GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 2
HOUSE BILL 74
Committee Substitute Favorable 3/3/25
Short Title: House Budget Technical Corrections. (Public)
Sponsors:
Referred to:
February 11, 2025
*H74-v-2*
A BILL TO BE ENTITLED 1
AN ACT TO MAKE VARIO US TECHNICAL AND CLA RIFYING CHANGES TO T HE 2
CURRENT OPERATIONS A PPROPRIATIONS ACT OF 2023 AND TO OTHER ACTS. 3
The General Assembly of North Carolina enacts: 4
5
PART I. GENERAL PROVISIONS 6
7
EXTEND THE TIME LINE FOR CERTAIN DIRECTED GRANTS TO NON -STATE 8
ENTITIES 9
SECTION 1.1.(a) This section applies to any directed grants appropriated as 10
nonrecurring funds in S.L. 2022-74 for the 2022-2023 fiscal year that (i) remain unexpended as 11
of the effective date of this section and (ii) are subject to reversion on December 31, 2024, as set 12
forth in Section 1 of S.L. 2024-40. Notwithstanding any provision of law to the contrary, the 13
grants described by this section shall not revert on December 31, 2024, but shall remain available 14
for expenditure for the purpose for which the funds were appropriated until the earlier of the date 15
the funds are expended or the date the funds revert pursuant to subsection (b) of this section. 16
SECTION 1.1.(b) Any funds described in subsection (a) of this section that remain 17
unexpended as of December 31, 2024, shall revert to the appropriate fund at the end of the 18
2025-2026 fiscal year. 19
SECTION 1.1.(c) This section is effective retroactively to December 31, 2024. 20
21
PART II. EDUCATION 22
23
REVISE DEADLINE FOR UNC REPORT ON STATE BUDGET ALLOCATIONS AND 24
POLICIES 25
SECTION 2.1. G.S. 116-11(9b) reads as rewritten: 26
"(9b) The Board of Governors shall report by February 1 March 1 of each year to 27
the Joint Legislative Education Oversight Committee, the Senate 28
Appropriations Committee on Education/Higher Education, the House of 29
Representatives Appropriations Subcommittee on Education, and the Fiscal 30
Research Division on the actions and adjustments necessary to its budgetary 31
policies, regulations, and standards resulting from the Current Operations 32
Appropriations Act for the administration and operation of The University of 33
North Carolina and the distribution of State and federal funds to constituent 34
institutions. The report shall include at least the following information for 35
each constituent institution: 36 General Assembly Of North Carolina Session 2025
Page 2 House Bill 74-Second Edition
a. Guidelines related to State salaries of University of North Carolina 1
employees, including range, median, and mean of faculty salaries at 2
the institution. 3
b. Budget allocations and reductions, including for operating expenses 4
and specific programs. 5
c. Distribution of additional State allocations for enrollment funding. 6
d. Use of State funds and budget flexibility. 7
e. Availability of federal funds. 8
f. Tuition and fees. 9
g. Composition of the student population at the institution, including 10
headcount enrollment and full-time student enrollment for both 11
undergraduate and graduate students, and aggregate data on residency 12
status, median household income, gender, race, and ethnicity. 13
h. Student retention and graduation rates. 14
i. Postsecondary educational attainment rate at the institution, including 15
comparison to statewide data. 16
j. A comparison to prior fiscal year expenditures and appropriations. 17
k. The total amount of mandatory student fee revenue collected by 18
institution and fee type. 19
l. Any source of student auxiliary revenue that represents greater than 20
ten percent (10%) of the overall student auxiliary revenue by 21
institution and revenue type. 22
m. Any source of sales revenue that represents greater than ten percent 23
(10%) of the overall sales revenue by institution and sales revenue 24
type." 25
26
UNC BOARD OF GOVERNORS TEMPORARY EMPLOYMENT AUTHORITY 27
SECTION 2.2.(a) G.S. 126-5(c1)(8) reads as rewritten: 28
"(8) Employees of The University of North Carolina who are exempt from the 29
minimum wage and overtime compensation provisions of the Fair Labor 30
Standards Act, including instructional and research staff, student-oriented 31
professionals, finance professionals, business office professionals, auditor 32
professionals, information technology professionals, physicians, dentists, 33
pilots, and the faculty of the North Carolina School of Science and 34
Mathematics. Mathematics, and all temporary employees. The Board of 35
Governors of The University of North Carolina shall have the authority to 36
establish positions under this subdivision to be exempt from this Chapter 37
without further review or approval by any other State agency." 38
SECTION 2.2.(b) This section becomes effective January 1, 2026. 39
40
PART III. HEALTH AND HUMAN SERVICES [RES ERVED] 41
42
PART IV. AGRICULTURE AND NATURAL AND ECONOMIC RESOURCES 43
44
REALLOCATE CITY OF OXFORD WATER INFRASTRUCTURE FUNDS 45
SECTION 4.1.(a) Notwithstanding any provision of S.L. 2023-134 or the 46
Committee Report referenced in Section 43.2 of that act to the contrary, three million dollars 47
($3,000,000) of the funds allocated to the City of Oxford for the Kerr Lake Regional Water 48
project by Section 12.2(e)(136) of S.L. 2023-134 shall instead be allocated to the South Granville 49
Water and Sewer Authority for the same purpose. 50 General Assembly Of North Carolina Session 2025
House Bill 74-Second Edition Page 3
SECTION 4.1.(b) Notwithstanding any provision of S.L. 2023-134 or the 1
Committee Report referenced in Section 43.2 of that act to the contrary, seven million dollars 2
($7,000,000) of the funds allocated to the City of Oxford for the Kerr Lake Regional Water 3
project by Section 12.2(e)(136) of S.L. 2023-134 shall be transferred to the Office of State Budget 4
and Management to provide grants to the following local governments and purposes: 5
(1) Three million dollars ($3,000,000) to Franklin County for an infrastructure 6
project. 7
(2) One million dollars ($1,000,000) to Catawba County for a wastewater 8
infrastructure project. 9
(3) Three million dollars ($3,000,000) to Hertford County for a water or 10
wastewater infrastructure project. 11
12
REVISE MEGASITES READINESS PROGRAM 13
SECTION 4.2. Section 11.11 of S.L. 2022-74, as amended by Section 11.11 of S.L. 14
2023-134, reads as rewritten: 15
"SECTION 11.11.(a) Purpose. – It is in the best economic and developmental interests of 16
the State to support the development of megasites to ensure the State's ongoing competitiveness 17
for major manufacturing opportunities, including, but not limited to, the aerospace, automotive, 18
clean energy, food processing, semiconductor, and life science industries. The purpose of this 19
section is to establish a competitive grant program serving to do the following: 20
(1) Identify and evaluate up to seven megasites for preferred development and 21
marketing. 22
(2) Assist local governments or a partnership of local governments in the 23
acquisition of a newly identified or existing megasite. 24
(3) Support local governments or a partnership of local governments to analyze, 25
plan, install, or upgrade public infrastructure, including publicly owned water, 26
gas, and sewer systems, transportation infrastructure, and the electrical utility 27
lines necessary to meet the needs of prospective employers for megasites. 28
(4) Support local governments or a partnership of local governments to fund 29
on-site preparation, including clearing, grading, or other related expenses for 30
megasites. 31
(4a) Support local governments or a partnership of local governments in 32
conducting due diligence, including, but not limited to, the following: site 33
characteristics, preliminary engineering reports for water and wastewater 34
provision to the site, assessments related to road and highway infrastructure 35
to serve the site, and other assessments as needed. 36
(5) Facilitate coordination between the economic development entities, the North 37
Carolina Department of Environmental Quality, and the North Carolina 38
Department of Transportation to expedite needs related to timely site 39
development. 40
… 41
"SECTION 11.11.(d) Allocation. – EDPNC shall allocate monies in the Fund on the 42
following basis: 43
… 44
(2) All other funds appropriated to the Fund for local government grants for the 45
acquisition of megasites determined pursuant to subdivision (1) of this 46
subsection. purposes described in subsection (a) of this section. A grant for 47
the acquisition of a megasite is limited to eighty-five percent (85%) of the 48
