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.
SB 440, the "Current Operations Appropriations Act of 2025," allocates base budget funding for North Carolina's state departments, agencies, and universities for the 2025-2027 fiscal biennium. It specifies exact funding amounts for all state operations, including $12.94 billion for public instruction, $8.83 billion for health and human services, and $4.24 billion for the University of North Carolina system. The bill directs all state entities to spend within these allocated amounts, with unused funds reverting to the appropriate fund at year-end. As a routine budget measure, it does not create new policies or affect specific groups beyond funding existing state services.
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.
SB 519, the "Transportation for the Future Act," reorganizes how North Carolina allocates transportation funds to prioritize sustainable projects like bus rapid transit, commuter rail, and bicycle/pedestrian improvements. It caps state funding for commuter or light rail projects at 10% of either the regional allocation or total project costs, and requires at least 20% of funds to go toward non-highway projects. The bill categorizes projects into "Statewide Strategic," "Regional Impact," and "Division Needs" groups, using specific scoring criteria (e.g., safety, economic growth, multimodal access) to rank and fund them. Local input and federal funding rules are also clarified to ensure transparency in project selection. This directly affects local governments, transit agencies, and communities seeking to build safer, more connected transportation systems.
SB 487 requires that every spending item in North Carolina's Current Operations Appropriations Act must be sponsored by a specific legislator, with the sponsor's name included directly in the appropriation text. This applies only to funding measures within the annual operating budget bill, not to other types of legislation. The bill mandates that appropriations become legally invalid if they lack a named sponsor, aiming to clarify accountability for each spending decision. It does not change how funding is allocated or impact public services directly, but affects how budget language is drafted and approved.
SB 540 increases funding for small county school systems in North Carolina by revising their supplemental allotment schedule. It provides higher base funding amounts based on student enrollment (e.g., counties with 0-1,300 students receive $1.82 million annually instead of prior rates), directly affecting small school districts with under 3,300 students. The bill appropriates $20,961,180 in recurring funds from the General Fund for the 2025-2026 fiscal year to implement these changes. The law takes effect July 1, 2025, ensuring increased per-student funding for eligible small county school systems.
SB 455, the Main Street Resilience Act, provides North Carolina small businesses with a new income tax deduction starting in 2026. It allows eligible small businesses to deduct up to $75,000 of their net business income from taxable income each year, with married couples filing jointly able to deduct up to $150,000 total. To qualify, a business must have fewer than 50 total employees (including related entities) and annual revenue under $5 million, excluding passive income. This deduction directly reduces tax liability for qualifying small businesses operating in North Carolina.
SB 446 increases funding for North Carolina's Housing Trust Fund to address the state's affordable housing shortage. It allocates $30 million in one-time funding for the 2025-2026 fiscal year and establishes recurring revenue streams: 1.5% of property transfer fees and 33% of real estate excise tax proceeds will now flow directly to the fund. This funding supports affordable housing solutions like rentals, home ownership, and repairs for North Carolinians struggling with housing costs - over 815,000 residents currently lack access to affordable housing. The bill aims to rebuild the fund's capacity after a 68% funding decline over the past decade.
SB 456, "Healthy Start NC," creates a program providing cash assistance to reduce maternal mortality and childhood poverty. It allocates $161.6 million annually from TANF funds and $146.3 million from the General Fund for the 2025-2027 biennium to give expecting mothers a one-time $1,500 prenatal allowance and $500 monthly for the first year after birth for infant needs like food, diapers, and childcare. Eligibility uses a means-based test tied to federal poverty levels, with funds administered through nonprofit partners to avoid affecting other benefits. To offset costs, the bill gradually reduces the corporate income tax rate from 2.25% (2025) to 0% (2029). The program becomes effective July 1, 2025, with tax changes starting January 1, 2025.
SB 473 creates the Capital for Communities Special Fund, a dedicated state fund that will receive 3.5% of certain investment earnings (when quarterly returns exceed 7%) from state funds managed by the Treasurer. The fund will provide grants for economic development projects in North Carolina, specifically targeting affordable housing, childcare centers, healthcare facilities addressing shortages, medical research, workforce development, living-wage jobs, and nonprofit education facilities. These grants must directly support community-based initiatives meeting the specified criteria. The bill establishes clear eligibility rules for fund usage but does not detail application processes or allocation priorities.
