Senate committee substitute to the 2nd edition makes the following changes. Makes organizational changes. Makes conforming changes, including to Part headings.

Part IA.

Now requires the State Controller to transfer all unencumbered (was, unexpended) funds remaining in Hurricane Florence Disaster Recovery Fund to the Savings Reserve in Section 2B.2 of SL 2025-2. Extends the deadlines and the limits for extension of deadlines by the Department of Agriculture and Consumer Services (DACS) for the Agricultural Crop Loss Program under Section 2D.2 of SL 2025-2 from 45 days to 60 days.  Authorizes local government units that received loans under Section 1.5 of SL 2018-138 or Section 1.2 of SL 2019-250 for cashflow management assistance while awaiting federal reimbursement to apply to the Department of Public Safety (DPS)’s Office of Recovery and Resiliency (ORR) for loan forgiveness, as described, so long as three listed conditions are met, including that FEMA denied the local government’s request for reimbursement (either in whole or in part) and any appeals or active arbitrations pertaining to that process have concluded.  

Part II.

Now requires the Office of the State Fire Marshal (OSFM) to develop and maintain, with the assistance of the NC Collaboratory (NCC), an online reporting portal for the described fire departments (was, OSFM assisted NCC with the reporting portal) under GS 58-82B-10. Makes conforming changes to GS 116-255 and Section 8.10 of SL 2021-180. Authorizes NCC to use any unspent remainder the nonrecurring funds allocated to it under Section 8.18 of SL 2021-21(study on cyanobacterial algal bloom treatment) for other research projects related to the study, analysis, and improvement of surface water quality in the State, including research projects related to nutrient-impaired coastal waters.  

Part IV.

Now reallocates $3 million of the funds allocated to the City of Oxford for the Kerr Lake Regional Water project by Section 12.2(e)(136) of SL 2023-134 to the South Granville Water and Sewer Authority for one or more water or wastewater projects (was, the same purpose).

Transfers $4 million of the funds allocated by Section 12.2(e)(139) of SL 2023-134 to the Town of Pembroke to the Office of State Budget and Management (OSBM) to (1) the Stokesdale Fire District, Inc.; (2) Rockingham County; and (3) Alamance County Sheriff's Office in the specified amounts for the purposes described.

Instructs for funds provided to the City of Archdale, the City of Asheboro, the City of Randleman, Randolph County, and the City of Trinity (local governments) by Section 12.2(e) of SL 2023-134 to be transferred to OSBM to provide grants in the same amounts to the same local governments for water and wastewater projects.

Directs that funds allocated to the City of Claremont for the Lyle Creek Sewer Project by Section 12.2 of SL 2023-134 to instead be used for any regional wastewater infrastructure improvements.

Amends Section 11.11 of SL 2022-74, as amended, concerning a competitive grant program for the development of megasites for major manufacturing opportunities, including the aerospace, automotive, clean energy, food processing, semiconductor, and life science industries, as follows. Modifies the infrastructure purpose of the Megasite Readiness Program (Program) so that it can be used on infrastructure projects, not just those that are public, to meet the needs of prospective employers for megasites. Replaces reference to “electrical utility lines” with “electric infrastructure.”  Expands the type of nonprofits that are eligible to partner with local governments under the Program to include 501(c)(12) organizations (certain local benevolent ditch or irrigation companies, telephone companies, or other like organizations). Directs for funds be transferred quarterly in equal installments from the North Carolina Megasite Fund to the Economic Development Partnership of North Carolina (EDPNC) Makes conforming changes.

Amends Section 11.12 of SL 2023-134, concerning the Selectsite Readiness Program, as follows. Now specifies that the appropriated $10 million for 2024-25 should also be used for assisting local governments or partnerships of local governments to: (1) acquire newly identified or existing selectsites; (2) analyze, plan, install, or upgrade the specified infrastructure as modified by the act (was, public infrastructure), including electric infrastructure (was, electrical utility lines) necessary to meet the needs of prospective employers for selectsites; and (3) fund the specified on-site preparations. Amends the purpose of the grant program to include identifying and evaluating up to 20 (was, 15) selectsites of less than 1,000 acres for preferred development and marketing; and includes supporting local governments or a partnership of local governments to analyze, plan, install, or upgrade infrastructure, no longer limiting this to public infrastructure. Allows EDPNC to use a similar selectsite process authorized by the General Assembly in authorizing funds for the above described purposes (was, just the process set forth in Section 11.11 of SL 2023-134). Directs for funds be transferred quarterly in equal installments from the North Carolina Selectsite Fund to EDPNC (was, funds “may” be disbursed, and no requirement it be quarterly). Makes conforming changes.

Part V.

