SB 439 imposes a moratorium on new Opportunity Scholarships starting in the 2025-2026 school year, requiring new applicants to have received a scholarship in the prior year. It reduces funding for the program by $83.46 million annually (recurring) and $28.46 million (nonrecurring) for 2025-2026, while redirecting $113.46 million (recurring) and $28.46 million (nonrecurring) to public schools for the same year. The bill phases out the scholarship program entirely by 2037-2038 as current recipients become ineligible, and limits future scholarship funding increases to match public school funding growth. This directly affects new private school scholarship applicants and redirects funds from the Opportunity Scholarship program to North Carolina public schools.
SB 478 allows banks in North Carolina to deduct income tax on interest, fees, and penalties from loans secured by agricultural land, as defined by state law. This tax deduction applies to loans specifically backed by farmland, directly benefiting banks that provide such financing. The policy change takes effect for tax years beginning on or after January 1, 2025. The bill does not directly affect farmers or landowners but alters tax treatment for financial institutions offering agricultural loans.
HB 711 phases out North Carolina's corporate income tax for C Corporations over time, reducing the rate from 2.25% in 2025 to 0% after 2029. The bill directly affects C Corporations operating in North Carolina, which would pay progressively lower taxes until the tax is eliminated entirely. Key provisions include specific tax rates for taxable years beginning in 2025 (2.25%), 2026 (2%), 2028 (1%), and 0% after 2029. The bill is effective for tax years starting January 1, 2026, and does not change tax treatment for S Corporations.
HB 735 amends North Carolina's transportation funding rules to clarify state support for rail projects. It sets a 10% cap on state funds for commuter and light rail projects - limiting spending to either 10% of a regional funding allocation or 10% of the project's estimated cost. The bill also creates a new eligibility category for public transit services spanning four or more counties and serving over three municipalities. Additionally, it specifies that the state will not cover costs exceeding these funding limits, requiring project agreements to include these restrictions. The changes apply directly to regional transit authorities and developers seeking state funding for rail infrastructure.
HB 915 reenacts a 25% tax credit for film production companies in North Carolina that spend at least $250,000 on qualifying expenses within the state. The credit applies to costs like equipment rentals, wages (excluding payments over $1 million to top earners), insurance, and employee benefits, but excludes political ads, news broadcasts, live sports events, and obscene content. The credit is capped at $20 million per feature film and requires producers to notify the North Carolina Film Office before claiming it. This reenactment makes the credit effective for qualifying expenses occurring on or after January 1, 2025, after a prior sunset clause expired in 2015.
HB 996 reduces North Carolina's state budget spending limit by lowering the cap on the General Fund operating budget from 7% to 6% of projected total state personal income each year. This directly affects the state government's annual budget planning, requiring it to spend less relative to the state's economic output. The bill maintains the existing process for exceeding the cap, which still requires a two-thirds vote in both legislative chambers. It takes effect July 1, 2025, for budgets adopted on or after that date.
