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

23 provisions identified: 18 benefits, 2 costs, 3 mixed.

Land donation tax credit for individuals

For donations on or after January 1, 2025 and before January 1, 2027, you can claim a credit for 25% of a qualified NC real property donation. Individuals can claim up to $250,000 per year. Pass‑through entities can claim up to $500,000 per year and must pass credits to owners, who face owner‑level caps. Married couples must file a joint NC return to claim the combined individual limit when both must file NC returns. Standard application, allocation, and carryforward rules apply.

Land donation tax credit for corporations

For donations on or after January 1, 2025 and before January 1, 2027, C corporations can claim a credit equal to 25% of a qualified NC real property donation, capped at $500,000 per year. Total annual allocated credits across this credit and the individual credit are capped at $5 million, with $3.25 million reserved for forest or farmland conservation. Credits are not transferable and are taken in the tax year tied to the effective application date.

No double tax break on donations

For tax years starting on or after January 1, 2025 and before January 1, 2027, you cannot deduct as a charitable gift the same amount you use to claim the conservation tax credit.

UNC temps lose overtime protections

Beginning January 1, 2026, temporary UNC employees can be treated as exempt from the State’s minimum wage and overtime rules. The UNC Board of Governors may also set more positions as exempt.

More help to prep megasites

Megasite grants can pay for due diligence like site studies, water and wastewater engineering, and road access plans. A “government partnership” can be a NC 501(c)(3) or 501(c)(12) working with local governments, or a group of local governments. For land buys, grants can cover up to 85% of the lesser of the purchase price or the tax value, and only when there is a binding purchase option and basic due diligence is done. Money for this program goes to EDPNC, which must use agreements with performance rules and can recapture funds if terms are not met. The state provides $10 million one‑time in FY 2024–25 for due diligence, and any Selectsite dollars still unspent on April 1, 2025 hire a national firm to find 3–5 sites in the county hit by the September 28, 2024 disaster.

Safe newborn surrender protections expanded

A parent who safely abandons an infant under 30 days old under G.S. 14‑322.3 is not prosecuted for child abuse tied to that infant. Courts may treat that abandonment as a mitigating factor at sentencing.

More time for farm loss claims

Farmers have 60 days to file Form 578 and for the Department to gather claim data. Nursery, fruit‑bearing, and specialty crop growers can request one more 60‑day extension in writing within 60 days of this section taking effect, subject to approval.

AFFF reporting and water research

The State Fire Marshal and the NC Collaboratory run an online portal to track where fire departments store and use AFFF. The Collaboratory can keep and repurpose leftover pilot funds for other surface water quality research after it completes the required evaluation.

Broader use of Concord airport funds

The City of Concord can use $5 million in 2023–24 funds for any capital improvement at Concord‑Padgett Regional Airport.

Charlotte funds moved to local projects

Money once set for the City of Charlotte is redirected to named local projects. It shifts $17.5 million (2023–24) and $2.5 million (2024–25) to listed capital, renovation, and equipment needs, such as $5 million for Appalachian State University’s Edwin Duncan Hall and $4.1 million for Wayne County’s Rosewood Middle School.

Disaster loan relief and fund cleanup

Local governments with short‑term disaster loans can apply to forgive some or all principal and interest when FEMA payment was denied, no appeals are active, and the project worksheet is closed. When this law takes effect, the State Controller moves any unspent, unencumbered Hurricane Florence Disaster Recovery money into the Savings Reserve.

Fixes to nonprofit grants and splits

The state corrects and redirects specific nonprofit grants to the intended groups. Examples include moving $5 million annually to the Wake Forest Institute for Regenerative Medicine and splitting a $245,000 grant between Kidsville News! and the Human Trafficking Commission for WORTH Court services in Cumberland County.

Historic site land, farmers market funding

The state allows $1 million to buy and develop about 100 acres next to the Charlotte Hawkins Brown historic site. Clay County can use its remaining $2 million for capital costs and equipment to build a farmers market.

Missing Persons Center moved and strengthened

All Missing Persons Center duties move into the State Highway Patrol. The Center runs alerts, a toll‑free line, and a central database, and may accept grants. Anyone who knowingly releases Center data outside the rules commits a Class 2 misdemeanor.

Public safety grants for fire and sheriff

$4 million moves to the budget office for safety grants: $3.2 million to Stokesdale Fire District for a new building, $700,000 to Rockingham County for fire department grants, and $100,000 to Alamance County Sheriff’s Department for equipment.

State Bar grievance panel updated

The State Bar Grievance Review Committee now has seven members chosen by set authorities and expanded duties. The committee expires on December 31, 2026.

Updated deadlines in recent laws

Section 4C.13(b) is retroactive to October 25, 2024 and now expires July 31, 2025. The insurance rule in Section 8(a) of S.L. 2024‑29 takes effect July 1, 2025 and applies to policies issued or renewed on or after that date.

More water and sewer money for towns

The law moves $3 million to the South Granville Water and Sewer Authority for water or sewer work. It also sends $7 million to the budget office to grant $3 million to Franklin County, $1 million to Catawba County, and $3 million to Hertford County for water or wastewater projects. Prior local allocations for Archdale, Asheboro, Randleman, Randolph County, and Trinity are regranted for water and sewer uses. Claremont can use its Lyle Creek Sewer funds for any regional wastewater improvements.

More UNC financial reporting to lawmakers

The UNC Board of Governors now files its annual report by March 1. The report must include salary rules, budgets, enrollment, demographic and outcome data, and mandatory student fee totals and large auxiliary revenue sources.

UNCSA gets $4.5M for property

Beginning July 1, 2025, the UNCSA Foundation receives a one‑time $4.5 million to buy property next to the Stevens Center and build a new loading dock.

Union County Schools grant time extended

Union County Schools can use its $8 million athletic facility grant until June 30, 2028. The money does not revert in 2026.

More time to use 2022–23 grants

Directed grants from 2022–23 that were still unspent on December 31, 2024 do not revert on that date. Grantees keep the money for the original purpose until it is spent. Any money left reverts at the end of the 2025–26 fiscal year.

Wildlife project budget raised, match required

The Wildlife Resources Commission’s WRC23‑1 project authorization rises from $39.7 million to $46.7 million. The Commission must commit at least $19.7 million in non‑State funds and use available endowment funds before State funds.

Sponsors & Cosponsors

Cosponsors

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