SB 456, "Healthy Start NC," creates a program providing cash assistance to reduce maternal mortality and childhood poverty. It allocates $161.6 million annually from TANF funds and $146.3 million from the General Fund for the 2025-2027 biennium to give expecting mothers a one-time $1,500 prenatal allowance and $500 monthly for the first year after birth for infant needs like food, diapers, and childcare. Eligibility uses a means-based test tied to federal poverty levels, with funds administered through nonprofit partners to avoid affecting other benefits. To offset costs, the bill gradually reduces the corporate income tax rate from 2.25% (2025) to 0% (2029). The program becomes effective July 1, 2025, with tax changes starting January 1, 2025.
SB 627 allows North Carolina small businesses with annual gross receipts under $10 million to reduce their state income tax by deducting funds deposited into a special capital improvement account. Businesses can deduct up to 5% of their adjusted gross income (capped at $1 million), 2% (up to $2 million), or 1% (up to $3 million) for qualifying property improvements like upgrades that add value, extend property life by 10+ years, or adapt property for new business uses. Funds must be deposited into a federally insured bank account and used solely for these improvements; unused funds must be added back to taxable income. The bill takes effect for tax years beginning January 1, 2025, and directly affects small businesses making eligible capital investments.
SB 684 creates a 25% tax credit for North Carolina corporations that make charitable donations of at least $1,000 to permanent funds held by qualifying community foundations. The credit, capped at $50,000 per corporation annually and limited to a total $12.5 million statewide each year, directly affects corporations making qualifying donations and community foundations meeting specific criteria (like serving local communities and having community-led governance). The bill requires foundations to maintain permanent funds for community development and mandates annual reporting on the program’s impact. The tax credit expires for taxable years beginning after December 31, 2029.
HB 544 creates a 40% state tax credit for businesses that spend at least $10 million rehabilitating eligible historic corporate campuses in North Carolina. To qualify, properties must be certified historic sites (listed on the National Register and locally designated), formerly served as corporate headquarters, occupy at least 20 acres, have an 80% vacancy rate for two years, and meet preservation requirements. The credit applies to rehabilitation costs incurred on or after January 1, 2026, and is tied to federal credit eligibility. This policy directly affects businesses planning major renovations of qualifying historic corporate properties.
HB 554 makes technical adjustments to North Carolina's tax code to align with federal rules and expand tax parity for peer-to-peer car rentals. It modifies how S corporation losses are deducted, restricts certain net operating loss deductions (like capital gains carryforwards), and updates estate/trust tax calculations. The bill specifically adds peer-to-peer car rental services to the alternate highway use tax, requiring them to pay the same tax as traditional rental companies. These changes affect individual taxpayers, S corporations, estates, trusts, and peer-to-peer car rental businesses, with most provisions effective for tax years beginning in 2025.
HB 630 restores a sales tax refund program for North Carolina's public school districts. It allows local school administrative units to receive annual refunds for sales tax paid on direct purchases of tangible property and services (like supplies or equipment), excluding items such as electricity, telecom, or food. The refund amount is capped at $13.3 million per year for all districts combined. The bill takes effect July 1, 2025, and adjusts state funding to reflect the restored refund program.
HB 711 phases out North Carolina's corporate income tax for C Corporations over time, reducing the rate from 2.25% in 2025 to 0% after 2029. The bill directly affects C Corporations operating in North Carolina, which would pay progressively lower taxes until the tax is eliminated entirely. Key provisions include specific tax rates for taxable years beginning in 2025 (2.25%), 2026 (2%), 2028 (1%), and 0% after 2029. The bill is effective for tax years starting January 1, 2026, and does not change tax treatment for S Corporations.
SB 584 authorizes counties to use specific sales tax revenue to fund local public transportation systems - including buses, light rail, bike lanes, and transit facilities - while requiring these funds to supplement (not replace) existing transportation budgets. It defines "public transportation system" broadly to include infrastructure like bus lanes, shared-ride services, and integrated fare systems. The bill also creates a new metropolitan public transportation authority for counties with over 1 million residents that border another state and operate light rail systems, giving them regional planning powers under specific rules. This authority would manage funding and coordination for transportation projects within its jurisdiction.
HB 915 reenacts a 25% tax credit for film production companies in North Carolina that spend at least $250,000 on qualifying expenses within the state. The credit applies to costs like equipment rentals, wages (excluding payments over $1 million to top earners), insurance, and employee benefits, but excludes political ads, news broadcasts, live sports events, and obscene content. The credit is capped at $20 million per feature film and requires producers to notify the North Carolina Film Office before claiming it. This reenactment makes the credit effective for qualifying expenses occurring on or after January 1, 2025, after a prior sunset clause expired in 2015.
SB 233, titled "Make Corporations Pay What They Owe," would repeal a specific provision (Section 42.2) from a 2021 law (S.L. 2021-180) that was phasing out North Carolina's corporate income tax. This bill does not create new taxes but stops the planned reduction of corporate tax rates, meaning corporations would continue paying the current rate instead of a lower rate scheduled to take effect. It directly affects corporations subject to North Carolina's corporate income tax, as the repeal prevents the phaseout from proceeding. The bill is purely procedural, with no additional provisions or mechanisms beyond this repeal.
