HB 74 — House Budget Technical Corrections.

Mathematics, and all temporary employees.

The Board of Governors of The University of North Carolina shall have the authority to establish positions under this subdivision to be exempt from this Chapter without further review or approval by any other State agency." SECTION 2.2.(b) This section becomes effective January 1, 2026.

PART III.

AGRICULTURE AND NATURAL AND ECONOMIC RESOURCES REALLOCATE[RESERVED] CITYPART OFV. OXFORD WATER INFRASTRUCTURE FUNDS SECTION 4.1.(a) Notwithstanding any provision of S.L.

2023-134JUSTICE orAND thePUBLIC CommitteeSAFETY Report[RESERVED] referencedPART inVI. Section 43.2 of that act to the contrary, three million dollars ($3,000,000) of the funds allocated to the City of Oxford for the Kerr Lake Regional Water project bySection 12.2(e)(136) of S.L.

2023-134GENERAL shallGOVERNMENT instead[RESERVED] bePART allocatedVII. to the South Granville Water and Sewer Authority for the same purpose.

PageSTATEWIDE 2[RESERVED] HousePART BillVIII. 74-Second Edition General Assembly Of North Carolina Session 2025 SECTION 4.1.(b) Notwithstanding any provision of S.L.

2023-134FINANCE or[RESERVED] the*H74-v-1* CommitteeGeneral ReportAssembly referencedOf inNorth SectionCarolina 43.2Session of2025 thatPART actIX. to the contrary, seven million dollars ($7,000,000) of the funds allocated to the City of Oxford for the Kerr Lake Regional Water projectbySection12.2(e)(136)ofS.L.2023-134shallbetransferredtotheOfficeofStateBudget and Management to provide grants to the following local governments and purposes:

(1)EFFECTIVE ThreeDATE millionSECTION dollars9.1. ($3,000,000) to Franklin County for an infrastructure project.

(2) One million dollars ($1,000,000) to Catawba County for a wastewater infrastructure project.

(3) Three million dollars ($3,000,000) to Hertford County for a water or wastewater infrastructure project.

REVISE MEGASITES READINESS PROGRAM SECTION 4.2.

Section 11.11 of S.L.

2022-74, as amended by Section 11.11 of S.L.

2023-134, reads as rewritten:

"SECTION 11.11.(a) Purpose.

– It is in the best economic and developmental interests of the State to support the development of megasites to ensure the State's ongoing competitiveness for major manufacturing opportunities, including, but not limited to, the aerospace, automotive, clean energy, food processing, semiconductor, and life science industries.

The purpose of this section is to establish a competitive grant program serving to do the following:

(1) Identify and evaluate up to seven megasites for preferred development and marketing.

(2) Assist local governments or a partnership of local governments in the acquisition of a newly identified or existing megasite.

(3) Support local governments or a partnership of local governments to analyze, plan, install, or upgrade public infrastructure, including publiclyowned water, gas, and sewer systems, transportation infrastructure, and the electrical utility lines necessary to meet the needs of prospective employers for megasites.

(4) Support local governments or a partnership of local governments to fund on-site preparation, including clearing, grading, or other related expenses for megasites.

(4a) Support local governments or a partnership of local governments in conducting due diligence, including, but not limited to, the following:

site characteristics, preliminary engineering reports for water and wastewater provision to the site, assessments related to road and highway infrastructure to serve the site, and other assessments as needed.

(5) Facilitate coordination between the economic development entities, the North Carolina Department of Environmental Quality, and the North Carolina Department of Transportation to expedite needs related to timely site development.

… "SECTION 11.11.(d) Allocation.

– EDPNC shall allocate monies in the Fund on the following basis:

… (2) All other funds appropriated to the Fund for local government grants for the acquisition of megasites determined pursuant to subdivision (1) of this subsection.

purposes described in subsection (a) of this section.

A grant for the acquisition of a megasite is limited to eighty-five percent (85%) of the lesser of the property's purchase price or tax value.

The percentage actually provided in the grant shall be determined by EDPNC based on total development needs for the megasite, prior investment in the megasite by one House Bill 74-Second Edition Page 3 General Assembly Of North Carolina Session 2025 or more local governments, the ability of one or more local governments to invest in the megasite, and the ability and level of participation promised by the local government in exchange for a grant from the Fund.

Monies mayonly be granted for, and used to acquire, a megasite for which (i) one or more local governments have a binding option or offer to purchase and (ii) all basic due diligence must be complete, including, but not limited to, boundary surveys, title searches, State Historic Preservation Office reviews, and wetlands delineation.

…." PART V.

