Enhancing Ag. Opportunities in Rural NC.

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.