Senate committee substitute to the 1st edition makes the following changes. Deletes the content of the previous edition and replaces it with the following.

Amends GS 105­-120.2 (Franchise or privilege tax on holding companies). Currently provides for the tax to be the higher of the two rates described in GS 105-­120.2(b)(1) and GS 105­-120.2(b)(2). Eliminates the specified rates. Instead provides for each rate to be set at the rate provided in GS 105-122(d2), as amended, per $1,000. Maintains that the first rate cannot be less than $200 or exceed $150,000. Now provides that the second rate is per $1,000 on the total actual investment in tangible property in the state as computed under GS 105-122(d), eliminating the requirement of using the greater of that option or 55% of the appraised value of all the real and tangible property in the state plus the appraised value of intangible property. Makes conforming repeal of GS 105-122(d)(2) (possibly intends subsection (d)).

Amends GS 105­-122 (Franchise or privilege tax on domestic and foreign corporations). Adjusts the tax rate to set the tax rate for an electric power company or a company that is a member of a qualified group at $1.50 per $1,000 of the company's tax base. Defines a qualified group to mean an affiliated group that has one or more members that is an electric company.  For all other C Corporations, lowers the rate to $1.29 (was $1.50) per $1,000 of the corporation's tax base. For S Corporations, lowers the rate to $1.29 from $1.50 per $1,000 of its tax based that exceeds $1 million, but maintains the rate of $200 for the first $1 million of the corporation's tax base. Effective for taxable years beginning on or after January 1, 2021, and applicable to the calculation of franchise tax reported on the 2020 and later corporate income tax returns.

Further amends GS 105-122, effective for taxable years beginning on or after January 1, 2022, and applicable to the calculation of franchise tax reported on the 2021 and later corporate income tax returns. Lowers the tax rate for C corporations, other than electric power companies or companies which are members of a qualified group, from $1.29 to $0.96 per $1,000 of the corporation's tax base. Also lowers the tax rate for S corporations from $1.29 to $0.96 per $1,000 of its base that exceeds the first $1 million. 

Further amends GS 105-122, effective for taxable years beginning on or after January 1, 2027, and applicable to the calculation of franchise tax reported on the 2026 and later corporate income tax returns. Eliminates the separate rate for electric power companies or companies that are members of a qualified group and sets a flat rate for all C corporations at $0.96 per $1,000 of the corporation's tax base.

Amends GS 143B-437.02A (The Film and Entertainment Grant Fund) by reducing the funds reserved for feature-length films from $3 million to $1.5 million if for theatrical viewing and from $1 million to $500,000 if a movie for television. Reduces the funds reserved for a television series from $1,000,000 to $500,000 per episode. Prohibits using the funds to provide a grant in excess of $15 million (was, $12 million) for a single season of a television series. Adds that an agreement awarding a grant for which the production company is entitled to payment for performance under the agreement is a binding obligation of the State and is not subject to State funds being appropriated by the General Assembly.

Makes conforming changes to the act's titles.