Bill > S351

This bill introduces several provisions to support young businesses in North Carolina. First, it allows corporations, S corporations, and certain business entities (like limited liability companies and partnerships) that have been in operation for less than five years and have a state net income below $5,000 to defer their full income tax payment to the next taxable year. Additionally, the bill encourages state agencies to use contractors that have been in business for less than five years, expanding upon existing policies that promote small, minority, physically handicapped, and women contractors. The Department of Administration is now required to collect and report detailed data on state contracts awarded to these young businesses, including the number of contracts, total dollar amount, and percentage of contracts compared to overall state contracting. The tax deferral provisions will take effect for taxable years beginning on or after January 1, 2026, while the contracting provisions will apply to contracts awarded on or after October 1, 2025. The overall aim of the bill is to support and provide financial flexibility for emerging businesses in North Carolina.

https://www.ncleg.gov/BillLookUp/2025/S351