lesser of the property's purchase price or tax value. The percentage actually 49
provided in the grant shall be determined by EDPNC based on total 50
development needs for the megasite, prior investment in the megasite by one 51 General Assembly Of North Carolina Session 2025
Page 4 House Bill 74-Second Edition
or more local governments, the ability of one or more local governments to 1
invest in the megasite, and the ability and level of participation promised by 2
the local government in exchange for a grant from the Fund. Monies may only 3
be granted for, and used to acquire, a megasite for which (i) one or more local 4
governments have a binding option or offer to purchase and (ii) all basic due 5
diligence must be complete, including, but not limited to, boundary surveys, 6
title searches, State Historic Preservation Office reviews, and wetlands 7
delineation. 8
…." 9
10
PART V. JUSTICE AND PUBLIC SAFETY 11
12
TRANSFER NORTH CAROLINA CENTER FOR MISSING PERSONS TO THE STATE 13
HIGHWAY PATROL 14
SECTION 5.1.(a) All functions, powers, duties, and obligations vested in the North 15
Carolina Center for Missing Persons in the Department of Public Safety are transferred to, vested 16
in, and consolidated within the State Highway Patrol by a Type I transfer, as defined in 17
G.S. 143A-6. 18
SECTION 5.1.(b) Article 17 of Chapter 143B of the General Statutes, as enacted by 19
S.L. 2024-57, is amended by adding a new Part 4 to be entitled "North Carolina Center for 20
Missing Persons." 21
SECTION 5.1.(c) Subpart B of Part 5 of Article 13 of Chapter 143B of the General 22
Statutes is recodified as Part 4 of Article 17 of Chapter 143B of the General Statutes, as enacted 23
by S.L. 2024-57, as follows: 24
Former Citation Recodified Citation 25
143B-1010 143B-1760 26
143B-1011 143B-1761 27
143B-1012 143B-1762 28
143B-1013 143B-1763 29
143B-1014 143B-1764 30
143B-1015 143B-1765 31
143B-1016 143B-1766 32
143B-1017 143B-1767 33
143B-1018 143B-1768 34
143B-1019 143B-1769 35
143B-1020 143B-1770 36
143B-1021 143B-1771 37
143B-1022 143B-1772 38
143B-1023 143B-1773 39
SECTION 5.1.(d) Part 4 of Article 17 of Chapter 143B of the General Statutes, as 40
recodified by subsection (c) of this section, reads as rewritten: 41
"Part 4. North Carolina Center for Missing Persons. 42
"§ 143B-1760. North Carolina Center for Missing Persons established. 43
There is established within the Department of Public Safety State Highway Patrol the North 44
Carolina Center for Missing Persons, which shall be organized and staffed in accordance with 45
applicable laws. The purpose of the Center is to serve as a central repository for information 46
regarding missing persons and missing children, with special emphasis on missing children. The 47
Center may utilize the Federal Bureau of Investigation/National Crime Information Center's 48
missing person computerized file (hereinafter referred to as FBI/NCIC) through the use of the 49
Police Information Network in the North Carolina Department of Justice. 50
… 51 General Assembly Of North Carolina Session 2025
House Bill 74-Second Edition Page 5
"§ 143B-1762. Control of the Center. 1
The Center is under the direction of the Secretary of the Department of Public Safety 2
Commander of the State Highway Patrol and may be organized and structured in a manner as the 3
Secretary deems appropriate to ensure that the objectives of the Center are achieved. The 4
Secretary Commander may employ those Center personnel as the General Assembly may 5
authorize and provide funding for. 6
"§ 143B-1763. Secretary Commander to adopt rules. 7
The Secretary Commander of the State Highway Patrol shall adopt rules prescribing all of 8
the following: 9
(1) Procedures for accepting and disseminating information maintained at the 10
Center. 11
(2) The confidentiality of the data and information, including the missing person 12
report, maintained by the Center. 13
(3) The proper disposition of all obsolete data, including the missing person 14
report; provided, data for an individual who has reached the age of 18 and 15
remains missing must be preserved. 16
(4) Procedures allowing a communication link with the Police Information 17
Network and the FBI/NCIC's missing person file to ensure compliance with 18
FBI/NCIC policies. 19
(5) Forms, including but not limited to a missing person report, considered 20
necessary for the efficient and proper operation of the Center. 21
… 22
"§ 143B-1765. Dissemination of missing persons data by law-enforcement agencies. 23
… 24
If the report involves a missing child and the report meets the criteria established in 25
G.S. 143B-1021(b), G.S. 143B-1771(b), as soon as practicable after receipt of the report, the law 26
enforcement agency shall notify the Center and the National Center for Missing and Exploited 27
Children of the relevant data about the missing child. 28
… 29
"§ 143B-1766. Responsibilities of Center. 30
The Center shall do all of the following: 31
… 32
(9) Maintain a directory of existing public and private agencies, groups, and 33
individuals that provide effective assistance to families in the areas of 34
prevention of child abduction, location of missing children and missing 35
persons, and follow-up services to the child or person and family, as 36
determined by the Secretary of Public Safety.Commander of the State 37
Highway Patrol. 38
… 39
(13) Perform such other activities that the Secretary of Public Safety Commander 40
of the State Highway Patrol considers necessary to carry out the intent of its 41
mandate. 42
… 43
"§ 143B-1768. Release of information by Center. 44
The following may make inquiries of, and receive data or information from, the Center: 45
… 46
(4) Any person engaged in bona fide research when approved by the Secretary; 47
Commander of the State Highway Patrol; provided, no names or addresses 48
may be supplied to this person. 49 General Assembly Of North Carolina Session 2025
Page 6 House Bill 74-Second Edition
(5) Any other person authorized by the Secretary of the Department of Public 1
Safety Commander of the State Highway Patrol pursuant to 2
G.S. 143B-1013.G.S. 143B-1763. 3
"§ 143B-1769. Provision of toll-free service; instructions to callers; communication with 4
law-enforcement agencies. 5
The Center shall provide a toll-free telephone line for anyone to report the disappearance of 6
any individual or the sighting of any missing child or missing person. The Center personnel shall 7
instruct the caller, in the case of a report concerning the disappearance of an individual, of the 8
requirements contained in G.S. 143B-1014 G.S. 143B-1764 of first having to submit a missing 9
person report on the individual to the law-enforcement agency having jurisdiction of the area in 10
which the individual became or is believed to have become missing. Any law-enforcement 11
agency may retrieve information imparted to the Center by means of this phone line. The Center 12
shall directly communicate any report of a sighting of a missing person or a missing child to the 13
law-enforcement agency having jurisdiction in the area of disappearance or sighting. 14
"§ 143B-1770. Improper release of information; penalty. 15
Any person working under the supervision of the Director of Victims and Justice Services 16
who knowingly and willfully releases, or authorizes the release of, any data, information, or 17
records maintained or possessed by the Center to any agency, entity, or person other than as 18
specifically permitted by Subpart B this Part or in violation of any rule adopted by the Secretary 19
Commander of the State Highway Patrol is guilty of a Class 2 misdemeanor. 20
"§ 143B-1771. North Carolina AMBER Alert System established. 21
(a) There is established within the North Carolina Center for Missing Persons the 22
AMBER Alert System. The purpose of AMBER Alert is to provide a statewide system for the 23
rapid dissemination of information regarding abducted children. 24
(b) The AMBER Alert System shall make every effort to disseminate information on 25
missing children as quickly as possible when all of the following criteria are met: 26
(1) The child is 17 years of age or younger;younger. 27
(2) The If abduction is not known or suspected to be by a parent of the child, 28
unless the child's life is must be suspected to be in imminent danger of serious 29
injury or death;death. 30
(3) The child is believed:believed (i) to have been abducted and (ii) to be in danger 31
of injury or death. 32
a. To have been abducted, or 33
b. To be in danger of injury or death; 34
