar 24, 2025

HB 467: Reenact Low-Income Housing Tax Credits.

HB 467 reenacts North Carolina's low-income housing tax credit program, allowing developers to claim tax credits for constructing or rehabilitating affordable housing. It specifies credit percentages (30%, 20%, or 10%) based on the income level of households (50% or less of area median income for 30% credit, 40% for 10% in high-income areas) and the location's income designation (low, moderate, or high-income county/city). Developers can receive credits either as a direct tax refund or a loan from the Housing Finance Agency, with affordability requirements applying for the full credit compliance period. This directly affects developers building qualifying low-income housing projects across North Carolina.

Topics ✓ Budget & TaxesSupports Budget & TaxesReenacts tax credits for low-income housing, providing tax relief to developers to fund affordable housing projects, directly supporting housing affordability through tax incentives.95% confidence ✓ HousingSupports HousingReenacts tax credits for affordable housing construction, directly funding low-income housing development through developer incentives targeting 50% AMI households.95% confidence

Sub-Topics Tax Credits Tax Incentives Affordable Housing Historic Preservation Housing Finance

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in committee · North Carolina · Senate Mar 26, 2025

SB 521: Community Infra. and Resilience Tax Credit.

SB 521 creates a 35% nonrefundable income tax credit for investment entities (like partnerships or S-corps) that fund small, newly formed businesses focused on community infrastructure and resilience. Eligible businesses must be under five years old, employ 25 or fewer people in North Carolina, generate $2 million or less in annual revenue, and primarily work on projects like improving roads, utilities, disaster preparedness, or sustainable energy. The credit limits total annual state spending to $5 million and caps individual credits at $100,000 per year, with unused credits carryable for up to 10 years. This policy aims to incentivize private investment in community-focused small businesses through tax benefits, not direct government funding.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 35% nonrefundable tax credit for infrastructure investments, reducing tax liability for qualifying entities and incentivizing community development through fiscal policy.95% confidence ✓ EnergySupports EnergyBill explicitly lists 'sustainable energy' as eligible project type for tax credit, directly funding clean energy infrastructure through investment incentives.90% confidence ✓ EnvironmentSupports EnvironmentBill explicitly includes 'sustainable energy' as eligible project type, directly promoting clean energy infrastructure funding under tax credit program.90% confidence ✓ TransportationSupports TransportationBill explicitly funds road infrastructure improvements via tax credit for eligible businesses, directly supporting transportation infrastructure projects.95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives Natural Disasters Tags Small Business

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