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.