(4) The child is not a runaway or voluntarily missing; andmissing. 35
(5) The abduction has been reported to and investigated by a law enforcement 36
agency. 37
If the abduction of the child is known or suspected to be by a parent of the child, the Center, 38
in its discretion, may disseminate information through the AMBER Alert System if the child is 39
believed to be in danger of injury or death. 40
… 41
(f) The Department of Public Safety, State Highway Patrol, on behalf of the Center, may 42
accept grants, contributions, devises, and gifts, which shall be kept in a separate fund, which shall 43
be nonreverting, and shall be used to fund the operations of the Center and the AMBER Alert 44
System. 45
"§ 143B-1772. North Carolina Missing Endangered System Silver Alert established. 46
(a) There is established within the North Carolina Center for Missing Persons the Missing 47
Endangered System. Silver Alert. The purpose of the Missing Endangered System Silver Alert 48
is to provide a statewide system for the rapid dissemination of information regarding a missing 49
person or missing child aged 65 or older who is believed to be suffering from dementia, 50
Alzheimer's disease, or a cognitive impairment that, in light of the person's or child's missing 51 General Assembly Of North Carolina Session 2025
House Bill 74-Second Edition Page 7
status, requires the person or child to be protected from potential abuse or other physical harm, 1
neglect, or exploitation.that causes an irreversible deterioration of intellectual faculties that 2
makes them unable to meet their own needs or to seek help without assistance. 3
(b) If the Center or a law enforcement agency receives a request that involves a missing 4
person or missing child as described in subsection (a) of this section, and at the time of receipt 5
no more than 72 hours have passed since the person or child went missing, the Center or law 6
enforcement agency shall issue an alert providing for rapid dissemination of information 7
statewide regarding the missing person or missing child. person. The Center or law enforcement 8
agency shall make every effort to disseminate the information as quickly as possible when the 9
person's or child's status as missing has been reported to a law enforcement agency.agency, 10
including procedures for the use of the Wireless Emergency Alert. 11
(c) The Center and all law enforcement agencies shall adopt guidelines and develop 12
procedures for issuing an a 90-day alert for missing persons and missing children as described in 13
subsection (a) of this section and shall provide education and training to encourage radio and 14
television broadcasters to participate in the alert. The guidelines and procedures shall ensure that 15
specific health information about the missing person or missing child is not made public through 16
the alert or otherwise. 17
(d) The Center and all law enforcement agencies shall consult with the Department of 18
Transportation and develop a procedure for the use of overhead permanent changeable message 19
signs to provide information on the missing person or missing child meeting the criteria of this 20
section when information is available that would enable motorists to assist in the recovery of the 21
missing person or missing child. person. The Center and the Department of Transportation shall 22
develop guidelines for the content, length, and frequency of any message to be placed on an 23
overhead permanent changeable message sign. 24
"§ 143B-1773. North Carolina Blue Alert System established. 25
… 26
(c) The Center shall adopt guidelines and develop procedures for the statewide 27
implementation of the Blue Alert System and shall provide education and training to encourage 28
radio and television broadcasters to participate in the alert.alert, including procedures for the use 29
of the Emergency Alert System and the Wireless Emergency Alert. 30
… 31
"§ 143B-1774. North Carolina Missing Endangered Alert established. 32
(a) There is established within the North Carolina Center for Missing Persons the Missing 33
Endangered Alert. The purpose of the Missing Endangered Alert is to provide a statewide system 34
for the rapid dissemination of information regarding a missing person, aged 64 or younger, or 35
missing child who is believed to be suffering from dementia, Alzheimer's disease, or a cognitive 36
impairment that causes an irreversible deterioration of intellectual faculties that makes them 37
unable to meet their own needs or to seek help without assistance and that is not a risk to the 38
general public. 39
(b) If the Center receives a request that involves a missing person or missing child as 40
described in subsection (a) of this section, and at the time of receipt no more than 72 hours have 41
passed since the person or child went missing, the Center shall issue an alert providing for rapid 42
dissemination of information statewide regarding the missing person or missing child. The Center 43
shall make every effort to disseminate the information as quickly as possible when the person's 44
or child's status as missing has been reported to a law enforcement agency, including procedures 45
for the use of the Wireless Emergency Alert. 46
(c) The Center shall adopt guidelines and develop procedures for issuing a 90-day alert 47
for missing persons and missing children as described in subsection (a) of this section and shall 48
provide education and training to encourage radio and television broadcasters to participate in 49
the alert. The guidelines and procedures shall ensure that specific health information about the 50
missing person or missing child is not made public through the alert or otherwise. 51 General Assembly Of North Carolina Session 2025
Page 8 House Bill 74-Second Edition
(d) The Center shall consult with the Department of Transportation and develop a 1
procedure for the use of overhead permanent changeable message signs to provide information 2
on the missing person or missing child meeting the criteria of this section when information is 3
available that would enable motorists to assist in the recovery of the missing person or missing 4
child. The Center and the Department of Transportation shall develop guidelines for the content, 5
length, and frequency of any message to be placed on an overhead permanent changeable 6
message sign. 7
"§ 143B-1775. North Carolina Ashanti Alert established. 8
(a) There is established within the North Carolina Center for Missing Persons the Ashanti 9
Alert. The purpose of the Ashanti Alert is to provide a statewide system for the rapid 10
dissemination of information regarding a missing person over 18 years of age that is suspected 11
to have been abducted and there is both abductor and vehicle information available. 12
(b) If the Center receives a request that involves a missing person as described in 13
subsection (a) of this section, and at the time of receipt no more than 72 hours have passed since 14
the person went missing, the Center shall issue an alert providing for rapid dissemination of 15
information statewide regarding the missing person. The Center shall make every effort to 16
disseminate the information as quickly as possible when the person's status as missing has been 17
reported to a law enforcement agency, including procedures for the use of the Emergency Alert 18
System and the Wireless Emergency Alert. 19
(c) The Center shall adopt guidelines and develop procedures for issuing a 24-hour alert 20
for missing persons as described in subsection (a) of this section and shall provide education and 21
training to encourage radio and television broadcasters to participate in the alert. 22
(d) The Center shall consult with the Department of Transportation and develop a 23
procedure for the use of overhead permanent changeable message signs to provide information 24
on the missing person or missing child meeting the criteria of this section when information is 25
available that would enable motorists to assist in the recovery of the missing person or missing 26
child. The Center and the Department of Transportation shall develop guidelines for the content, 27
length, and frequency of any message to be placed on an overhead permanent changeable 28
message sign. 29
"§ 143B-1776. North Carolina Missing – Weather Alert established. 30
(a) There is established within the North Carolina Center for Missing Persons the Missing 31
– Weather Alert. The purpose of the Missing – Weather Alert is to provide a statewide system 32
