Creates new GS 105-153.12 (Qualified investment entity tax credit), which grants qualified investment entities, as defined in the section, a nonrefundable income tax credit of 35% of its qualified investment made under the section, 50% of which may be applied in the year the investment is made, and the remainder of which may be carried forward for up to 10 years.

For purposes of the section, a qualified investment is an investment by a qualified investment entity into an eligible business. An eligible business is defined as a business (i) organized no more than five years prior to receipt of the first qualifying investment, (ii) that employs 25 or fewer people in the State at the time it is registered as an eligible business, (iii) generates $2,000,000 or less in gross annual revenue, and (iv) has contribution to community infrastructure and resilience as its primary business purpose. Defines contribution to community infrastructure and resilience as services that have a positive impact on the physical and economic stability of one or more communities in the state, including transportation networks, communications systems, or utilities, disaster preparedness, and sustainable energy projects.

Establishes allocation rules for pass-through entities in the same manner as the shares of income or loss in the qualified investment entity, and requires the entity to make an irrevocable election with the Department of Revenue as to this allocation for the taxable year.

Imposes a total limitation of $5,000,000 on credits under the section each year, and an aggregate limit of $100,000 for each individual per year. Permits a 10-year carryforward period for unused credits.

Requires eligible businesses to register with the Secretary of State. Requires the secretary to report to the Joint Legislative Commission on Governmental Operations by January 31 of each year a list of all registered businesses, including the county, type of services, number of jobs created, and wages paid. Requires an aggregated statewide version of this report to be available on the secretary’s website.

Requires a qualified investment entity to apply to the Department of Revenue (Department) for tentative approval of the tax credit in the year when the credit will be claimed, and requires the department to provide an application and the method for how it is to be submitted. Requires the Department to report to the Joint Legislative Commission on Governmental Operations by March 31 of each year the number of applications received and approved, and tax credits approved. Also requires the Department to post this report on its website.

Applicable and effective for tax years beginning on or after January 1, 2025.