Contains whereas clauses.  

Section 1.

Enacts Part 3B, termed the “Leading Investments in Families and Foster Teens (LIFT) Act” (Act) to Article 3 in GS Chapter 143B. as follows. Defines twelve terms, including eligible recipient (a high school participant, expectant or new mother participant, survivor of a natural disaster participant, or young adult exiting foster care participant, who meets the criteria to receive Program income payments). Establishes, in GS 143B-146.32, the Leading Investments in Families and Foster Teens Program (Program) within the Department of Health and Human Services (Department) to support eligible recipients with Program income payments (cash payments of equal amounts issued monthly to eligible recipients with the intention of stabilizing the eligible recipients' financial security and to protect from emergency expenditures) for limited periods of time in accordance with the Program, as specified. Provides for Program payments of $1,000 a month in accordance with the four listed schedules for high school students, young adults exiting foster care, expectant or new mothers, and survivors of natural disaster, respectively, from April 1, 2026, through to April 1, 2035. Establishes the LIFT Fund (Fund) in GS 143B-146.33 within the Department as a non-reverting interest-bearing account to receive appropriations, gifts, grants, federal funds, donations, and any other funds to support the Program. Directs the Department to administer the Fund. Specifies that monies in the Fund are appropriated for the purposes in the act and cannot be diverted for other purposes. Requires the Department to coordinate with the listed agencies to distribute Program funds to respective eligible Program recipients in GS 143B-146.34. Provides, in GS 143B-146.35, that Program income payments are not (1) considered taxable income for the purposes of State income taxes, (2) considered in calculating any State tax credits, (3) used to offset any liabilities owed by an eligible recipient, and (4) affect income eligibility of the eligible recipient or the household of the eligible recipient for any public assistance, benefits, or programs administered or funded by the State. Provides for rules in the event of a conflict between the State tax provisions and federal program aid. Authorizes the Department to adopt rules to implement the act.

Specifies that GS 143B-146.35, as enacted by the act, is effective for taxes imposed for taxable years beginning on or after January 1, 2026. The remainder of this section is effective July 1, 2025.

Section 2.

Of the funds received by the State and appropriated to the Department from the Temporary Assistance for Needy Families (TANF) Block Grant, directs the Department to allocate to the Division of Social Services (Division) the recurring sum of $161.6 million for each year of the 2025-2027 fiscal biennium to implement the Healthy Start NC Program (Program). Additionally appropriates from the General Fund to the Department $146.3 million for each year of the 2025-2027 fiscal biennium to be allocated to the Division for implementation of the Program to provide nonrecurrent, short-term benefits in the form of prenatal and infant cash allowances to meet pre- and post-birth needs of expecting mothers and babies. Directs the Division to develop detailed guidelines to administer, and accomplish the purposes of, the Program, as described.  Provides for the following uses of Program funds: (1) a one-time award to an expecting mother during pregnancy in the amount of $1,500 and (2) a monthly award for the maximum amount of time permitted under federal law to qualify as nonrecurrent, short-term benefits, not to exceed the first year after giving birth to the mother in the amount $500. Provides for means testing in determining award recipients, as described. Effective July 1, 2025.

Effective for taxable years beginning on or after January 1, 2025, amends GS 105-130.3 (corporate income tax for C Corporations) to set a flat rate of 2.25 of the taxpayers’ State net income. Removes provisions that would gradually reduce a C corporation’s corporate income tax so that after 2029, the tax rate would be 0%.