Modifies the State Highway Patrol’s (SHP) authority to adopt rules under Section 5.1 of the act, concerning the transfer of the NC Center for Missing Persons to SHP, so that it is clear that its rulemaking authority only pertains to Section 5.1 (was, the act). Removes provisions (1) transferring personnel from DPS and the Department of Information Technology (DIT) to SHP and (2) transferring certain non-sworn personnel from the license and theft bureau of the Department of Transportation (DOT) to SHP. Raises the age that a parent may abandon their child pursuant to GS 14-322.2 from less than seven days old to less than 30 days old and not be prosecuted under GS 14-318.2 (misdemeanor child abuse).

Part VI.

Removes provisions assigning space in the Archdale Building to SHP.

Sets an expiration date of December 31, 2026, for the NC State Bar Grievance Review Committee (GRC) established under Section 27.11 of SL 2023-134 (was, expiration upon submission of its required report). Removes provisions requiring the GRC to submit a report to the specified NCGA committee by April 1, 2024.

Part VII.

Specifies that the grant funds provided to Appalachian State University under Section 40.8 of SL 2023-134, as amended by the act, for the addition and renovation project at Peacock Hall are a total project authorization increase of $2.5 of the previously authorized amount.

Further amends Section 40.17(a) of SL 2021-180, as amended, which amended grants and funds allocated from the State Capital and Infrastructure Fund in the 2021 Appropriations Act, by removing the requirement that the Department of Natural and Cultural Resources (DNCR) use funds appropriated to it to purchase land for the Charlotte Hawkins Brown State Historic Site in Guilford County (Site), so that is just allocated for purposes of the Site.

Appropriates from the funds available in the OSBM Flexibility Funds established in SL 2021-180 and described under project code FLEX21 to the UNC School of the Arts Foundation $4.5 million for 2025-26 to be used to purchase the described real property and improvements for a new loading dock. Effective July 1, 2025.

Expands the sources where the Wildlife Resources Commission can obtain matching state funds for the described project code under Section 40.1 of SL 2023-134 so that it can come from other available receipts, in addition to the WRC’s endowment.

Part IX.

Recodifies GS 105-130.34 to GS 105-130.34A (credit for certain real property donations-C Corporations).  Adds terms allocated credit, qualified real property interest (was, real property interest), and total allocated credits. Modifies terms nonprioritized credit request, maximum amount, qualified donation, and total requested credits. Clarifies that it is the taxpayer’s burden to prove eligibility and amount of the credit available under GS 105-130.34A (was, specified that the corporation had the burden). Modifies the cap on the allocated credit so that it cannot exceed the amount of the tax against which it’s claimed (was imposed by this Part) for the taxable year as reduced. Specifies that the allocated credit may only carryforward if it exceeds the statutory cap, as described. Prohibits an allowed credit from being transferred. Also requires the Department of Revenue (DOR) to include information on the total amount of qualified donations in its economic incentives report, in addition to four other listed matters. Makes technical, clarifying, organizational, and conforming changes. Makes conforming change to GS 105-130.9 to update statutory citation to GS 105-130.34A.

Amends GS 105-153.11 (credit for certain real property donations-individuals or pass-through entities), as follows. Specifies that a pass-through entity must pass through the credit to its owners using the process set forth in GS 105-153.11, not to exceed the limitations provided under the statute.  Adds terms allocated credit, pass-through entity, qualified real property interest (was, real property interest), and total allocated credits. Modifies terms maximum amount, nonprioritized credit request, qualified donation, prioritized credit request, and total requested credits. Clarifies that it is the taxpayer’s burden to prove eligibility and amount of the credit available under GS 105-153.11 (was, specified that the individual or pass-through entity had the burden). Changes the timeframe governing the limitations on the credit allowed under the statute for individuals and pass-through entities from a taxable year to a calendar year. Caps the allocated credit to couples where only one spouse is required to file a NC income tax return at not more than $250,000. Requires a pass-through entity to pass through to each of its owners the owner's distributive share of the credit for which the pass-through entity qualifies, not to exceed the amounts described in GS 105-153.11(f)(1)-(2). Authorizes the pass-through entity to allocate the credit only to an owner that was an owner of the pass-through entity as of the last day of the calendar year in which the credit was allocated. Modifies the cap on the allocated credit so that it cannot exceed the amount of the against which it’s claimed (was imposed by this Part) for the taxable year as reduced. Specifies that the allocated credit may only carryforward if it exceeds the statutory cap, as described. Prohibits an allowed credit from being transferred, except by will, bequeath, or other instrument of transfer that, requires upon the taxpayer's death, the unused allowable credit to be transferred to a designated beneficiary.  Also requires DOR to include information on the total amount of qualified donations in its economic incentives report, in addition to four other listed matters. Makes technical, clarifying, organizational, and conforming changes. Makes conforming change to GS 105-153.5 (deductions to individual adjusted gross income).