Conference report makes the following changes to the 3rd edition.

Adds new Section 5.1-5.3, discussed below.

Section 5.1

Requires the Department of Environmental Quality (DEQ), pursuant to the powers relative to general permits and to permits for facilities not discharging to the surface waters of the State that are granted to the Environmental Management Commission (EMC) and delegated by the Commission to the Department, to extend the expiration of the seven specified general permits along with the certificates of coverage issued under those permits until September 30, 2026.

Section 5.2

Amends Section 40.7(a) of SL 2021-180  (2021 appropriations act) to allow DEQ to enter into a memorandum of understanding with another State agency for the purposes of implementing Section 40.7 (directing stream debris removal funds be used for the removal and disposal of waterway debris from waters of the State located in a targeted river basin or other flood mitigation strategies throughout the State prioritized through the Flood Resiliency Blueprint developed in the act). Makes clarifying changes.

Amends Section 40.7(e)(2) of SL 2021-180 to include the French Broad River Basin in the targeted river basins.

Allows DEQ to contract with one or more third parties for development and implementation of the Flood Resiliency Blueprint, and exempts it from Articles 3 and 3C of GS Chapter 143 with respect to those contracts.

Section 5.3

Amends GS 106-701 (right to farm defense in nuisance actions) by adding Type I compost facilities for the production of compost for commercial purposes to those meeting the definition of agricultural operation. 

Section 15

Amends GS 105-130.34 (credit for certain real property donations as follows). Sets the aggregate amount of credit allowed to a corporation for one or more qualified donations (made directly or indirectly) at $500,000. Specifies that the credit may not be taken for the year in which the donation is made but may be taken for the taxable year beginning during the calendar year in which the application for the credit becomes effective. Clarifies that a qualified donation must meet all of the listed conditions in GS 105-130.34(a1). Provides for an application for the credits provided with a filing deadline of April 15 of the following the calendar year when the donation was made. Provides for a form prepared by the Secretary. Requires the applicant provide a copy of the certificate by the Department of Natural and Cultural Resources identifying which of the valid public benefits the donation was suitable for.  Amends the self-contained appraisal report so that for fee simple donations of real property the corporation (was, taxpayer) may submit documentation of the county's appraised value of the donated property, as adjusted by the sales assessment ratio, in lieu of an appraisal report. (Prior version did not provide for sales adjustment ratio or for in lieu of appraisal report.) Requires donating corporations to maintain and make available for the Secretary any records the Secretary considers necessary to substantiate the amount of credit that the corporation is entitled to. Makes organizational, technical, and conforming changes.

Requires the Secretary of Revenue (Secretary) to calculate the total amount of credits claimed from applications. If the total amount of credits claimed for donations made in a calendar year exceeds this maximum amount, the Secretary will allow a portion of the credits claimed by allocating the maximum amount in credits in proportion to the size of the credit claimed by each taxpayer. Provides for notice of reduction of credit to taxpayer. Specifies that the Secretary’s allocations based on applications filed are final and shall not be adjusted to account for credits applied for but not claimed.

Provides for a total aggregate amount of all credits allowed to taxpayers under this section and GS 105-153.11 (credit for certain real property donations) for donations made in a taxable year to not exceed $5 million of which $3.25 million is reserved for credits to taxpayers that have made a qualified donation of real property for forestland or farmland conservation. If funds reserved for credits for qualified donations of real property for forestland or farmland conservation remain after disposition of all timely filed applications for that type of credit, requires the Secretary to allocate any funds remaining to credits for other types of qualified donations. Sets priority for those credits.  Provides for reopening of application period if the Secretary allows with deadline of October 15. The Secretary's determinations based on additional applications timely filed are final.

Amends GS 105-153.11 (credit for certain real property donations) as follows. Specifies that the credit may not be taken for the year in which the donation is made but may be taken for the taxable year beginning during the calendar year in which the application for the credit becomes effective. Clarifies that a qualified donation must meet all of the listed conditions in GS 105-153.11(a1). Provides for an application for the credits provided with a filing deadline of April 15 of the following the calendar year when the donation was made. Provides for a form prepared by the Secretary. Requires the applicant provide a copy of the certificate by the Department of Natural and Cultural Resources identifying which of the valid public benefits the donation was suitable for. Specified that a taxed pass-through entity (defined) that engages in an activity that makes it eligible for a credit under this section as an entity may not take the credit at the entity level but must pass through to each of its owners the owner's distributive share of the credit for which the taxed pass-through entity qualifies. Specifies that maximum dollar limits and other limitations that apply in determining the amount of credit available to an owner of a pass-through entity apply to the same extent in determining the amount of a credit for which the taxed pass-through entity qualifies. Requires the Secretary to calculate the total amount of credits claimed from applications. If the total amount of credits claimed for donations made in a calendar year exceeds this maximum amount, the Secretary will allow a portion of the credits claimed by allocating the maximum amount in credits in proportion to the size of the credit claimed by each individual or pass-through entity. Provides for notice of reduction of credit to individual/pass-through entities. Specifies that the Secretary’s allocations based on applications filed are final and shall not be adjusted to account for credits applied for but not claimed. Requires an individual or pass-through entity to maintain and make available for the Secretary any records the Secretary considers necessary to substantiate the amount of credit that the corporation is entitled to.  Makes organizational, technical, and conforming changes. Requires the Department of Revenue to include the following four prongs of information in the economic incentives report: (1) number of individuals and pass-through entities that took the credit allowed; (2) total amount of credits claimed for conservation purposes; (3) total amount of credits carried forward; and (4) total cost to the General Fund of the credits taken.

Amends the effective date so it also applies to donations made on or after January 1, 2025, and expires for taxable years beginning on or after January 1, 2027, for donations made on or after January 1, 2027.