HB 729 North Carolina House · 2025-2026 Session

Farmland Protection Act.

HB 729, titled the "Farmland Protection Act," makes several changes related to solar energy development. It reduces the property tax exclusion for solar energy electric systems from 80% to 40% of their appraised value, which will increase the taxable value of these systems. The bill also prohibits the construction of new utility-scale solar projects that are not qualifying facilities under federal law, unless they are sited on specific types of land such as brownfields, non-agricultural land, or clear-cut timberland. Additionally, it updates the effective dates for requirements regarding financial assurance and decommissioning plans for utility-scale solar projects, affecting both existing and new facilities.

Bill status died 1 of 4 stages cleared

Introduction

Apr 2025

Committee Review

Floor Vote

Governor

Introduced Apr 2, 2025 Last action Apr 30, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

Edition 2 → Edition 3 · 6 edits

MODERATE

This bill was revised to implement a phased reduction of the property tax exclusion for solar energy systems in North Carolina, rather than immediately repealing it. The changes establish a four-year timeline to gradually phase out the tax benefit, reducing the exclusion percentage from 80% to 0% by 2029. This approach provides a more predictable transition for solar system owners compared to the previous version that would have eliminated the benefit entirely in 2025.

Scope change

The bill's scope changed from an immediate repeal of the solar energy tax exclusion to a phased phase-out over four years, affecting taxable years beginning on or after July 1, 2026, through July 1, 2029.

TIMELINE

Changed from immediate repeal effective July 1, 2025 to a phased reduction schedule starting July 1, 2026.

REQUIREMENT

Added Section 1 to reduce the tax exclusion from 80% to 60% for taxable years beginning on or after July 1, 2026.

Added Section 2 to reduce the tax exclusion from 60% to 40% for taxable years beginning on or after July 1, 2027.

Added Section 3 to reduce the tax exclusion from 40% to 20% for taxable years beginning on or after July 1, 2028.

Added Section 4 to completely repeal the tax exclusion for taxable years beginning on or after July 1, 2029.

Added Section 5 to clarify that the act is effective when it becomes law, except as otherwise provided in the phased schedule.

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 30, 2025

Committee

Re-ref Com On Energy and Public Utilities

lower

Apr 30, 2025

Lower · Passed

Reptd Fav Com Sub 2

lower

Apr 15, 2025

Committee

Re-ref Com On Agriculture and Environment

lower

Apr 15, 2025

Lower · Passed

Reptd Fav Com Substitute

lower

Apr 14, 2025

Committee

Re-ref to the Com on Finance, if favorable, Agriculture and Environment, if favorable, Energy and Public Utilities, if favorable, Rules, Calendar, and Operations of the House

lower

Apr 14, 2025

Committee

Serial Referral To Rules, Calendar, and Operations of the House Stricken

lower

Apr 14, 2025

Committee

Serial Referral To Finance Stricken

lower

Apr 14, 2025

Committee

Serial Referral To Energy and Public Utilities Stricken

lower

Apr 10, 2025

Committee

Serial Referral To Rules, Calendar, and Operations of the House Added

lower

Apr 10, 2025

Committee

Serial Referral To Finance Added

lower

Apr 10, 2025

Committee

Serial Referral To Energy and Public Utilities Added

lower

Apr 10, 2025

Committee

Serial Referral To Rules, Calendar, and Operations of the House Stricken

lower

Apr 10, 2025

Committee

Serial Referral To Finance Stricken

lower

Apr 3, 2025

Committee

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

lower

Apr 2, 2025

Introduced

Filed

lower

2 primary · 22 co-sponsors