AN ACT TO PROVIDE POSITIVE SUSTAINABILITY FOR RURAL FARM FAMILIES THROUGH TAX RELIEF, NEW CROP RESEARCH FUNDING, AND EXPANDED ELIGIBILITY FOR CERTAIN CROP LICENSES.
Identical to S 663, filed 4/3/19.
Amends GS 105-153.5(b) by allowing a deduction when calculating North Carolina taxable income of up to $50,000 of income derived from agricultural land (as defined) that is appraised, assessed, and taxed under GS 105-277.3 (designating special classes of agricultural, horticultural, and forestland). Effective for taxable years beginning on or after January 1, 2019, and expires for taxable years beginning on or after January 1, 2021.
Amends GS 105-277.3 by amending the requirements for agricultural land to be designated as a special class of property to require the tract to meet the income requirements for agricultural land and consist of at least 5 acres (was, 10 acres) that are in actual production. Amends the requirements for horticultural land to be designated as a special class of property to require one of the included tracts to consist of at least three (was, five) acres that are in actual production and that for the preceding three years have met the applicable minimum gross income requirement. Amends the requirements for forestland to be designated as a special class of property to require one of the included tracts to be at least 10 acres (was, 20 acres) that are in actual production and are not included in a farm unit. Adds conditions under which land that the owner rents to another may qualify for classification under the statute. Effective for taxable years beginning on or after July 1, 2019.
Provides that with respect to industrial hemp cultivation licenses, application with no drug-related or controlled substance felony convictions in the prior 10 years are eligible for licensure. Requires the Industrial Hemp Commission to amend the Hemp Applicant Rule consistent with this provision.
States NCGA findings related to truffle production in the State. Appropriates $200,000 in nonrecurring funds for 2019-20 to the UNC Board of Governors to support research at the North Carolina Agricultural and Technical State University intended to decrease time to production and site analysis costs for truffle production.
Enacts new Article 55B, Truffle Cultivation Grants, in GS Chapter 106, providing as follows. Establishes the NC Truffle Cultivation Grant Fund (Grant Fund) in the Department of Agriculture and Consumer Services (DACS), with funds to be used to encourage the establishment of new truffle orchards in the state. Allows eligible farmers (who must be at least 18 and have completed specified truffle cultivation training) to apply for a grant of up to $10,000 from the Grant Fund for expenses associated with the cost of establishing a new truffle orchard. Requires a 1:1 match by the grant recipient.
Appropriates $300,000 in nonrecurring funds for 2019-20 to DACS to be credited to the Grant Fund. Requires DACS to coordinate with the research program at North Carolina Agriculture and Technical State University in effecting the purpose and goals of the grant program.