JUSTICE AND PUBLIC SAFETY TRANSFER NORTH CAROLINA CENTER FORMISSING PERSONS TO THE STATE HIGHWAY PATROL SECTION 5.1.(a) All functions, powers, duties, and obligations vested in the North Carolina Center for Missing Persons in the Department of Public Safetyare transferred to, vested in, and consolidated within the State Highway Patrol by a Type I transfer, as defined in G.S.

143A-6.

SECTION 5.1.(b) Article 17 of Chapter 143B of the General Statutes, as enacted by S.L.

2024-57, is amended by adding a new Part 4 to be entitled "North Carolina Center for Missing Persons." SECTION 5.1.(c) Subpart B of Part 5 of Article 13 of Chapter 143B of the General Statutes is recodified as Part 4 of Article 17 of Chapter 143B of the General Statutes, as enacted by S.L.

2024-57, as follows:

Former Citation Recodified Citation 143B-1010 143B-1760 143B-1011 143B-1761 143B-1012 143B-1762 143B-1013 143B-1763 143B-1014 143B-1764 143B-1015 143B-1765 143B-1016 143B-1766 143B-1017 143B-1767 143B-1018 143B-1768 143B-1019 143B-1769 143B-1020 143B-1770 143B-1021 143B-1771 143B-1022 143B-1772 143B-1023 143B-1773 SECTION 5.1.(d) Part 4 of Article 17 of Chapter 143B of the General Statutes, as recodified by subsection (c) of this section, reads as rewritten:

"Part 4.

North Carolina Center for Missing Persons.

"§ 143B-1760.

North Carolina Center for Missing Persons established.

There is established within the Department of Public Safety State Highway Patrol the North Carolina Center for Missing Persons, which shall be organized and staffed in accordance with applicable laws.

The purpose of the Center is to serve as a central repository for information regarding missing persons and missing children, with special emphasis on missing children.

The Center may utilize the Federal Bureau of Investigation/National Crime Information Center's missing person computerized file (hereinafter referred to as FBI/NCIC) through the use of the Police Information Network in the North Carolina Department of Justice.

… Page 4 House Bill 74-Second Edition General Assembly Of North Carolina Session 2025 "§ 143B-1762.

Control of the Center.

The Center is under the direction of the Secretary of the Department of Public Safety Commander of the State HighwayPatrol and may be organized and structured in a manner as the Secretary deems appropriate to ensure that the objectives of the Center are achieved.

The Secretary Commander may employ those Center personnel as the General Assembly may authorize and provide funding for.

"§ 143B-1763.

Secretary Commander to adopt rules.

The Secretary Commander of the State Highway Patrol shall adopt rules prescribing all of the following:

(1) Procedures for accepting and disseminating information maintained at the Center.

(2) The confidentiality of the data and information, including the missing person report, maintained by the Center.

(3) The proper disposition of all obsolete data, including the missing person report;

provided, data for an individual who has reached the age of 18 and remains missing must be preserved.

(4) Procedures allowing a communication link with the Police Information Network and the FBI/NCIC's missing person file to ensure compliance with FBI/NCIC policies.

(5) Forms, including but not limited to a missing person report, considered necessary for the efficient and proper operation of the Center.

… "§ 143B-1765.

Dissemination of missing persons data by law-enforcement agencies.

… If the report involves a missing child and the report meets the criteria established in G.S.

143B-1021(b), G.S.

143B-1771(b), as soon as practicable after receipt of the report, the law enforcement agency shall notify the Center and the National Center for Missing and Exploited Children of the relevant data about the missing child.

… "§ 143B-1766.

Responsibilities of Center.

The Center shall do all of the following:

… (9) Maintain a directory of existing public and private agencies, groups, and individuals that provide effective assistance to families in the areas of prevention of child abduction, location of missing children and missing persons, and follow-up services to the child or person and family, as determined by the Secretary of Public Safety.Commander of the State Highway Patrol.

… (13) Perform such other activities that the Secretary of Public Safety Commander of the State Highway Patrol considers necessary to carry out the intent of its mandate.

… "§ 143B-1768.

Release of information by Center.

The following may make inquiries of, and receive data or information from, the Center:

… (4) Any person engaged in bona fide research when approved by the Secretary;

Commander of the State Highway Patrol;

provided, no names or addresses may be supplied to this person.

House Bill 74-Second Edition Page 5 General Assembly Of North Carolina Session 2025 (5) Any other person authorized by the Secretary of the Department of Public Safety Commander of the State Highway Patrol pursuant to G.S.

143B-1013.G.S.

143B-1763.

"§ 143B-1769.

Provision of toll-free service;

instructions to callers;

communication with law-enforcement agencies.

The Center shall provide a toll-free telephone line for anyone to report the disappearance of any individual or the sighting of any missing child or missing person.

