Budget & Taxes

in committee · North Carolina · Senate Mar 25, 2025

SB 461: Modify Taxation of 1031 Exchanges.

This bill changes North Carolina's tax treatment for real estate investors using 1031 exchanges (where property is swapped to defer capital gains taxes). It allows investors to deduct, from their state taxable income, the amount of "non-like-kind" property (like cash or different property) received in such exchanges, but only up to the original cost basis of the property sold. This adjustment aligns North Carolina's tax code with federal rules for this specific portion of exchange gains. The change applies to taxable years beginning January 1, 2025, and directly affects real estate investors conducting 1031 exchanges in North Carolina.

Topics ✗ Budget & TaxesOpposes Budget & TaxesAllows tax deduction for real estate investors, creating a tax break primarily for wealthy, reducing state tax revenue despite aligning with federal rules.85% confidence

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died · North Carolina · Senate Mar 25, 2025

SB 440: 2025 Governor's Budget.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates specific funding amounts for public instruction ($12.94B), health services ($8.83B), and UNC system ($4.24B), directing state entities to spend within these budgets for essential services.95% confidence ✓ EducationSupports EducationAllocates $12.94B for public instruction (K-12) funding, directly advancing education budget without restrictions or cuts.95% confidence

Sub-Topics State Budget Higher Education

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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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in committee · North Carolina · Senate Mar 26, 2025

SB 519: Transportation for the Future Act.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesMandates 20% of transportation funds for non-highway projects, directing budget allocation toward sustainable infrastructure85% confidence ✓ EnvironmentSupports EnvironmentPrioritizes sustainable transit projects (bus, rail, biking) and mandates 20% non-highway funding, reducing emissions and promoting eco-friendly infrastructure.85% confidence ✓ TransportationSupports TransportationMandates 20% funding for non-highway projects (bike/pedestrian/transit) and prioritizes sustainable transportation over traditional highway focus.95% confidence

Sub-Topics Public Transit Roads & Highways Transportation Funding

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in committee · North Carolina · Senate Mar 26, 2025

SB 487: Require Legislative Sponsors/Appropriations.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires named sponsors for appropriations to enhance accountability, promoting fiscal responsibility in budget management per bill's intent.85% confidence

Sub-Topics Appropriations Government Spending State Budget

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died · North Carolina · Senate Mar 26, 2025

SB 540: Increase Small County Funding.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill appropriates $20.96M from General Fund to increase school funding for small counties, directly advancing public education budget allocation per legislative intent.95% confidence ✓ EducationSupports EducationIncreases base funding for small county schools via revised allotments and $20.9M appropriation, directly advancing K-12 educational access and resources for under-3,300-student districts.95% confidence

Sub-Topics Appropriations State Budget School Funding

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in committee · North Carolina · Senate Mar 25, 2025

SB 455: Main Street Resilience Act.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for small businesses, reducing taxable income and offering fiscal relief per bill's tax deduction provisions.90% confidence

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

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in committee · North Carolina · Senate Mar 25, 2025

SB 446: Expand Workforce Housing.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill allocates $30M one-time and creates recurring tax revenue streams (1.5% property transfer fees, 33% real estate excise tax) for Housing Trust Fund, directly increasing state funding for affordable housing through budget mechanisms.92% confidence ✓ HousingSupports HousingBill allocates $30M + recurring revenue to Housing Trust Fund for affordable housing solutions including rentals and repairs, directly addressing housing shortage.95% confidence

Sub-Topics Sales Tax Affordable Housing Housing Finance

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in committee · North Carolina · Senate Mar 25, 2025

SB 456: Healthy Start NC.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates $146.3M from General Fund for new maternal/infant support program, increasing state budget spending on public health/social services without tax changes.95% confidence

Sub-Topics Business Taxes Income Tax State Budget

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died · North Carolina · Senate Mar 25, 2025

SB 473: Capital for Communities Act.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates dedicated fund from state investment earnings (3.5%) to fund affordable housing, healthcare, and workforce programs, increasing state funding allocation for public services.95% confidence ✓ EducationSupports EducationBill allocates grants specifically for 'nonprofit education facilities' through a dedicated fund, directly funding educational infrastructure and programs.95% confidence ✓ HealthcareSupports HealthcareBill specifically targets healthcare facilities addressing shortages and medical research for grants from the dedicated fund, directly advancing healthcare infrastructure and services.95% confidence ✓ HousingSupports HousingSB 473 creates a dedicated fund specifically targeting affordable housing projects through state grants, directly advancing housing affordability as a primary focus.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentDirectly funds workforce development and living-wage jobs, advancing employment standards per bill summary and subjects list.95% confidence

Sub-Topics Early Childhood Affordable Housing Community Development Property Development Workforce Development Tags Economic Development

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