HB 1179 modifies North Carolina's property tax relief programs to help seniors and disabled homeowners by allowing them to combine two existing benefits and removing a strict income cutoff that previously denied aid to those just above the limit. The bill introduces a gradual phaseout for the elderly homestead exclusion, reducing benefits by 3.33% for every 1% of income earned above 55% of the state median, while also permitting eligible owners to stack this relief with the circuit breaker program. Additionally, the legislation clarifies rules for seniors living in shared or inherited properties to ensure they can receive full relief if no other non-spouse owner resides there. To offset the increased costs for local governments, the bill requires the state to reimburse counties for revenue losses and provides funding to support more frequent property tax reappraisals.
This bill mandates that all public schools in North Carolina, including charter and laboratory schools, provide free breakfast and lunch to every student starting in the 2026-2027 school year. To support this requirement, the state will allocate $116 million from the General Fund to the Department of Public Instruction, with additional flexibility to use existing state aid if necessary. The legislation outlines specific criteria for distributing these funds, such as school size, the number of eligible students, and the quality of food provided, while ensuring that state money supplements rather than replaces other funding sources.
This bill creates a tax credit for North Carolina businesses that pay wages to employees to cover their health insurance premiums. To qualify, a business must employ individuals who work at least 35 hours per week and are subject to state tax withholding. Each eligible employee can generate up to a $400 tax credit for the business, but the total credits available in any given year are capped at $5 million. Applications for this credit will be processed on a first-come, first-served basis, and the state will track and report the number of applications and approvals by county. The provisions of this act will take effect for tax years beginning on or after January 1, 2026.
HB 1053 directs the North Carolina General Assembly to allocate additional state funds to the Department of Public Instruction for classroom supplies and equipment. Starting in the 2026-2027 school year, the bill provides $28.6 million, with further increases of $15.1 million and $22.6 million planned for the 2027-2028 and 2028-2029 fiscal years respectively. These recurring funds are intended to increase the specific allotment given to schools for instructional materials and equipment. The legislation becomes effective on July 1, 2026.
This bill directs $34.88 million in state funds to three North Carolina entities for the 2026-2027 fiscal year to support emergency services, public safety, and affordable housing. The Town of Davidson receives $20.44 million to build a fire station, buy an emergency vehicle, and purchase police and breathing apparatus equipment. The Town of Cornelius is allocated $10 million for land acquisition for a future public safety facility, replacing a fire engine, improving pedestrian safety, and constructing a recreation center. Additionally, the Lake Norman Community Development Corporation gets $4 million to develop affordable housing in Cornelius, including specific funding for the Smithville community. These nonrecurring funds are scheduled to take effect on July 1, 2026.
This bill directs North Carolina's Department of Transportation to create a new method for funding bridge replacements that operates separately from the current Strategic Mobility Formula. To accomplish this, the state will allocate $100,000 in nonrecurring funds for the 2026-2027 fiscal year to support the development of this alternative plan, which must include a prioritization process and a specific revenue source. The department is required to submit its proposed formula and legislative recommendations to various committees by December 1, 2026, and the law takes effect on July 1, 2026.
HB 1167 establishes the 2026 Governor's Budget for North Carolina by providing specific funding amounts to state departments, institutions, and agencies for their current operations. The bill directly affects a wide range of public services, including education, health and human services, agriculture, justice, and general government functions. Key provisions include allocating funds for public schools, universities, healthcare programs, and law enforcement, with detailed dollar amounts specified for each fiscal year of the 2025-2027 biennium. Any unused funds from these appropriations will revert to the appropriate state funds at the end of the fiscal year.
This bill removes a specific 18.93-acre parcel of land from the official boundaries of the City of Washington in Beaufort County, North Carolina. The property is defined by a detailed survey with precise coordinates and distances, and the change will take effect on June 30, 2026. Once the bill becomes law, the land will no longer be subject to municipal taxes imposed for taxable years beginning on or after July 1, 2026, although any outstanding tax liens from before that date will remain valid.
HB 1077 creates a grant program for North Carolina community colleges to train students as tax preparers for the Volunteer Income Tax Assistance (VITA) program, allowing them to help low-income individuals, people with disabilities, and limited English speakers file their taxes for free. The bill provides $1.38 million in initial funding and $610,000 in recurring funds to support curriculum development, faculty incentives, and paid work-based learning opportunities where students earn hourly wages during tax season. Additionally, the legislation allocates $840,000 to the United Way of North Carolina to expand its VITA services by increasing the number of locations, hiring dedicated staff, and improving outreach and financial education resources. These measures aim to help an estimated 225,000 eligible North Carolina filers claim the Federal Earned Income Tax Credit, which has an average value of about $2,894 per person. The act takes effect on July 1, 2026, and includes provisions for training and technical assistance to ensure the program runs effectively.
This bill aims to improve access to dental care in North Carolina by increasing the Medicaid reimbursement rates paid to dentists. Starting in the 2026-2027 fiscal year, the state will allocate $80 million from the General Fund to raise these payment rates, which have not significantly changed since 2008. The legislation seeks to encourage more private dental providers to join the Medicaid program, thereby expanding the network of available dentists for patients. By making it more financially viable for dentists to accept Medicaid, the bill intends to help reduce the number of people relying on emergency departments for urgent dental needs.