The Center personnel shall instruct the caller, in the case of a report concerning the disappearance of an individual, of the requirements contained in G.S.

143B-1014 G.S.

143B-1764 of first having to submit a missing person report on the individual to the law-enforcement agency having jurisdiction of the area in which the individual became or is believed to have become missing.

Any law-enforcement agency may retrieve information imparted to the Center by means of this phone line.

The Center shall directly communicate any report of a sighting of a missing person or a missing child to the law-enforcement agency having jurisdiction in the area of disappearance or sighting.

"§ 143B-1770.

Improper release of information;

penalty.

Any person working under the supervision of the Director of Victims and Justice Services who knowingly and willfully releases, or authorizes the release of, any data, information, or records maintained or possessed by the Center to any agency, entity, or person other than as specifically permitted by Subpart B this Part or in violation of any rule adopted by the Secretary Commander of the State Highway Patrol is guilty of a Class 2 misdemeanor.

"§ 143B-1771.

North Carolina AMBER Alert System established.

(a) There is established within the North Carolina Center for Missing Persons the AMBER Alert System.

The purpose of AMBER Alert is to provide a statewide system for the rapid dissemination of information regarding abducted children.

(b) The AMBER Alert System shall make every effort to disseminate information on missing children as quickly as possible when all of the following criteria are met:

(1) The child is 17 years of age or younger;younger.

(2) The If abduction is not known or suspected to be by a parent of the child, unless the child's life is must be suspected to be in imminent danger of serious injury or death;death.

(3) Thechildisbelieved:believed(i)tohavebeenabductedand(ii)tobeindanger of injury or death.

a.

To have been abducted, or b.

To be in danger of injury or death;

(4) The child is not a runaway or voluntarily missing;

andmissing.

(5) The abduction has been reported to and investigated by a law enforcement agency.

If the abduction of the child is known or suspected to be by a parent of the child, the Center, in its discretion, may disseminate information through the AMBER Alert System if the child is believed to be in danger of injury or death.

… (f) The Department of Public Safety, State Highway Patrol, on behalf of the Center, may accept grants, contributions, devises, and gifts, whichshall be kept in aseparatefund, whichshall be nonreverting, and shall be used to fund the operations of the Center and the AMBER Alert System.

"§ 143B-1772.

North Carolina Missing Endangered System Silver Alert established.

(a) ThereisestablishedwithintheNorthCarolinaCenterforMissingPersonsthe Missing Endangered System.

Silver Alert.

The purpose of the Missing Endangered System Silver Alert is to provide a statewide system for the rapid dissemination of information regarding a missing person or missing child aged 65 or older who is believed to be suffering from dementia, Alzheimer's disease, or a cognitive impairment that, in light of the person's or child's missing Page 6 House Bill 74-Second Edition General Assembly Of North Carolina Session 2025 status, requires the person or child to be protected from potential abuse or other physical harm, neglect, or exploitation.that causes an irreversible deterioration of intellectual faculties that makes them unable to meet their own needs or to seek help without assistance.

(b) If the Center or a law enforcement agency receives a request that involves a missing person or missing child as described in subsection (a) of this section, and at the time of receipt no more than 72 hours have passed since the person or child went missing, the Center or law enforcement agency shall issue an alert providing for rapid dissemination of information statewide regarding the missing person or missing child.

person.

The Center or law enforcement agency shall make every effort to disseminate the information as quickly as possible when the person's or child's status as missing has been reported to a law enforcement agency.agency, including procedures for the use of the Wireless Emergency Alert.

(c) The Center and all law enforcement agencies shall adopt guidelines and develop procedures for issuing an a 90-day alert for missing persons and missing children as described in subsection (a) of this section and shall provide education and training to encourage radio and television broadcasters to participate in the alert.

The guidelines and procedures shall ensure that specific health information about the missing person or missing child is not made public through the alert or otherwise.

(d) The Center and all law enforcement agencies shall consult with the Department of Transportation and develop a procedure for the use of overhead permanent changeable message signs to provide information on the missing person or missing child meeting the criteria of this section when information is available that would enable motorists to assist in the recovery of the missing person or missing child.

person.

The Center and the Department of Transportation shall develop guidelines for the content, length, and frequency of any message to be placed on an overhead permanent changeable message sign.

"§ 143B-1773.

North Carolina Blue Alert System established.

… (c) The Center shall adopt guidelines and develop procedures for the statewide implementation of the Blue Alert System and shall provide education and training to encourage radio and television broadcasters to participate in the alert.alert, including procedures for the use of the Emergency Alert System and the Wireless Emergency Alert.

… "§ 143B-1774.

North Carolina Missing Endangered Alert established.

(a) ThereisestablishedwithintheNorthCarolinaCenterforMissingPersonstheMissing Endangered Alert.

