North CarolinaHB 742025-2026 SessionHouseWALLET

AN ACT TO MAKE VARIOUS TECHNICAL AND CLARIFYING CHANGES TO THE CURRENT OPERATIONS APPROPRIATIONS ACT OF 2023 AND TO OTHER ACTS.

Sponsored By: Dean Arp (Republican), Kyle Hall (Republican), Donny Lambeth (Republican), Larry C. Strickland (Republican)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

16 provisions identified: 10 benefits, 0 costs, 6 mixed.

New land donation tax credit

The law creates a state income tax credit for donating a permanent real‑property interest in North Carolina for public benefits like forest or farm preservation, wildlife habitat, military buffers, floodplain protection in recent disaster counties, historic landscapes, or public trails. You must apply by April 15 of the year after the donation and keep records for review. Your credit cannot exceed your tax after other credits, and you can carry unused amounts forward for five years. Annual limits apply: up to $250,000 for an individual and $500,000 for a married joint return; pass‑throughs are capped at $500,000 in total and must pass the credit to owners (owner caps: $250,000 for individuals; $500,000 for C‑corp or pass‑through owners). The state caps all credits at $5,000,000 each year and prorates if requests exceed that; the Secretary notifies you of any reduction by December 31 of the year after the donation. For donations made in 2025 and 2026, you cannot also take the state charitable deduction for the same donation amount used for this credit. Unused allowed credit can transfer at death to a beneficiary, but the carryforward period does not extend.

Stronger statewide missing person alerts

The State Highway Patrol now runs the Center for Missing Persons. The law sets statewide alerts: AMBER for abducted children 17 or younger; Silver Alert for missing seniors 65+ with dementia; Missing Endangered for people 64 or younger with serious cognitive issues; Ashanti Alert for adult abductions with abductor and vehicle details; and a weather‑related missing alert. Alerts can use the Emergency Alert System, Wireless Emergency Alerts, and highway message signs to spread information fast.

Loan relief after FEMA denial

Local governments that borrowed while waiting for FEMA reimbursement can seek forgiveness of remaining loan principal and interest. To qualify, FEMA Public Assistance must have been denied in whole or part, no appeals or arbitration can be active, and the FEMA project worksheet must be closed. The Office of Recovery and Resiliency decides how much to forgive.

Site-ready grants and JDIG rules pause

The site‑readiness program can now fund electric lines, site studies, clearing and grading, and water, gas, sewer, and road work. Nonprofits working with local governments, and groups of local governments, can apply as partners. A temporary change to certain JDIG rules is in effect from October 25, 2024 through July 31, 2025, giving short‑term compliance relief to covered projects.

UNC jobs and reporting changes

Starting January 1, 2026, the UNC Board of Governors can label many positions—and all temporary employees—as exempt from State personnel rules. This can change pay, benefits, and job protections for affected employees. The UNC budget report to lawmakers is now due each year by March 1 instead of February 1.

New rules and funds for job sites

The state moves megasite and selectsite funds to EDPNC and requires spending under approved agreements with local governments, with performance rules and money recapture if a site is not kept available. Megasite acquisition grants are limited to 85% of the lower of purchase price or tax value and only for sites with a binding purchase option and finished core due diligence. The selectsite program grows to up to 20 sites and gets $10,000,000 in one‑time funding in 2024‑25 for site prep, planning, and due diligence. EDPNC must hire a national firm to identify 15 selectsites with a required mix of smaller sites. Any unspent selectsite funds as of April 1, 2025 from the named transfer pay for a study of 3–5 sites in the county declared a Hurricane Helene major disaster on September 28, 2024.

Corporate land donation credit

C corporations get a credit equal to 25% of the fair market value for qualifying real‑property donations in North Carolina, up to $500,000 per corporation each calendar year (including indirect donations through pass‑throughs). The company must apply by April 15 of the year after the donation, and the credit cannot be taken in the same year the donation is made. Unused credit carries forward for five years. A corporation cannot transfer or sell this credit, and it cannot also take a state charitable deduction for the same donation used for the credit.

