Effective January 1, 2014, (1) repeals GS 105-151.33, which provided an education expenses tax credit for taxpayers with eligible dependent children effective as of January 1, 2016and(2) makes conforming changes, also repealing Section 2 of SL 2011-395 and GS 105-160.3(11).

Adds a new Part 1H, Special Education Scholarship Grants for Children with Disabilities, to GS Chapter 115C, Article 9. Provides definitions for the following terms as used in this Part: (1) authority, (2) eligible student, (3) nonpublic school, and (4) scholarship grants. Provides specific criteria that qualifies a child, under the age of 22, with a disability, as an eligible student under this Part.

Directs the North Carolina State Education Assistance Authority (Authority), no later than May 1 each year,to make applications availableto eligible students for scholarship grants toattend anynonpublic school and to receive special education and related services in a nonpublic school setting.Requires that priority in awarding scholarship grants is to be given to eligible students who received a grant during the previous semester. Provides that except as provided for prior grant recipients, scholarship grants are to be awarded to eligible students in the order in which the applications are received. Limits the grant amount to no more than $3,000 per semester per eligible student and only for the purpose of reimbursement of tuition, special education and related services, and for services provided to home-schooled students. Provides additional specifics regarding the awarding of scholarship grants.

Authorizes the Authority to establish rules and regulations for the administration and awarding of scholarship grants. Allows the Authority to require verification of eligibility for scholarship grants. Requires the Authority to make an annual report no later than July 1 to the Department of Public Instruction (DPI)on the number of students who (1) received scholarship grants for theprevious school yearand (2) were enrolled in an LEA for the semesterpreceding the semester for which a scholarship grant was awarded. Also requires the Authority to make an annual report to the Joint Legislative Oversight Committee no later than March 1 on the dispensation of scholarship grants.

Appropriates $3,670,500for fiscal year 2013-14 from the General Fund to the Authority and appropriates $4,341,000 for fiscal year 2014-15 from the General Fund to the Authority in recurring funds to implement the requirements of this act. Requires the Authority to use $3 million of the funds appropriated to the Authority in fiscal year 2013-14 and $3 million of the appropriation to the Authority in fiscal year 2014-15 to award scholarship grants to eligible students. Directs that of the remaining funds,up to $670,500 for 2013-14, and up to $1,341,000 for 2014-15, be transferred to DPI to use to conduct reevaluations of eligible students as required by proposed GS 115C-112.3(c), as enacted by this act. Allows the Authority to retain up to 1% of the appropriated funds for scholarship grants to cover administrative costs associated with the scholarship grant program. Effective July 1, 2013.

Effective July 1, 2013, (1) providesthat nothing in this act requires the General Assembly to appropriate funds to implement it; (2) repeals Article 32D Of GS Chapter 115C, which established a fund under the administration of the State Board of Education for special education and related services; and (3) directs the State Controller to transfer the fund balance from the Fund for Special Education and Related Services to the appropriate budget code for the 2013-14 fiscal year.

Provides that regardless of the definition for eligible student in GS 115C-112.2, as enacted by this act, an eligible dependent child of a taxpayer who received an education expenses tax credit under GS 105-151.33 for fall semester 2013-14 school year has met the eligibility requirements for a scholarship grant forthe spring semester of the 2013-14 school year.

Provides that this act does not affect any rights or liabilities, including any right to a refund or a tax creditarising or accruing under a statute that is amended or repealed by this act before the effective date of its amendment or repeal. Except as otherwise indicated, this act is effective when it becomes law. Regardless of the requirement in proposed GS 115C-112.3(a) that applications for the scholarship grant applications be made availableas of May 1, the applications for the 2014 spring semester must be made available no later than October 1, 2013.