The purpose of the MissingEndangered Alert is to provide a statewide system for the rapid dissemination of information regarding a missing person, aged 64 or younger, or missing child who is believed to be suffering from dementia, Alzheimer's disease, or a cognitive impairment that causes an irreversible deterioration of intellectual faculties that makes them unable to meet their own needs or to seek help without assistance and that is not a risk to the general public.

(b) If the Center receives a request that involves a missing person or missing child as described in subsection (a) of this section, and at the time of receipt no more than 72 hours have passed since the person or child went missing, the Center shall issue an alert providing for rapid disseminationofinformationstatewideregardingthemissingpersonormissingchild.TheCenter shall make every effort to disseminate the information as quickly as possible when the person's or child's status as missing has been reported to a law enforcement agency, including procedures for the use of the Wireless Emergency Alert.

(c) The Center shall adopt guidelines and develop procedures for issuing a 90-day alert for missing persons and missing children as described in subsection (a) of this section and shall provide education and training to encourage radio and television broadcasters to participate in the alert.

The guidelines and procedures shall ensure that specific health information about the missing person or missing child is not made public through the alert or otherwise.

House Bill 74-Second Edition Page 7 General Assembly Of North Carolina Session 2025 (d) The Center shall consult with the Department of Transportation and develop a procedure for the use of overhead permanent changeable message signs to provide information on the missing person or missing child meeting the criteria of this section when information is available that would enable motorists to assist in the recovery of the missing person or missing child.

The Center and the Department of Transportation shall develop guidelines for the content, length, and frequency of any message to be placed on an overhead permanent changeable message sign.

"§ 143B-1775.

North Carolina Ashanti Alert established.

(a) Thereis established withintheNorth CarolinaCenterforMissingPersonstheAshanti Alert.

The purpose of the Ashanti Alert is to provide a statewide system for the rapid dissemination of information regarding a missing person over 18 years of age that is suspected to have been abducted and there is both abductor and vehicle information available.

(b) If the Center receives a request that involves a missing person as described in subsection (a) of this section, and at the time of receipt no more than 72 hours have passed since the person went missing, the Center shall issue an alert providing for rapid dissemination of information statewide regarding the missing person.

The Center shall make every effort to disseminate the information as quickly as possible when the person's status as missing has been reported to a law enforcement agency, including procedures for the use of the Emergency Alert System and the Wireless Emergency Alert.

(c) The Center shall adopt guidelines and develop procedures for issuing a 24-hour alert for missing persons as described in subsection (a) of this section and shall provide education and training to encourage radio and television broadcasters to participate in the alert.

(d) The Center shall consult with the Department of Transportation and develop a procedure for the use of overhead permanent changeable message signs to provide information on the missing person or missing child meeting the criteria of this section when information is available that would enable motorists to assist in the recovery of the missing person or missing child.

The Center and the Department of Transportation shall develop guidelines for the content, length, and frequency of any message to be placed on an overhead permanent changeable message sign.

"§ 143B-1776.

North Carolina Missing – Weather Alert established.

(a) ThereisestablishedwithintheNorthCarolinaCenterforMissingPersonstheMissing – Weather Alert.

The purpose of the Missing – Weather Alert is to provide a statewide system for the rapid dissemination of information regarding a missing person or child that is missing duringtimesofextremeheatorcoldandisnotinavehicle,orimmediatelyfollowingasignificant weather event.

(b) If the Center receives a request that involves a missing person as described in subsection (a) of this section, and at the time of receipt no more than 72 hours have passed since the person went missing, the Center shall issue an alert providing for rapid dissemination of information statewide regarding the missing person.

The Center shall make every effort to disseminate the information as quickly as possible, including procedures for the use of the Wireless Emergency Alert.

(c) The Center shall adopt guidelines and develop procedures for issuing a 30-day alert for missing persons as described in subsection (a) of this section and shall provide education and training to encourage radio and television broadcasters to participate in the alert." SECTION 5.1.(e) The State Highway Patrol shall adopt rules, or amendments to rules, consistent with the provisions of this act.

The State Highway Patrol may use the procedure set forth in G.S.

150B-21.1 to adopt or amend any rules as required under this section.