Safer infant surrender protections

A parent who safely surrenders a baby less than 30 days old under the state’s safe‑surrender law cannot be prosecuted for child abuse tied to that baby’s care. The law also allows this safe surrender to be treated as a mitigating factor at sentencing for certain offenses.

More time for farm disaster claims

Farmers now have 60 days to submit Form 578 (or a Department form) for disaster crop‑loss help. For nursery, fruit‑bearing trees or bushes, and other specialty crops, the Department may grant one more 60‑day extension if you request it in writing within 60 days. The Department gathers all claim information within 60 days unless an approved extension applies.

Temporary State Bar review panel

A seven‑member State Bar Review Committee is created to examine North Carolina State Bar practices. Members are appointed by legislative leaders, the Governor, and the Chief Justice, with the State Bar President or designee also serving. The committee ends on December 31, 2026.

Water research and fish hatchery funding

After the Collaboratory finishes its algal bloom pilot review, any leftover 2021–22 funds can support other surface‑water research in North Carolina. The Wildlife Resources Commission can spend up to $46.7 million on the Setzer Hatchery project and must use at least $19.7 million in non‑State funds before State funds.

New fire funds and AFFF tracking

Public safety agencies get targeted help. $3,200,000 goes to Stokesdale Fire District for a new building, $700,000 to Rockingham County for fire department grants, and $100,000 to the Alamance County Sheriff for equipment. The State Fire Marshal must also run an online system to track storage and use of AFFF foam by public fire departments, with help from the NC Collaboratory.

Water and sewer funds moved to local projects

The law shifts water and sewer money to where it is needed. $3,000,000 moves from Oxford to the South Granville Water and Sewer Authority. Another $7,000,000 goes to the state budget office to grant $3,000,000 to Franklin County, $1,000,000 to Catawba County, and $3,000,000 to Hertford County. Prior water and wastewater funds for Archdale, Asheboro, Randleman, Randolph County, and Trinity now run through the state budget office but stay the same amounts. Claremont can use its earlier Lyle Creek Sewer funds for any regional wastewater improvements.

More time and funds for schools and arts

An $8,000,000 grant for Union County Schools stays available until June 30, 2028. The UNC School of the Arts Foundation gets a one‑time $4,500,000 in FY 2025‑26 to buy property next to the Stevens Center and build a new loading dock.

Auto underinsured change starts July 2025

A change to underinsured motorist coverage applies only to auto policies issued or renewed on or after July 1, 2025. Policies before that date are not affected by this subsection. Check your renewal date to know which rules apply.

Directed grants extended and reallocated

One‑time directed grants from S.L. 2022‑74 do not revert on December 31, 2024; they stay available until spent or the end of FY 2025‑26. The State moves any unencumbered Hurricane Florence Disaster Recovery Fund money to the Savings Reserve on this law’s effective date. Several grants change recipients, including $125,000 to Banner American Legion Auxiliary Unit #109, $350,000 to the Opportunities Industrialization Center of Rocky Mount, and $500,000 to Open Door Ministries of High Point, Inc. A $245,000 grant is split: $65,000 to Kidsville News! Summer Reading and $180,000 to the WORTH Court in Cumberland County. The law also redirects $20,000,000 previously for Charlotte to many named projects, such as $5,000,000 for Appalachian State’s Edwin Duncan Hall, $4,100,000 for Rosewood Middle School, and multiple fire and EMS needs.

Sponsors & Cosponsors

Cosponsors

Jerry "Alan" Branson
Republican • House
William D. Brisson
Republican • House
Mike Clampitt
Republican • House
Jake Johnson
Republican • House
Jeffrey C. McNeely
Republican • House
Larry W. Potts
Republican • House
Mitchell S. Setzer
Republican • House
Jeff Zenger
Republican • House