for the rapid dissemination of information regarding a missing person or child that is missing 33
during times of extreme heat or cold and is not in a vehicle, or immediately following a significant 34
weather event. 35
(b) If the Center receives a request that involves a missing person as described in 36
subsection (a) of this section, and at the time of receipt no more than 72 hours have passed since 37
the person went missing, the Center shall issue an alert providing for rapid dissemination of 38
information statewide regarding the missing person. The Center shall make every effort to 39
disseminate the information as quickly as possible, including procedures for the use of the 40
Wireless Emergency Alert. 41
(c) The Center shall adopt guidelines and develop procedures for issuing a 30-day alert 42
for missing persons as described in subsection (a) of this section and shall provide education and 43
training to encourage radio and television broadcasters to participate in the alert." 44
SECTION 5.1.(e) The State Highway Patrol shall adopt rules, or amendments to 45
rules, consistent with the provisions of this act. The State Highway Patrol may use the procedure 46
set forth in G.S. 150B-21.1 to adopt or amend any rules as required under this section. 47
48
TRANSFER PERSONNEL FROM THE DEPARTMENT OF PUBLIC SAFETY AND 49
THE DEPARTMENT OF INFORMATION TECHNOLOGY TO THE STATE 50
HIGHWAY PATROL 51 General Assembly Of North Carolina Session 2025
House Bill 74-Second Edition Page 9
SECTION 5.2.(a) The following positions, including the salaries, property, and 1
other funds allocated for the positions, are transferred from the Department of Public Safety to 2
the State Highway Patrol: 3
Position Position Number 4
Engineering Director 60000986 5
User Support Tech I 60056437 6
Payroll Clerk V 60056477 7
Accountant 60056455 8
Accounting Technician 60056412 9
Accounting Technician 60000910 10
Services/Commodities Manager 60056501 11
SBI Procurement Specialist III 60056404 12
Workers Compensation Program Assistant 60089565 13
Employee Relations Consultant 60056301 14
Manager Salary Administration and Employee 15
Records 60056266 16
Class and Compensation Consultant Lead 60001077 17
HR Benefits Manager 60056274 18
Disability/Retirement Case Specialist 60056291 19
Salary Administration Consultant 60056275 20
Communications/Public Records Assistant 60076657 21
Digital Media Specialist 65012539 22
Graphic Designer II 65015611 23
Photographer 60084644 24
Dep Director of Comms and Digital Media 60084504 25
Public Information Officer (Videographer) 65027787 26
Assistant General Counsel 65025204 27
SECTION 5.2.(b) The following positions, including the salaries, property, and 28
other funds allocated for the positions, are transferred from the Department of Information 29
Technology to the State Highway Patrol: 30
Position Position Number 31
User Support Specialist 60093567 32
Network Engineer 60089745 33
Application Systems Specialist 60056201 34
User Support Analyst 65000712 35
User Support Analyst 60089766 36
User Support Analyst 60056165 37
38
TRANSFER CERTAIN NON -SWORN PERSONNEL FROM THE LICENSE AND 39
THEFT BUREAU OF THE DEPARTMENT OF TRANSPORTATION TO THE STATE 40
HIGHWAY PATROL 41
SECTION 5.3. The following positions, including the salaries, property, and other 42
funds allocated for the positions, are transferred from the Department of Transportation, Division 43
of Motor Vehicles License and Theft Bureau, to the State Highway Patrol: 44
Position Position Number 45
Program Coordinator III 60030052 46
Administrative Specialist II 60030907 47
Administrative Specialist I 60031075 48
Program Analyst I 60031189 49
Program Analyst I 60031341 50
Administrative Specialist II 60029790 51 General Assembly Of North Carolina Session 2025
Page 10 House Bill 74-Second Edition
Administrative Specialist I 60031033 1
Program Coordinator II 60030760 2
Program Coordinator II 60030921 3
Electronics Technician II 60030924 4
Administrative Specialist I 60030909 5
Program Coordinator III 60092620 6
Program Coordinator III 60030920 7
Program Coordinator III 60030933 8
Program Coordinator III 60090052 9
Program Supervisor I 60092613 10
Program Supervisor I 60092614 11
Program Coordinator III 60092615 12
Program Coordinator III 60092616 13
Program Coordinator III 60092617 14
Program Coordinator III 60092618 15
Program Coordinator III 60092619 16
Program Coordinator III 60030904 17
Program Coordinator III 60092622 18
Program Coordinator III 60092623 19
Program Coordinator III 60092625 20
Program Coordinator III 60092626 21
Program Coordinator III 60092627 22
Program Coordinator I 60029918 23
Program Supervisor I 60030890 24
Program Coordinator III 60030922 25
Program Coordinator I 60031074 26
Program Coordinator I 60031114 27
Program Coordinator I 60031142 28
Program Coordinator I 60031143 29
Administrative Specialist I 60030847 30
Program Coordinator III 60030894 31
Administrative Specialist I 60030899 32
Program Supervisor I 60030917 33
Administrative Specialist I 60030934 34
Administrative Specialist I 60031312 35
Program Coordinator III 65037940 36
Program Coordinator III 65037942 37
Program Supervisor I 65037786 38
Program Coordinator III 65037941 39
Program Supervisor I 60030929 40
Program Coordinator III 60030844 41
Program Coordinator I 60030893 42
Program Coordinator III 60030898 43
Program Coordinator III 60031077 44
Program Coordinator I 60031284 45
Program Coordinator I 60031320 46
Program Coordinator III 60030916 47
Program Coordinator III 60030905 48
Program Coordinator III 60092628 49
Program Coordinator III 60092629 50
Administrative Specialist I 60030937 51 General Assembly Of North Carolina Session 2025
House Bill 74-Second Edition Page 11
Administrative Specialist I 60030962 1
Administrative Specialist I 60029801 2
Administrative Specialist I 60031024 3
Administrative Specialist I 60030997 4
Administrative Specialist I 60031026 5
Administrative Specialist I 60030996 6
Administrative Specialist I 60031140 7
Administrative Specialist I 60030995 8
Administrative Specialist I 60031193 9
Program Coordinator III 60031112 10
Program Coordinator III 60031115 11
Administrative Specialist I 60031076 12
13
PART VI. GENERAL GOV ERNMENT 14
15
VARIOUS DIRECTED GRANT REVISIONS 16
SECTION 6.1. Section 6.1(a) of S.L. 2024-1, as amended by Section 2E.1(a) of S.L. 17
2024-57, reads as rewritten: 18
"SECTION 6.1.(a) Notwithstanding any provision of S.L. 2023-134 or the Committee 19
Report referenced in Section 43.2 of that act to the contrary, the following directed grants to be 20
allocated by the Office of State Budget and Management – Special Appropriations for the 21
2023-2024 fiscal year are amended as follows: 22
… 23
(2) The directed grant to the Banner American Legion Auxiliary Unit #109, Inc., 24
in the sum of one hundred twenty-five thousand dollars ($125,000) in 25
nonrecurring funds for the 2023-2024 fiscal year shall instead not be provided 26
to Banner Post 109, Incorporated.Incorporated, but shall be provided to 27
Banner American Legion Auxiliary Unit #109, Inc., as provided in S.L. 28
2023-134. 29
… 30
(37) Budgeted receipts from the ARPA Temporary Savings Fund to provide 31
additional funds to Wake Forest Institute for Regenerative Medicine in the 32
sum of five million dollars ($5,000,000) in nonrecurring funds for each fiscal 33
year of the 2023-2025 fiscal biennium shall instead not be provided to 34
RegenMed Development Organization, a 501(c)3 organization.organization 35
but shall be provided to Wake Forest Institute for Regenerative Medicine as 36
provided in S.L. 2023-134. 37
… 38
(48) The directed grant to Greater Rocky Mount Family Medical Center, Inc., in 39
the sum of three hundred fifty thousand dollars ($350,000) in nonrecurring 40
funds for the 2023-2024 fiscal year to expand dental and behavioral health 41
services shall instead be provided to the Opportunities Industrialization 42
Center, Incorporated, of Rocky Mount. 43
(49) The directed grant to Open Door Ministries of High Point Foundation, Inc., in 44
the sum of five hundred thousand dollars ($500,000) in nonrecurring funds for 45
the 2023-2024 fiscal year shall instead be provided to Open Door Ministries 46
of High Point, Inc. 47
(50) The directed grant to the Union County Schools in the sum of eight million 48
dollars ($8,000,000) in nonrecurring funds for the 2023-2024 fiscal year for 49
an athletic facility and related equipment shall not revert on June 30, 2026, 50
but shall remain available until June 30, 2028. 51 General Assembly Of North Carolina Session 2025