TRANSFER PERSONNEL FROM THE DEPARTMENT OF PUBLIC SAFETY AND THE DEPARTMENT OF INFORMATION TECHNOLOGY TO THE STATE HIGHWAY PATROL Page 8 House Bill 74-Second Edition General Assembly Of North Carolina Session 2025 SECTION 5.2.(a) The following positions, including the salaries, property, and other funds allocated for the positions, are transferred from the Department of Public Safety to the State Highway Patrol:

Position Position Number Engineering Director 60000986 User Support Tech I 60056437 Payroll Clerk V 60056477 Accountant 60056455 Accounting Technician 60056412 Accounting Technician 60000910 Services/Commodities Manager 60056501 SBI Procurement Specialist III 60056404 Workers Compensation Program Assistant 60089565 Employee Relations Consultant 60056301 Manager Salary Administration and Employee Records 60056266 Class and Compensation Consultant Lead 60001077 HR Benefits Manager 60056274 Disability/Retirement Case Specialist 60056291 Salary Administration Consultant 60056275 Communications/Public Records Assistant 60076657 Digital Media Specialist 65012539 Graphic Designer II 65015611 Photographer 60084644 Dep Director of Comms and Digital Media 60084504 Public Information Officer (Videographer) 65027787 Assistant General Counsel 65025204 SECTION 5.2.(b) The following positions, including the salaries, property, and other funds allocated for the positions, are transferred from the Department of Information Technology to the State Highway Patrol:

Position Position Number User Support Specialist 60093567 Network Engineer 60089745 Application Systems Specialist 60056201 User Support Analyst 65000712 User Support Analyst 60089766 User Support Analyst 60056165 TRANSFER CERTAIN NON-SWORN PERSONNEL FROM THE LICENSE AND THEFT BUREAU OF THE DEPARTMENT OF TRANSPORTATION TO THE STATE HIGHWAY PATROL SECTION 5.3.

The following positions, including the salaries, property, and other funds allocated for the positions, are transferred from the Department of Transportation, Division of Motor Vehicles License and Theft Bureau, to the State Highway Patrol:

Position Position Number Program Coordinator III 60030052 Administrative Specialist II 60030907 Administrative Specialist I 60031075 Program Analyst I 60031189 Program Analyst I 60031341 Administrative Specialist II 60029790 House Bill 74-Second Edition Page 9 General Assembly Of North Carolina Session 2025 Administrative Specialist I 60031033 Program Coordinator II 60030760 Program Coordinator II 60030921 Electronics Technician II 60030924 Administrative Specialist I 60030909 Program Coordinator III 60092620 Program Coordinator III 60030920 Program Coordinator III 60030933 Program Coordinator III 60090052 Program Supervisor I 60092613 Program Supervisor I 60092614 Program Coordinator III 60092615 Program Coordinator III 60092616 Program Coordinator III 60092617 Program Coordinator III 60092618 Program Coordinator III 60092619 Program Coordinator III 60030904 Program Coordinator III 60092622 Program Coordinator III 60092623 Program Coordinator III 60092625 Program Coordinator III 60092626 Program Coordinator III 60092627 Program Coordinator I 60029918 Program Supervisor I 60030890 Program Coordinator III 60030922 Program Coordinator I 60031074 Program Coordinator I 60031114 Program Coordinator I 60031142 Program Coordinator I 60031143 Administrative Specialist I 60030847 Program Coordinator III 60030894 Administrative Specialist I 60030899 Program Supervisor I 60030917 Administrative Specialist I 60030934 Administrative Specialist I 60031312 Program Coordinator III 65037940 Program Coordinator III 65037942 Program Supervisor I 65037786 Program Coordinator III 65037941 Program Supervisor I 60030929 Program Coordinator III 60030844 Program Coordinator I 60030893 Program Coordinator III 60030898 Program Coordinator III 60031077 Program Coordinator I 60031284 Program Coordinator I 60031320 Program Coordinator III 60030916 Program Coordinator III 60030905 Program Coordinator III 60092628 Program Coordinator III 60092629 Administrative Specialist I 60030937 Page 10 House Bill 74-Second Edition General Assembly Of North Carolina Session 2025 Administrative Specialist I 60030962 Administrative Specialist I 60029801 Administrative Specialist I 60031024 Administrative Specialist I 60030997 Administrative Specialist I 60031026 Administrative Specialist I 60030996 Administrative Specialist I 60031140 Administrative Specialist I 60030995 Administrative Specialist I 60031193 Program Coordinator III 60031112 Program Coordinator III 60031115 Administrative Specialist I 60031076 PART VI.

GENERAL GOVERNMENT VARIOUS DIRECTED GRANT REVISIONS SECTION 6.1.

Section 6.1(a) of S.L.

2024-1, as amended bySection 2E.1(a) of S.L.

2024-57, reads as rewritten:

"SECTION 6.1.(a) Notwithstanding any provision of S.L.

2023-134 or the Committee Report referenced in Section 43.2 of that act to the contrary, the following directed grants to be allocated by the Office of State Budget and Management – Special Appropriations for the 2023-2024 fiscal year are amended as follows:

… (2) The directed grant to the Banner American Legion Auxiliary Unit #109, Inc., in the sum of one hundred twenty-five thousand dollars ($125,000) in nonrecurring funds for the 2023-2024 fiscal year shall instead not be provided to Banner Post 109, Incorporated.Incorporated, but shall be provided to Banner American Legion Auxiliary Unit #109, Inc., as provided in S.L.

