Creates new GS 105-153.11 (Angel investment tax credit), establishing a tax credit for angel investors who make investments in qualified businesses located in the state. Provides a nonrefundable income tax credit of 35% of a qualified investment that is 50% applicable in the year the investment is made and 50% applicable in future tax years. Defines qualified business as a registered business that (1) is either a corporation, limited liability company, or a general or limited partnership located and headquartered in NC at the time the investment was made and has maintained these headquarters for the entire time the qualified business benefitted from this tax credit, (2) was organized no more than five years before the qualified investment was made, (3) employs or fewer people in this State at the time it is registered as a qualified business, (4) has had in any complete fiscal year before registration gross income as determined in accordance with the Code $2 million or less on a consolidated basis, or (v) is primarily engaged in manufacturing, processing, warehousing, wholesaling, software development, information technology services, research and development, or a business providing services set forth in subsectors 621, 622, 12 and 623 of NAICS provided the business does not engage in listed activities. Establishes definitions for the section, including “angel investor” and “qualified investment.”

Provides for the allocation of the credit when the qualifying investment is made by a a pass-through entity. Outlines limitations on the credit allowed under the section, including a cap of $5 million in credits for all taxpayers in a calendar year and $100,000 per individual. Requires a qualified business to register with the Secretary of Revenue for purposes of the section, and requires the Secretary to report a list of the registered businesses to the Joint Legislative Commission on Governmental Operations by January 31 of each year. Establishes an application procedure, and requires the Department of Revenue to report the number of angel investor tax credit applications received and approved and the number of tax credits approved, by county, to the Joint Legislative Committee on Governmental Operations by March 31 of each year. 

Effective for taxable years beginning on or after January 1, 2023.