Page 12 House Bill 74-Second Edition
(51) The directed grant to the Gray's Creek Ruritan Club 516 in the sum of two 1
hundred forty-five thousand dollars ($245,000) in nonrecurring funds for the 2
2023-2024 fiscal year to support its mission of community improvement shall 3
not be provided to the Gray's Creek Ruritan Club 516 but instead shall be 4
provided as follows: 5
a. Sixty-five thousand dollars ($65,000) to the Kidsville News! Literacy 6
and Education Foundation, Inc., for the Summer Reading, Literacy, 7
and Education Program. 8
b. One hundred eighty thousand dollars ($180,000) to the North Carolina 9
Human Trafficking Commission for the WORTH Court to support 10
mental health and substance abuse services for human trafficking 11
survivors in Cumberland County." 12
13
UNDERINSURED MOTORIST INSURANCE AMENDMENT EFFECTIVE DATE 14
TECHNICAL CORRECTION 15
SECTION 6.2. Section 8 of S.L. 2024-29 is amended by adding a new subsection to 16
read: 17
"SECTION 8.(d) Subsection (a) of this section becomes effective July 1, 2025, and applies 18
to policies issued or renewed on or after that date." 19
20
ASSIGN SPACE IN THE ARCHDALE BUILDING TO THE STATE HIGHWAY 21
PATROL 22
SECTION 6.3. The Department of Administration shall reassign the office space on 23
the second and fourth floors of the Archdale Building located in Raleigh, North Carolina, to the 24
State Highway Patrol. All equipment, furnishings, and other fixtures located on the second and 25
fourth floors of the Archdale Building as of the effective date of this section and owned by the 26
State shall remain on the second and fourth floors of the Archdale Building for use by the State 27
Highway Patrol. Nothing in this section shall be construed as prohibiting the disposal, removal, 28
or replacement of the equipment, furnishings, and other fixtures described in this section after 29
the State Highway Patrol has moved into the space described in this section. 30
31
PART VII. STATEWIDE 32
33
SCIF GRANT CHANGES 34
SECTION 7.1.(a) Section 40.8(a) of S.L. 2023-134, as enacted by Section 9.1(a) of 35
S.L. 2024-1, is amended by adding a new subdivision to read: 36
"(4) The funding allocated to the City of Charlotte in the sum of seventeen million 37
five hundred thousand dollars ($17,500,000) for the 2023-2024 fiscal year and 38
the sum of two million five hundred thousand dollars ($2,500,000) for the 39
2024-2025 fiscal year shall instead be used to provide grants to the following 40
entities and purposes: 41
a. Five million dollars ($5,000,000) to Appalachian State University to 42
be used for the renovation project at Edwin Duncan Hall. 43
b. One million five hundred thousand dollars ($1,500,000) to 44
Appalachian State University to be used for the renovation project at 45
Wey Hall. 46
c. Two million five hundred thousand dollars ($2,500,000) to 47
Appalachian State University to be used for the addition and 48
renovation project at Peacock Hall. 49
d. Four million one hundred thousand dollars ($4,100,000) to Wayne 50
County for a capital project at Rosewood Middle School. 51 General Assembly Of North Carolina Session 2025
House Bill 74-Second Edition Page 13
e. Two hundred fifty thousand dollars ($250,000) to The Hudson 1
Volunteer Fire Department, Inc., to be used for capital improvements 2
and equipment. 3
f. Two million dollars ($2,000,000) to North Catawba Fire-Rescue 4
Department, Inc., to be used for capital improvements and equipment. 5
g. Three hundred twenty-five thousand dollars ($325,000) to Grace 6
Chapel Volunteer Fire Department, Inc., to be used for capital 7
improvements and equipment. 8
h. Two million dollars ($2,000,000) to the City of Lenoir to be used for 9
Harpers Avenue Area infrastructure improvements. 10
i. One hundred ten thousand dollars ($110,000) to King's Creek 11
Volunteer Fire Department, Inc., to be used for capital improvements 12
and equipment. 13
j. Two hundred thousand dollars ($200,000) to The Gamewell Volunteer 14
Fire Department, Inc., to be used for capital improvements and 15
equipment. 16
k. Two hundred seventy-five thousand dollars ($275,000) to Caldwell 17
County to be used for a new ambulance. 18
l. One hundred forty thousand dollars ($140,000) to Collettsville 19
Volunteer Fire Department, Inc., to be used for capital improvements 20
and equipment. 21
m. Six hundred thousand dollars ($600,000) to Patterson Fire-Rescue 22
Department, Inc., to be used for capital improvements and equipment. 23
n. One million dollars ($1,000,000) to the Town of Hudson for 24
downtown infrastructure improvements." 25
SECTION 7.1.(b) Section 40.17(a) of S.L. 2021-180, as enacted by Section 9.1(d) 26
of S.L. 2021-189 and amended by Section 18.1 of S.L. 2022-6, Section 16 of S.L. 2022-11, 27
Section 40.2 of S.L. 2022-74, Section 40.5(n) of S.L. 2023-134, and Section 9.1(c) of S.L. 28
2024-1, is amended by adding a new subdivision to read: 29
"(82) The remaining amount of funding allocated to Clay County in the sum of two 30
million dollars ($2,000,000) in nonrecurring funds for the 2021-2022 fiscal 31
year for a new 911 call center may also be used for capital costs and equipment 32
associated with the construction of a farmers market." 33
34
PART VIII. TRANSPORTATION 35
36
BRIDGE NAMING CLARIFICATION 37
SECTION 8.1. Section 41.7 of S.L. 2023-134 reads as rewritten: 38
"SECTION 41.7. Notwithstanding any provision of law to the contrary, the Department of 39
Transportation shall designate as follows: 40
… 41
(3) The bridge on U.S. Highway 74 that crosses over the Catawba River at the 42
Mecklenburg County and Gaston County line and is numbered 350091 by the 43
Department as the "Representative Dana Bumgardner Bridge." 44
…." 45
46
PART IX. FINANCE 47
48
INCENTIVIZE FARMLAND PRESERVATION, FISH AND WILDLIFE 49
CONSERVATION, AND MILITARY BUFFERS 50 General Assembly Of North Carolina Session 2025
Page 14 House Bill 74-Second Edition
SECTION 9.1.(a) G.S. 105-130.34, as enacted by Section 15 of S.L. 2024-32, reads 1
as rewritten: 2
"§ 105-130.34. Credit for certain real property donations. 3
(a) Credit. Credit; Ceiling. – Subject to the limitations in this section, a C Corporation 4
that makes a qualified donation of real property located in North Carolina during the taxable year 5
that is useful (i) for forestland or farmland preservation, (ii) for fish and wildlife conservation, 6
(iii) as a buffer to limit land use activities that would restrict, impede, or interfere with military 7
training, testing, or operations on a military installation or training area or otherwise be 8
incompatible with the mission of the installation, (iv) for floodplain protection in a county that, 9
in the five years preceding the donation, was the subject of a Type II or Type III gubernatorial 10
disaster declaration, as provided in G.S. 166A-19.21, as a result of a natural disaster, (v) for 11
historic landscape conservation, or (vi) for public trails or access to public trails is allowed a 12
credit against the tax imposed by this Part equal to twenty-five percent (25%) of the fair market 13
value of the donated property. qualified donation. The aggregate amount of credit allowed to a 14
corporation in a taxable year under this section for one or more qualified donations made during 15
the taxable calendar year, whether made directly or indirectly as an owner of a pass-through 16
entity, may not exceed five hundred thousand dollars ($500,000). The credit may not be taken 17
for the year in which the qualified donation is made but may be taken for in the taxable year 18
beginning during in the calendar year in which the application for the credit becomes effective 19
as provided in subsection (a2) of this section. 20
(a1) Definitions. – The following definitions apply in this section: 21
(1) Cap remainder. – The amount that is the difference between the maximum 22
amount and the amount of prioritized credit requests allowed. 23
(2) Maximum amount. – The amount set out in subsection (e) of this section that 24
is the total aggregate amount of all credits allowed to taxpayers under this 25
section and G.S. 105-153.11 for qualified donations made in a calendar year. 26
(3) Nonprioritized credit request. – A credit request under this section or 27
G.S. 105-153.11 that is for a qualified donation other than a prioritized 28
donation. 29
(4) Prioritized amount. – The amount set out in subsection (e) of this section that 30
is for prioritized credit requests. 31
(5) Prioritized credit request. – A credit requested under this section or 32
G.S. 105-153.11 that is for a qualified donation for forestland or farmland 33
