SB 620, the STRONG Act of 2025, targets North Carolina's fentanyl crisis through several key measures. It significantly increases prison terms and fines for drug trafficking, especially for fentanyl, heroin, or carfentanil (e.g., 28+ grams carries a minimum 225-month sentence), and adds 60 months to sentences for offenses near schools or parks (Section 3.3). The bill appropriates $10 million for the State Bureau of Investigation's Drug Task Force (Section 4.1) and expands the Controlled Substances Reporting System. It also funds opioid prevention/treatment programs and creates a tax credit for businesses hiring staff trained in substance use disorder (Section 4.2). These provisions directly affect traffickers, law enforcement, healthcare providers, and eligible businesses.
SB 538, the Family Empowerment Act, expands child care assistance to families earning up to 300% of the federal poverty level, prioritizing single parents and workers in nontraditional hours. It creates tax credits for businesses offering paid parental leave (up to $2,500 per employee) and grants for small businesses to offset leave costs, while establishing state-funded financial counseling and home-visiting programs for low-income families. The bill requires child care costs to not exceed 7% of family income and mandates flexible work policies for employers, with "Family-Friendly Workplace" certification. Funded by $75 million annually from 2025-2027, it targets working families, employers, and child care providers across North Carolina.
HB 48 raises North Carolina's maximum weekly unemployment benefit from $350 to $400 for claimants filing on or after March 2, 2025, directly affecting unemployed workers. It also creates a 2025 tax credit for employers, allowing them to offset unemployment insurance taxes paid on 2024 fourth-quarter wages against their 2025 tax liability. The credit applies only to contributions remitted by January 31, 2025, and must be claimed via a specific report. The bill ratifies a governor's temporary disaster-related unemployment expansion but focuses on permanent changes to benefit levels and employer tax treatment.
HB 131 reinstates a 35% tax credit for businesses and homeowners who install solar energy systems in North Carolina. Businesses can claim the credit over five years (with a $2.5 million maximum per installation), while homeowners receive capped credits based on system type (e.g., $1,400 for water heating, $3,500 for space heating). The credit applies to equipment placed in service in the state and expires for new installations after 2017, though projects meeting 2015 construction milestones qualify for extension. This bill renews a previously expired tax incentive program for solar energy adoption.
HB 316 reenacts North Carolina's Child Tax Credit to help families cover child care costs, with reimbursement percentages based on income and child age (e.g., 7-13% for dependents aged 6-12). It allocates $200 million annually to expand the NC Pre-K program, adding 32,000 slots for 4-year-olds, and $35 million to increase subsidized child care funding. The bill also requires public schools to provide free lunches at no cost to students through state funding tied to school nutrition evaluations. Additionally, it mandates a report on creating a high school child care apprenticeship program. The bill directly affects families with children, public schools, and child care providers across North Carolina.
SB 659, the "Investing in North Carolina Act," raises salaries for public school teachers and state employees for the 2025-2026 fiscal year. It establishes a new monthly salary schedule for teachers based on experience (ranging from $4,600 for 0 years to $6,370 for 29+ years), adds specific supplements for certified teachers, nurses, counselors, and specialists, and provides cost-of-living increases for retirees. The bill also expands the Wage$ program statewide and creates a tax credit for qualifying employers equal to 5% of wages paid or $10,000, whichever is lower. Directly affecting teachers, state employees, community college staff, UNC employees, retirees, and participating employers, it focuses on concrete pay adjustments through funding appropriations.
SB 211 reenacts North Carolina's state Earned Income Tax Credit (EITC), providing a cash refund to low-to-moderate income workers. It allows eligible residents to claim a credit equal to 5% of the federal EITC amount they qualify for, which is refundable (meaning they receive a cash payment even if they owe no state tax). The credit applies to taxable years beginning on or after January 1, 2025, and directly benefits working individuals and families with low earnings. The bill reinstates a previously sunsetted provision, ensuring continued state-level support aligned with the federal EITC.
HB 245 modifies North Carolina's low-income housing tax credit program to prioritize affordable housing development in rural communities and counties with higher poverty rates. It requires the state housing committee to adopt allocation rules that favor projects within 10 miles of amenities (like grocery stores) in towns under 10,000 people, measure distances by straight-line radius (not driving routes), and use poverty levels as a tiebreaker when projects score equally. The bill directs the committee to publish proposed rules for public comment and hold hearings before finalizing annual allocation plans. This policy change redirects existing housing tax credits toward qualifying rural and high-poverty areas without creating new funding. The bill takes effect October 1, 2025, for future allocation plans.
HB 181 reinstates North Carolina's Earned Income Tax Credit (EITC) for working families with children, providing a state tax credit equal to 5% of the federal EITC amount. The credit is refundable, meaning eligible families receive cash payments even if they owe no state tax, directly benefiting low-to-moderate income households struggling with housing, childcare, and basic living costs. It applies to taxable years beginning January 1, 2025, and aligns with federal EITC eligibility criteria. The bill reenacts the credit after its prior expiration, creating a concrete policy change to supplement family income.
This bill reinstates North Carolina's Earned Income Tax Credit (EITC) program, which provides a state tax credit to low-income workers who qualify for the federal EITC. It sets the state credit at 5% of the federal credit amount (down from 4.5% in 2013), making it refundable so eligible taxpayers receive cash even if they owe no state tax. The credit applies to tax years beginning January 1, 2025, and continues a program that expired after 2013. The bill does not change eligibility rules or create new benefits - it simply reenacts the prior policy structure.
