Senate committee substitute rewrites the 1st edition as follows.

Instead of re-enacting GS 105-277.1D (inventory property tax deferral), enacts GS 105-277.03, pertaining to incentive district property tax exclusions. Specifies that a qualified development (land and unoccupied improvement by a builder to the land, other than remodeling, renovating, rehabilitating, or refinishing existing structures or buildings): (1) located in an incentive district (defined) and (2) held for sale by a builder, is designated a special class of property as described, and is taxable as follows. Excludes 90% of the appraised value of property from taxation. Specifies that property receiving an exclusion under GS 105-277.1D may not receive property tax relief under GS 105-277.02 (reduced taxation valuation of certain real property held for sale). Ends the exclusion on the earlier of: (1) ten years from the time the property first received the property tax benefit or (2) the sale of the property. Requires the builder to first apply for the exclusion as described. Makes conforming changes to GS 105-277.02 and GS 105-282.1. Effective for taxable years beginning on or after July 1, 2026.