preservation. 34
(6) Qualified Donation. donation. – A qualified donation of real property is a 35
donation of a real property interest located in North Carolina that meets all of 36
the following conditions: 37
(1)a. The real property It is donated in perpetuity for one of the qualifying 38
following uses listed in subsection (a) of this section and is accepted 39
in perpetuity for the qualifying use for which the qualified real 40
property interest is donated.donated: 41
1. Forestland or farmland preservation. 42
2. Fish or wildlife conservation. 43
3. A buffer to limit land use activities that would restrict, impede, 44
or interfere with military training, testing, or operations on a 45
military installation or training area or otherwise be 46
incompatible with the mission of the installation. 47
4. Floodplain protection in a county that, in the five years 48
preceding the donation, was the subject of a Type II or Type 49
III gubernatorial disaster declaration, as provided in 50
G.S. 166A-19.21, as a result of a natural disaster. 51 General Assembly Of North Carolina Session 2025
House Bill 74-Second Edition Page 15
5. Historic landscape conservation. 1
6. Public trails or access to public trails. 2
(2)b. The person to whom the property It is donated must be to the State, a 3
local government, or a body that is both organized to receive and 4
administer lands for conservation purposes and qualified to receive 5
charitable contributions pursuant to G.S. 105-130.9. Lands required to 6
be dedicated pursuant to local governmental regulation or ordinance 7
and dedications made to increase building density levels permitted 8
under a regulation or ordinance are not eligible for this credit. 9
(7) Real property interest. – A qualified real property interest as defined in section 10
170(h)(2) of the Code. 11
(8) Total requested credits. – All credits applied for under this section and under 12
G.S. 105-153.11 for all qualified donations made in a calendar year from 13
timely filed applications. 14
(a2) Application. – To claim the credit provided in this section, a corporation must file an 15
application with the Secretary for the credit. The application must be filed on or before April 15 16
of the year following the calendar year in which the donation was made. An application is 17
effective for the year in which it is timely filed. The Secretary may not accept late applications 18
under this subsection. The application must be on a form prescribed by the Secretary and include 19
any information required by the Secretary demonstrating that the donation has met the conditions 20
for qualifying to qualify for the credit, including the following items: 21
(1) A copy of the certification by the Department of Natural and Cultural 22
Resources that identifies identifying which of the valid public benefits listed 23
in subsection (a) subdivision (6) of subsection (a1) of this section for which 24
the donated real property interest is suitable. 25
(2) A self-contained appraisal report or summary appraisal report as defined in 26
Standards Rule 2-2 in the latest edition of the Uniform Standards of 27
Professional Appraisal Practice as promulgated by the Appraisal Foundation 28
for the donated property. real property interest. For fee simple absolute 29
donations of real property, a corporation may submit documentation of the 30
county's appraised value of the donated real property, as adjusted by the sales 31
assessment ratio, in lieu of an appraisal report. 32
(a3) Substantiation. – A corporation claiming a credit under this section must maintain and 33
make available for inspection by the Secretary any records the Secretary considers necessary to 34
determine and verify the amount of the credit allowed to which the corporation is entitled. 35
corporation. The burden of proving eligibility for the credit and the amount of the credit rests 36
upon the corporation, and no credit may be allowed to a corporation that fails to maintain 37
adequate records or to make them available for inspection. 38
(b) Limitation. – The credit allowed by this section may not exceed the amount of tax 39
imposed by this Part for the taxable year reduced by the sum of all credits allowed, except 40
payments of tax made by or on behalf of the corporation. 41
(c) Carryforward. – Any unused portion of this the credit allowed may be carried forward 42
for the next succeeding five years. 43
(d) No Double Benefit. – That portion of a qualifying A qualified donation that is the 44
basis for a credit allowed under this section is not eligible for deduction as a charitable 45
contribution under G.S. 105-130.9. 46
(e) Ceiling; Use Aggregate Cap; Allocation. – The total aggregate maximum amount of 47
all credits allowed to taxpayers under this section and G.S. 105-153.11 for qualified donations 48
made in a taxable year may not exceed five million dollars ($5,000,000), of which three million 49
two hundred fifty thousand dollars ($3,250,000) is reserved for credits to taxpayers that have 50
made a qualified donation of real property for forestland or farmland conservation. If funds 51 General Assembly Of North Carolina Session 2025
Page 16 House Bill 74-Second Edition
reserved for credits for qualified donations of real property for forestland or farmland 1
conservation remain after disposition of all timely filed applications for that type of credit, the 2
Secretary shall allocate any funds remaining to credits for other types of qualified donations 3
under this section. The Secretary shall, first, fully fund any prorated credits in accordance with 4
subsection (f) of this section and, second, if funds remain after fully funding prorated credits, 5
reopen the application period for credits under this section for which funds have become 6
available. If the Secretary reopens the application period and notwithstanding the application 7
deadline in subsection (a2) of this section, the additional applications must be filed with the 8
Secretary on or before October 15 of the year following the calendar year in which the donation 9
was made. The Secretary may not accept late additional applications permitted under this 10
subsection. The Secretary's determinations based on additional applications timely filed in 11
accordance with this subsection are final.a prioritized amount. If the total requested credits are 12
equal to or less than the maximum amount, the Secretary shall allow the total requested credits. 13
If the total requested credits are greater than the maximum amount, the Secretary shall allocate 14
the total requested credits in accordance with subsection (f) of this section. 15
(f) Reduction. – The Secretary shall calculate the total amount of credits claimed from 16
applications timely filed under subsection (a2) of this section. If the total amount of requested 17
credits claimed for donations made in a calendar year exceeds this exceed the maximum amount, 18
the Secretary shall allow a portion of prorate the total requested credits claimed by allocating the 19
maximum amount in credits in proportion to the size of the credit claimed by each taxpayer. in 20
accordance with this subsection. If a requested credit claimed under this section is reduced as 21
provided in this subsection, the Secretary shall notify the corporation of the amount of the 22
reduction of the credit on or before December 31 of the year following the calendar year in which 23
the qualified donation was made. The Secretary's allocations based on applications filed under 24
subsection (a2) of this section are final and shall not be adjusted to account for credits applied 25
for requested but not claimed.reduced under this subsection. The total requested credits shall be 26
reduced as follows: 27
(1) If the total requested credits are (i) all prioritized credit requests or (ii) all 28
nonprioritized credit requests, then the Secretary shall prorate the total 29
requested credits based on the proportion of each requested credit to the total 30
requested credits. 31
(2) If the total requested credits are (i) a combination of prioritized credit requests 32
and nonprioritized credit requests and (ii) the amount of prioritized credit 33
requests is equal to or less than the prioritized amount, the Secretary shall first 34
allow the prioritized credit requests. The Secretary shall then prorate the cap 35
remainder based on the proportion of each of the remaining requested credits 36
to the total requested credits less the prioritized amount. 37
