HB 647 expands North Carolina’s agricultural tax program to include land owned by qualified conservation organizations. It allows conservation holders (nonprofits dedicated to preserving farmland/forestland) to have land taxed at its current agricultural or forest use value, rather than its full market value, when they acquire it. To qualify, land must be appraised at present-use value upon transfer to the conservation holder, and the holder must continue using it for conservation purposes while assuming tax liability for any deferred taxes. This bill directly affects conservation groups and landowners transferring property to them, aiming to support long-term land preservation through tax incentives. The law takes effect for taxes due in 2026.
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.
HB 728, the "Shared Investment in Our Heroes Act," increases North Carolina's property tax exemption for disabled veterans' homes from $45,000 to $75,000 starting in 2025, directly benefiting veterans with 100% service-connected disabilities and their surviving spouses. It allows veterans to prequalify for the exemption before purchasing a home and excludes their primary vehicle from property taxes. Local governments will be reimbursed up to 50% of revenue loss from these changes to offset financial impacts. The bill aims to provide immediate tax relief for disabled veterans while ensuring local fiscal stability through shared state-local funding.
HB 755 provides a sales tax exemption for qualifying North Carolina nonprofits, including hospitals, federally tax-exempt community organizations, volunteer fire departments, and university-affiliated groups. To qualify, nonprofits must obtain a state sales tax exemption number, with annual limits of $31.7 million for state tax and $13.3 million for local tax. The exemption covers most goods and services purchased for nonprofit activities but excludes electricity, telecommunications, alcohol, and certain other items. Real property contractors must provide documentation to retailers when buying materials for nonprofit projects to ensure proper tax treatment.
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.
HB 884 increases the gross receipts threshold for artisanal bakeries to remain exempt from North Carolina's sales tax on prepared foods. Specifically, it raises the annual revenue limit from $1.8 million to $2.4 million (combined with related persons), while maintaining the requirement that bakeries derive over 80% of revenue from bakery items like bread, pastries, and cakes. This change directly affects small bakeries that previously exceeded the $1.8 million limit but now qualify for tax exemption under the new threshold. The bill modifies existing tax law (G.S. 105-164.13B) to expand the exemption to more small bakeries, effective October 1, 2025.
House Bill 432 aims to provide various forms of property tax relief to North Carolina homeowners. It increases the property tax exclusion amounts for qualifying elderly or disabled homeowners and expands the exclusion for disabled veterans, allowing more of their home's value to be exempt from taxation. The bill also establishes a new "Homeowner Advantage Property Tax Relief Program" designed to cap the annual increase in a permanent residence's taxable value, based on inflation and a cumulative limit. To qualify for this program, homeowners must have occupied their residence for at least two years. Additionally, the bill creates an "Elderly Property Tax Homestead Circuit Breaker Program" and exemptions from the forced sale of a homestead.
SB 695, titled "Incent Development Finance District Funding," was introduced in 2025 but withdrawn from committee on April 28, 2025, without advancing further. The bill's title suggests it aimed to establish incentives for funding Development Finance Districts (DFDs), which are designated areas where local governments use special tax mechanisms to finance public improvements. However, no specific policy provisions or affected entities are described in the provided context, as the bill was withdrawn before committee action. Since it did not pass committee or receive a full legislative vote, no concrete policy changes were enacted.
HB 118 modifies North Carolina's property tax exemption for disabled veterans, replacing a flat $45,000 exclusion with a percentage-based system tied to the veteran's VA disability rating. It directly affects veterans with a 50% or higher service-connected disability rating (or surviving spouses under specific conditions), allowing them to exclude a portion of their home's appraised value from property taxes - equal to their disability percentage. For example, a veteran with a 70% disability rating would exclude 70% of their home's value from taxes. The bill takes effect for taxes due in 2025 and prohibits combining this relief with other property tax exemptions.
