Bill > S478

This bill amends North Carolina's tax code to provide banks with an income tax deduction for interest, fees, and penalties collected from loans secured by agricultural land. Specifically, the bill adds a new provision to the state's existing tax regulations that allows banks to exclude income from certain agricultural loans when calculating their state income tax liability. The term "agricultural land" is defined in a separate statute (G.S. 105-277.2), which typically refers to land used primarily for farming or agricultural purposes. The tax deduction will become effective for taxable years starting on or after January 1, 2025, which means banks can begin claiming this tax benefit in the 2025 tax year. The goal of this legislation appears to be to provide financial incentives for banks to offer loans to agricultural businesses and landowners, potentially supporting the rural agricultural economy in North Carolina by making such loans more attractive for financial institutions.

https://www.ncleg.gov/BillLookUp/2025/S478