(3) If the total amount of requested credits is (i) a combination of prioritized credit 38
requests and nonprioritized credit requests and (ii) the amount of prioritized 39
credit requests is greater than the prioritized amount, the Secretary shall first 40
prorate the prioritized credit requests based on the proportion of each 41
prioritized credit request to the prioritized amount. The Secretary shall then 42
prorate the cap remainder, including the remainder of any prioritized credit 43
requests, based on the proportion of each of the remaining requested credits 44
to the total requested credits less the prioritized amount. 45
(g) Report. – The Department must include in the economic incentives report required by 46
G.S. 105-256 the following information: 47
(1) The number of C Corporations that took the credit allowed under this section. 48
(2) The total amount of credits claimed by conservation purpose.public benefit as 49
listed in subdivision (6) of subsection (a1) of this section. 50
(3) The total amount of credits carried forward. 51 General Assembly Of North Carolina Session 2025
House Bill 74-Second Edition Page 17
(4) The total cost to the General Fund of the credits taken." 1
SECTION 9.1.(b) G.S. 105-153.11, as enacted by Section 15 of S.L. 2024-32, reads 2
as rewritten: 3
"§ 105-153.11. Credit for certain real property donations. 4
(a) Credit. – Subject to the limitations in this section, an individual or a pass-through 5
entity that makes a qualified donation of real property located in North Carolina during the 6
taxable year that is useful (i) for forestland or farmland preservation, (ii) for fish and wildlife 7
conservation, (iii) as a buffer to limit land use activities that would restrict, impede, or interfere 8
with military training, testing, or operations on a military installation or training area or otherwise 9
be incompatible with the mission of the installation, (iv) for floodplain protection in a county 10
that, in the five years preceding the donation, was the subject of a Type II or Type III 11
gubernatorial disaster declaration, as provided in G.S. 166A-19.21, as a result of a natural 12
disaster, (v) for historic landscape conservation, or (vi) for public trails or access to public trails 13
is allowed a credit against the tax imposed by this Part equal to twenty-five percent (25%) of the 14
fair market value of the donated property. qualified donation. The credit may not be taken for the 15
year in which the qualified donation is made but may be taken for in the taxable year beginning 16
during in the calendar year in which the application for the credit becomes effective as provided 17
in subsection (a2) of this section. 18
(a1) Definitions. – The following definitions apply in this section: 19
(1) Cap remainder. – The amount that is the difference between the maximum 20
amount and the amount of prioritized credit requests allowed. 21
(2) Maximum amount. – The amount set out in subsection (g) of this section that 22
is the total aggregate amount of all credits allowed to taxpayers under this 23
section and G.S. 105-130.34 for qualified donations made in a calendar year. 24
(3) Nonprioritized credit request. – A credit request under this section or 25
G.S. 105-130.34 that is for a qualified donation other than a prioritized 26
donation. 27
(4) Prioritized amount. – The amount set out in subsection (g) of this section that 28
is for prioritized credit requests. 29
(5) Prioritized credit request. – A credit requested under this section or 30
G.S. 105-130.34 that is for a qualified donation for forestland or farmland 31
preservation. 32
(6) Qualified Donation. donation. – A qualified donation of real property is a 33
donation of a real property interest located in North Carolina that meets all of 34
the following conditions: 35
(1)a. The property It is donated in perpetuity for one of the qualifying 36
following uses listed in subsection (a) of this section and is accepted 37
in perpetuity for the qualifying use for which the real property interest 38
is donated.donated: 39
1. Forestland or farmland preservation. 40
2. Fish or wildlife conservation. 41
3. A buffer to limit land use activities that would restrict, impede, 42
or interfere with military training, testing, or operations on a 43
military installation or training area or otherwise be 44
incompatible with the mission of the installation. 45
4. Floodplain protection in a county that, in the five years 46
preceding the donation, was the subject of a Type II or Type 47
III gubernatorial disaster declaration, as provided in 48
G.S. 166A-19.21, as a result of a natural disaster. 49
5. Historic landscape conservation. 50
6. Public trails or access to public trails. 51 General Assembly Of North Carolina Session 2025
Page 18 House Bill 74-Second Edition
(2)b. The person to whom the property It is donated must be to the State, a 1
local government, or a body that is both organized to receive and 2
administer lands for conservation purposes and qualified to receive 3
charitable contributions under the Code. Lands required to be 4
dedicated pursuant to local governmental regulation or ordinance and 5
dedications made to increase building density levels permitted under a 6
regulation or ordinance are not eligible for this credit. 7
(7) Real property interest. – A qualified real property interest as defined in section 8
170(h)(2) of the Code. 9
(8) Taxed pass-through entity. – As defined in G.S. 105-153.3. 10
(9) Total requested credits. – All credits applied for under this section and under 11
G.S. 105-130.34 for all qualified donations made in a calendar year from 12
timely filed applications. 13
(a2) Application. – To claim a credit allowed under this section, an individual or a 14
pass-through entity must file an application with the Secretary for the credit. The application 15
must be filed on or before April 15 of the year following the calendar year in which the donation 16
was made. An application is effective for the year in which it is timely filed. The Secretary may 17
not accept late applications under this subsection. The application must be on a form prescribed 18
by the Secretary and include any information required by the Secretary demonstrating that the 19
donation has met the conditions for qualifying to qualify for the credit, including the following 20
items: 21
(1) A copy of the certification by the Department of Natural and Cultural 22
Resources that identifies identifying which of the valid public benefits listed 23
in subsection (a) subdivision (6) of subsection (a1) of this section for which 24
the donated real property interest is suitable. The certification for a qualified 25
donation made by a pass-through entity must be filed by the pass-through 26
entity. 27
(2) A self-contained or summary appraisal report as defined in Standards Rule 28
2-2 in the latest edition of the Uniform Standards of Professional Appraisal 29
Practice as promulgated by the Appraisal Foundation for the donated property. 30
real property interest. For fee simple absolute donations of real property, an 31
individual or pass-through entity may submit documentation of the county's 32
appraised value of the donated real property, as adjusted by the sales 33
assessment ratio, in lieu of an appraisal report. 34
(a3) Substantiation. – An individual or pass-through entity claiming a credit under this 35
section must maintain and make available for inspection by the Secretary any records the 36
Secretary considers necessary to determine and verify the amount of the credit allowed to which 37
the taxpayer is entitled. individual or the pass-through entity. The burden of proving eligibility 38
for the credit and the amount of the credit rests upon the individual or pass-through entity, and 39
no credit may be allowed to an individual or pass-through entity that fails to maintain adequate 40
records or to make them available for inspection. 41
(a4) Credit Ceiling for Individuals. – The aggregate amount of credit allowed to an 42
individual in a taxable year under this section for one or more qualified donations made during 43
the taxable year, donations, whether made directly or indirectly as owner of a pass-through entity, 44
may not exceed two hundred fifty thousand dollars ($250,000). In the case of property owned by 45
a married couple, if both spouses are required to file North Carolina income tax returns, the credit 46
allowed by this section may be claimed only if the spouses file a joint return. The aggregate 47
amount of credit allowed to a married couple filing a joint tax return may not exceed five hundred 48
