Amends GS 105-130.5 (applicable to corporate income tax) and GS 105-153.5 (applicable to individual income tax) to allow a deduction from income, any amount included in federal income tax income as non-like-kind property received in exchange under section 1031 of the IRS Code to the extent that it does not exceed the taxpayer’s basis in the property sold. Effective for taxable years beginning on or after January 1, 2026.