2023-134.

… (37) Budgeted receipts from the ARPA Temporary Savings Fund to provide additional funds to Wake Forest Institute for Regenerative Medicine in the sum of five million dollars ($5,000,000) in nonrecurring funds for each fiscal year of the 2023-2025 fiscal biennium shall instead not be provided to RegenMed Development Organization, a 501(c)3 organization.organization but shall be provided to Wake Forest Institute for Regenerative Medicine as provided in S.L.

2023-134.

… (48) The directed grant to Greater Rocky Mount Family Medical Center, Inc., in the sum of three hundred fifty thousand dollars ($350,000) in nonrecurring funds for the 2023-2024 fiscal year to expand dental and behavioral health services shall instead be provided to the Opportunities Industrialization Center, Incorporated, of Rocky Mount.

(49) The directed grant to Open Door Ministries of High Point Foundation, Inc., in the sum of five hundred thousand dollars ($500,000) in nonrecurringfunds for the 2023-2024 fiscal year shall instead be provided to Open Door Ministries of High Point, Inc.

(50) The directed grant to the Union County Schools in the sum of eight million dollars ($8,000,000) in nonrecurring funds for the 2023-2024 fiscal year for an athletic facility and related equipment shall not revert on June 30, 2026, but shall remain available until June 30, 2028.

House Bill 74-Second Edition Page 11 General Assembly Of North Carolina Session 2025 (51) The directed grant to the Gray's Creek Ruritan Club 516 in the sum of two hundred forty-five thousand dollars ($245,000) in nonrecurring funds for the 2023-2024 fiscal year to support its mission of community improvement shall not be provided to the Gray's Creek Ruritan Club 516 but instead shall be provided as follows:

a.

Sixty-five thousand dollars ($65,000) to the Kidsville News! Literacy and Education Foundation, Inc., for the Summer Reading, Literacy, and Education Program.

b.

One hundred eightythousand dollars ($180,000) to the North Carolina Human Trafficking Commission for the WORTH Court to support mental health and substance abuse services for human trafficking survivors in Cumberland County." UNDERINSURED MOTORIST INSURANCE AMENDMENT EFFECTIVE DATE TECHNICAL CORRECTION SECTION 6.2.

Section 8 of S.L.

2024-29 is amended by adding a new subsection to read:

"SECTION 8.(d) Subsection (a) of this section becomes effective July 1, 2025, and applies to policies issued or renewed on or after that date." ASSIGN SPACE IN THE ARCHDALE BUILDING TO THE STATE HIGHWAY PATROL SECTION 6.3.

The Department of Administration shall reassign the office space on the second and fourth floors of the Archdale Building located in Raleigh, North Carolina, to the State Highway Patrol.

All equipment, furnishings, and other fixtures located on the second and fourth floors of the Archdale Building as of the effective date of this section and owned by the State shall remain on the second and fourth floors of the Archdale Building for use by the State Highway Patrol.

Nothing in this section shall be construed as prohibiting the disposal, removal, or replacement of the equipment, furnishings, and other fixtures described in this section after the State Highway Patrol has moved into the space described in this section.

PART VII.

STATEWIDE SCIF GRANT CHANGES SECTION 7.1.(a) Section 40.8(a) of S.L.

2023-134, as enacted by Section 9.1(a) of S.L.

2024-1, is amended by adding a new subdivision to read:

"(4) The funding allocated to the City of Charlotte in the sum of seventeen million fivehundred thousanddollars($17,500,000) forthe2023-2024fiscal year and the sum of two million five hundred thousand dollars ($2,500,000) for the 2024-2025 fiscal year shall instead be used to provide grants to the following entities and purposes:

a.

Five million dollars ($5,000,000) to Appalachian State University to be used for the renovation project at Edwin Duncan Hall.

b.

One million five hundred thousand dollars ($1,500,000) to Appalachian State University to be used for the renovation project at Wey Hall.

c.

Two million five hundred thousand dollars ($2,500,000) to Appalachian State University to be used for the addition and renovation project at Peacock Hall.

d.

Four million one hundred thousand dollars ($4,100,000) to Wayne County for a capital project at Rosewood Middle School.

Page 12 House Bill 74-Second Edition General Assembly Of North Carolina Session 2025 e.

Two hundred fifty thousand dollars ($250,000) to The Hudson Volunteer Fire Department, Inc., to be used for capital improvements and equipment.

f.

Two million dollars ($2,000,000) to North Catawba Fire-Rescue Department, Inc., to be used for capital improvements and equipment.

g.