thousand dollars ($500,000). If only one spouse is required to file a North Carolina income tax 49
return, that spouse may claim the credit allowed by this section on a separate return. 50 General Assembly Of North Carolina Session 2025
House Bill 74-Second Edition Page 19
(a5) Credit Ceiling for Pass-Through Entity. Entities. – The aggregate amount of credit 1
allowed to a pass-through entity in a taxable year under this section for one or more qualified 2
donations made during the taxable year, donations, whether made directly or indirectly as owner 3
of another pass-through entity, may not exceed five hundred thousand dollars ($500,000). Each 4
individual who is an owner of a pass-through entity is allowed as a credit an amount equal to the 5
owner's allocated share of the credit to which the pass-through entity is eligible under this 6
subsection, not to exceed two hundred fifty thousand dollars ($250,000). Each corporation that 7
is an owner of a pass-through entity is allowed as a credit an amount equal to the owner's allocated 8
share of the credit to which the pass-through entity is eligible under this subsection, not to exceed 9
five hundred thousand dollars ($500,000). If an owner's share of the pass-through entity's credit 10
is limited due to the maximum allowable credit under this section for a taxable year, the 11
pass-through entity and its owners may not reallocate the unused credit among the other owners. 12
(a6) Taxed Pass-Through Entity. Entities. – A taxed pass-through entity that engages in 13
an activity that makes it eligible for a credit under this section as an entity may not take the credit 14
at the entity level but must pass through to each of its owners the owner's distributive share of 15
the credit for which the taxed pass-through entity qualifies. Maximum dollar limits and other 16
limitations that apply in determining the amount of credit available to an owner of a pass-through 17
entity apply to the same extent in determining the amount of a credit for which the taxed 18
pass-through entity qualifies. For purposes of this subsection, the term "taxed pass-through 19
entity" is as defined in G.S. 105-153.3. 20
(b) Limitation. – The credit allowed by this section may not exceed the amount of tax 21
imposed by this Part for the taxable year reduced by the sum of all credits allowed, except 22
payments of tax made by or on behalf of the taxpayer.individual or pass-through entity. 23
(c) Carryforward. – Any unused portion of this the credit allowed may be carried forward 24
for the next succeeding five years. 25
(d) No Double Benefit. – That portion of a qualifying A qualified donation that is the 26
basis for a credit allowed under this section is not eligible for deduction as a charitable 27
contribution under G.S. 105-153.5(a)(2)a. 28
(e) Repealed by Session Law 2024-32, s. 15, effective for taxable years beginning on or 29
after January 1, 2025. 30
(f) Repealed by Session Laws 2007-309, s. 2, effective for taxable years beginning on or 31
after January 1, 2007. 32
(g) Ceiling; Use Aggregate Cap; Allocation. – The total aggregate maximum amount of 33
all tax credits allowed to taxpayers under this section and G.S. 105-130.4 G.S. 105-130.34 for 34
qualified donations made in a taxable calendar year may not exceed five million dollars 35
($5,000,000), of which three million two hundred fifty thousand dollars ($3,250,000) is reserved 36
for credits to taxpayers that have made a qualified donation of real property for forestland or 37
farmland conservation. If funds reserved for credits for qualified donations of real property for 38
forestland or farmland conservation remain after disposition of all timely filed applications for 39
that type of credit, the Secretary shall allocate any funds remaining to credits for other types of 40
qualified donations under this section. The Secretary shall, first, fully fund any prorated credits 41
in accordance with subsection (f) of this section and, second, if funds remain after fully funding 42
prorated credits, reopen the application period for credits under this section for which funds have 43
become available. If the Secretary reopens the application period and notwithstanding the 44
application deadline in subsection (a2) of this section, the additional applications must be filed 45
with the Secretary on or before October 15 of the year following the calendar year in which the 46
donation was made. The Secretary may not accept late additional applications permitted under 47
this subsection. The Secretary's determinations based on additional applications timely filed in 48
accordance with this subsection are final.a prioritized amount. If the total requested credits are 49
equal to or less than the maximum amount, the Secretary shall allow the total requested credits. 50 General Assembly Of North Carolina Session 2025
Page 20 House Bill 74-Second Edition
If the total requested credits are greater than the maximum amount, the Secretary shall allocate 1
the total requested credits in accordance with subsection (h) of this section. 2
(h) Reduction. – The Secretary of Revenue shall calculate the total amount of credits 3
claimed from applications timely filed under subsection (a2) of this section. If the total amount 4
of requested credits claimed for donations made in a calendar year exceeds this exceed the 5
maximum amount, the Secretary shall allow a portion of prorate the total requested credits 6
claimed by allocating the maximum amount in tax credits in proportion to the size of the credit 7
claimed by each individual or pass-through entity. in accordance with this subsection. If a 8
requested credit claimed under this section is reduced as provided in this subsection, the Secretary 9
shall notify the individuals or pass-through entities of the amount of the reduction of the credit 10
on or before December 31 of the year following the calendar year in which the qualified donation 11
was made. The Secretary's allocations based on applications filed under subsection (a2) of this 12
section are final and shall not be adjusted to account for credits applied for requested but not 13
claimed.reduced under this subsection. The total requested credits shall be reduced as follows: 14
(1) If the total requested credits are (i) all prioritized credit requests or (ii) all 15
nonprioritized credit requests, then the Secretary shall prorate the total 16
requested credits based on the proportion of each requested credit to the total 17
requested credits. 18
(2) If the total requested credits are (i) a combination of prioritized credit requests 19
and nonprioritized credit requests and (ii) the amount of prioritized credit 20
requests is equal to or less than the prioritized amount, the Secretary shall first 21
allow the prioritized credit requests. The Secretary shall then prorate the cap 22
remainder based on the proportion of each of the remaining requested credits 23
to the total requested credits less the prioritized amount. 24
(3) If the total amount of requested credits is (i) a combination of prioritized credit 25
requests and nonprioritized credit requests and (ii) the amount of prioritized 26
credit requests is greater than the prioritized amount, the Secretary shall first 27
prorate the prioritized credit requests based on the proportion of each 28
prioritized credit request to the prioritized amount. The Secretary shall then 29
prorate the cap remainder, including the remainder of any prioritized credit 30
requests, based on the proportion of each of the remaining requested credits 31
to the total requested credits less the prioritized amount. 32
(i) Report. – The Department must include in the economic incentives report required by 33
G.S. 105-256 the following information: 34
(1) The number of individuals and pass-through entities that took the credit 35
allowed under this section. 36
(2) The total amount of credits claimed by conservation purpose.public benefit as 37
listed in subdivision (6) of subsection (a1) of this section. 38
(3) The total amount of credits carried forward. 39
(4) The total cost to the General Fund of the credits taken." 40
SECTION 9.1.(c) This section is effective for taxable years beginning on or after 41
January 1, 2025, for donations made on or after January 1, 2025, and expires for taxable years 42
beginning on or after January 1, 2027, for donations made on or after January 1, 2027. 43
44
PART X. EFFECTIVE DATE 45
SECTION 10.1. Except as otherwise provided, this act is effective when it becomes 46
law. 47