Reenacts GS 105-277.1D (Inventory property tax deferral) and make the following changes. Defines “incentive district” as areas approved by local governments for project development financing debt instruments under GS 159-103, and “qualified improvement” as improvements to real property other than remodeling or renovating that are constructed in incentive districts. Limits an incentive district to no more than 5% of the local government unit's total area. Designates as a special class of property, a qualified improvement: (1) constructed by a builder and owned by the builder or a business entity that the builder is a member of, (2) located in an incentive district, (3) used for a purpose under GS 159-103 (those for which a local government may issue project development financing debt instruments). Allows builders to defer the increase in property taxes due to a qualified improvement until a certificate of occupancy is issued for the improvement. 

Effective and applicable to taxes imposed for tax years beginning on or after July 1, 2025.