Bill > S695

This bill creates a new property tax incentive for developers called the "incentive district property tax exclusion" in North Carolina. Under this provision, developers can designate a specific area (up to 5% of a local government's total area) as an "incentive district" after receiving approval from the local governing body. Qualifying developments, which are new land improvements by builders (excluding renovations or remodeling), can receive a 90% property tax exclusion for up to ten years or until the property is sold, whichever occurs first. To be eligible, builders must apply for the exclusion through a specific application process, and the property cannot simultaneously receive other property tax relief benefits. The bill amends existing tax statutes to incorporate this new classification and ensure that properties can only receive this specific tax benefit or another existing tax relief option, but not both. The new tax provision will become effective for tax years beginning on or after July 1, 2026, giving local governments and developers time to understand and prepare for the new incentive program.

Budget and Finance, Government Affairs

https://www.ncleg.gov/BillLookUp/2025/S695