Three hundred twenty-five thousand dollars ($325,000) to Grace Chapel Volunteer Fire Department, Inc., to be used for capital improvements and equipment.

h.

Two million dollars ($2,000,000) to the City of Lenoir to be used for Harpers Avenue Area infrastructure improvements.

i.

One hundred ten thousand dollars ($110,000) to King's Creek Volunteer Fire Department, Inc., to be used for capital improvements and equipment.

j.

Two hundredthousanddollars($200,000)to The Gamewell Volunteer Fire Department, Inc., to be used for capital improvements and equipment.

k.

Two hundred seventy-five thousand dollars ($275,000) to Caldwell County to be used for a new ambulance.

l.

One hundred forty thousand dollars ($140,000) to Collettsville Volunteer Fire Department, Inc., to be used for capital improvements and equipment.

m.

Six hundred thousand dollars ($600,000) to Patterson Fire-Rescue Department, Inc., to be used for capital improvements and equipment.

n.

One million dollars ($1,000,000) to the Town of Hudson for downtown infrastructure improvements." SECTION 7.1.(b) Section 40.17(a) of S.L.

2021-180, as enacted by Section 9.1(d) of S.L.

2021-189 and amended by Section 18.1 of S.L.

2022-6, Section 16 of S.L.

2022-11, Section 40.2 of S.L.

2022-74, Section 40.5(n) of S.L.

2023-134, and Section 9.1(c) of S.L.

2024-1, is amended by adding a new subdivision to read:

"(82) The remaining amount of funding allocated to Clay County in the sum of two million dollars ($2,000,000) in nonrecurring funds for the 2021-2022 fiscal yearforanew911callcentermayalsobeusedfor capitalcosts and equipment associated with the construction of a farmers market." PART VIII.

TRANSPORTATION BRIDGE NAMING CLARIFICATION SECTION 8.1.

Section 41.7 of S.L.

2023-134 reads as rewritten:

"SECTION 41.7.

Notwithstanding any provision of law to the contrary, the Department of Transportation shall designate as follows:

… (3) The bridge on U.S.

Highway 74 that crosses over the Catawba River at the Mecklenburg County and Gaston County line and is numbered 350091 by the Department as the "Representative Dana Bumgardner Bridge." …." PART IX.

FINANCE INCENTIVIZE FARMLAND PRESERVATION, FISH AND WILDLIFE CONSERVATION, AND MILITARY BUFFERS House Bill 74-Second Edition Page 13 General Assembly Of North Carolina Session 2025 SECTION 9.1.(a) G.S.

105-130.34, as enacted by Section 15 of S.L.

2024-32, reads as rewritten:

"§ 105-130.34.

Credit for certain real property donations.

(a) Credit.

Credit;

Ceiling.

– Subject to the limitations in this section, a C Corporation that makes a qualified donation of real propertylocated in North Carolina during the taxable year that is useful (i) for forestland or farmland preservation, (ii) for fish and wildlife conservation, (iii) as a buffer to limit land use activities that would restrict, impede, or interfere with military training, testing, or operations on a military installation or training area or otherwise be incompatible with the mission of the installation, (iv) for floodplain protection in a county that, in the five years preceding the donation, was the subject of a Type II or Type III gubernatorial disaster declaration, as provided in G.S.

166A-19.21, as a result of a natural disaster, (v) for historic landscape conservation, or (vi) for public trails or access to public trails is allowed a credit against the tax imposed by this Part equal to twenty-five percent (25%) of the fair market value of the donated property.

qualified donation.

The aggregate amount of credit allowed to a corporation in a taxable year under this section for one or more qualified donations made during the taxable calendar year, whether made directly or indirectly as an owner of a pass-through entity, may not exceed five hundred thousand dollars ($500,000).

The credit may not be taken for the year in which the qualified donation is made but may be taken for in the taxable year beginning during in the calendar year in which the application for the credit becomes effective as provided in subsection (a2) of this section.

(a1) Definitions.

– The following definitions apply in this section:

(1) Cap remainder.

– The amount that is the difference between the maximum amount and the amount of prioritized credit requests allowed.

(2) Maximum amount.

– The amount set out in subsection (e) of this section that is the total aggregate amount of all credits allowed to taxpayers under this section and G.S.

105-153.11 for qualified donations made in a calendar year.

(3) Nonprioritized credit request.

– A credit request under this section or G.S.

105-153.11 that is for a qualified donation other than a prioritized donation.

(4) Prioritized amount.

– The amount set out in subsection (e) of this section that is for prioritized credit requests.

(5) Prioritized credit request.

– A credit requested under this section or G.S.

105-153.11 that is for a qualified donation for forestland or farmland preservation.

