SB 354 reenacts North Carolina’s Research and Development (R&D) tax credit with updated eligibility rules, primarily affecting small businesses conducting qualified research in the state. To qualify, businesses must meet specific wage standards (e.g., paying at least 90% of county average wages in certain areas), provide health insurance covering 50% of premiums for full-time employees, maintain environmental and safety compliance, and have no overdue tax debts. The credit applies to expenses for research performed in North Carolina, including costs paid to state universities for research. This bill modifies existing rules to tighten eligibility while maintaining the credit for qualifying small businesses through 2040.
SB 239 increases the hourly wage for Direct Support Professionals (DSPs) serving Medicaid beneficiaries under North Carolina's Innovations waiver program by $5 per hour for the 2025-2026 fiscal year and another $5 per hour for 2026-2027. The law requires providers receiving this funding to use at least 90% of the increased payments to raise DSP wages directly, with verification through payroll documentation. The Department of Health and Human Services (DHB) will adjust payments to managed care organizations (LME/MCOs), which must pass the increase to providers and report quarterly on DSP wage changes. This policy directly affects DSPs working with people with intellectual and developmental disabilities (I/DD) and their employers under the waiver program.
Senate Bill 110, titled "North Carolina Work and Save," establishes the North Carolina Small Business Retirement Savings Program. This program aims to help private-sector employees aged 18 and older in North Carolina save for retirement if their employer does not already offer a retirement plan. It enables participating employers to offer a voluntary payroll deduction Individual Retirement Account (IRA) arrangement for their employees. A new North Carolina Small Business Retirement Savings Board would be created to oversee the program and manage its funds through private-sector entities.
HB 391 appropriates $2.178 million for the 2025-2026 fiscal year and $4.542 million for 2026-2027 to hire 50 additional Adult Protective Services (APS) workers statewide. The funds, distributed based on need factors like case volume and senior population, directly support county social services departments overwhelmed by rising elder abuse reports. Counties must use the funds solely for APS worker salaries and benefits, not to replace existing funding. This addresses a critical staffing gap identified by counties, where federal funds are depleted early and reports of elder abuse have increased significantly.
SB 431 protects law enforcement officers (including criminal justice and justice officers) who report excessive force or misconduct by colleagues. It requires officers to report such incidents within 72 hours to a supervisor not involved, and prohibits retaliation like termination or discipline for making a good-faith report. The bill explicitly allows agencies to still discipline officers for misconduct that occurred *before* the report was made. It also allocates $50,000 each to two training commissions for implementing these changes, effective December 2025.
HB 258, the Utility Worker Protection Act, increases penalties for assaulting utility and communications workers by designating such assaults as Class A1 misdemeanors - the highest misdemeanor level - when the worker is visibly identifiable (e.g., wearing company-logoed uniforms) and performing duties. It directly affects workers providing electricity, gas, telecommunications, or internet services, including those employed by public, private, or cooperative entities. The bill adds specific language to North Carolina’s assault statute, requiring prosecutors to apply this enhanced penalty for assaults meeting these criteria, without needing other legal provisions. The law takes effect December 1, 2025, applying to offenses committed on or after that date.
House Bill 272, known as "The Sergeant Mickey Hutchens Act," allows certain law enforcement, probation/parole, and correctional officers in North Carolina to purchase additional retirement service credit. Officers who hold an advanced law enforcement or corrections certificate and have at least five years of membership service can buy up to four years of creditable service. This purchase applies to members of the Teachers' and State Employees' Retirement System or the Local Governmental Employees' Retirement System. To do so, they must pay a lump sum covering the full cost of the increased retirement system liability and an administrative fee, with the option for their employer to contribute to this cost.
SB 582, the Wellness Break Act, establishes a paid sabbatical leave program for North Carolina public employees (state, county, city, school, and community college workers) and provides tax incentives for private sector employers. Public employees with three or more years in the same role can take 4-6 weeks of paid leave (70% of salary) for health, wellness, skill-building, or personal enrichment, provided they return to their position for one year. Private businesses offering similar leave qualify for a tax credit of up to $5,000 per employee to offset costs. The bill requires public employers to report on program usage and outcomes, and the NCWorks Commission will develop model policies and resources to support private sector adoption.
HB 511 establishes new salary levels for full-time magistrates in North Carolina, directly affecting these court officers who handle minor cases like traffic violations and small claims. The bill appropriates $11.5 million annually from the General Fund for 2025-2027 to fund these increases, with specific salary steps outlined in the law. Magistrates will receive raises every two years for the first three experience levels and every four years for higher levels, starting at $47,228 for new hires and reaching $90,498 for the highest step. The changes take effect July 1, 2025, and apply to magistrates working at least 40 hours weekly.
HB 97 adds stomach cancer (gastric cancer) to the list of occupationally related cancers that qualify firefighters for "killed in the line of duty" benefits under North Carolina's Public Safety Employees' Death Benefits Act. This means firefighters who die from stomach cancer directly linked to their firefighting duties will automatically be eligible for death benefits, easing the process for families seeking compensation. The bill appropriates $500,000 annually from 2025-2027 to cover these benefits. It takes effect July 1, 2025, applying to qualifying deaths occurring on or after that date.