(6) Qualified Donation.

donation.

– A qualified donation of real property is a donation of a real property interest located in North Carolina that meets all of the following conditions:

(1)a.

The real property It is donated in perpetuity for one of the qualifying following uses listed in subsection (a) of this section and is accepted in perpetuity for the qualifying use for which the qualified real property interest is donated.donated:

1.

Forestland or farmland preservation.

2.

Fish or wildlife conservation.

3.

A buffer to limit land use activities that would restrict, impede, or interfere with military training, testing, or operations on a military installation or training area or otherwise be incompatible with the mission of the installation.

4.

Floodplain protection in a county that, in the five years preceding the donation, was the subject of a Type II or Type III gubernatorial disaster declaration, as provided in G.S.

166A-19.21, as a result of a natural disaster.

Page 14 House Bill 74-Second Edition General Assembly Of North Carolina Session 2025 5.

Historic landscape conservation.

6.

Public trails or access to public trails.

(2)b.

The person to whom the property It is donated must be to the State, a local government, or a body that is both organized to receive and administer lands for conservation purposes and qualified to receive charitable contributions pursuant to G.S.

105-130.9.

Lands required to be dedicated pursuant to local governmental regulation or ordinance and dedications made to increase building density levels permitted under a regulation or ordinance are not eligible for this credit.

(7) Real propertyinterest.

– Aqualified real propertyinterest as defined in section 170(h)(2) of the Code.

(8) Total requested credits.

– All credits applied for under this section and under G.S.

105-153.11 for all qualified donations made in a calendar year from timely filed applications.

(a2) Application.

– To claim the credit provided in this section, a corporation must file an application with the Secretary for the credit.

The application must be filed on or before April 15 of the year following the calendar year in which the donation was made.

An application is effective for the year in which it is timely filed.

The Secretary may not accept late applications under this subsection.

The application must be on a form prescribed by the Secretary and include anyinformation required bythe Secretarydemonstrating that the donation has met the conditions for qualifying to qualify for the credit, including the following items:

(1) A copy of the certification by the Department of Natural and Cultural Resources that identifies identifying which of the valid public benefits listed in subsection (a) subdivision (6) of subsection (a1) of this section for which the donated real property interest is suitable.

(2) A self-contained appraisal report or summary appraisal report as defined in Standards Rule 2-2 in the latest edition of the Uniform Standards of Professional Appraisal Practice as promulgated by the Appraisal Foundation for the donated property.

real property interest.

For fee simple absolute donations of real property, a corporation may submit documentation of the county's appraised value of the donated real property, as adjusted by the sales assessment ratio, in lieu of an appraisal report.

(a3) Substantiation.

–Acorporationclaiminga credit underthis section must maintain and make available for inspection by the Secretary any records the Secretary considers necessary to determine and verify the amount of the credit allowed to which the corporation is entitled.

corporation.

The burden of proving eligibility for the credit and the amount of the credit rests upon the corporation, and no credit may be allowed to a corporation that fails to maintain adequate records or to make them available for inspection.

(b) Limitation.

– The credit allowed by this section may not exceed the amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowed, except payments of tax made by or on behalf of the corporation.

(c) Carryforward.

– Anyunused portion of this the credit allowed maybe carried forward for the next succeeding five years.

(d) No Double Benefit.

– That portion of a qualifying A qualified donation that is the basis for a credit allowed under this section is not eligible for deduction as a charitable contribution under G.S.

105-130.9.

(e) Ceiling;

Use Aggregate Cap;

Allocation.

– The total aggregate maximum amount of all credits allowed to taxpayers under this section and G.S.

105-153.11 for qualified donations made in a taxable year may not exceed five million dollars ($5,000,000), of which three million two hundred fifty thousand dollars ($3,250,000) is reserved for credits to taxpayers that have made a qualified donation of real property for forestland or farmland conservation.

If funds House Bill 74-Second Edition Page 15 General Assembly Of North Carolina Session 2025 reserved for credits for qualified donations of real property for forestland or farmland conservation remain after disposition of all timely filed applications for that type of credit, the Secretary shall allocate any funds remaining to credits for other types of qualified donations under this section.

The Secretary shall, first, fully fund any prorated credits in accordance with subsection (f) of this section and, second, if funds remain after fully funding prorated credits, reopen the application period for credits under this section for which funds have become available.

If the Secretary reopens the application period and notwithstanding the application deadline in subsection (a2) of this section, the additional applications must be filed with the Secretary on or before October 15 of the year following the calendar year in which the donation was made.

The Secretary may not accept late additional applications permitted under this subsection.

The Secretary's determinations based on additional applications timely filed in accordance with this subsection are final.a prioritized amount.

If the total requested credits are equal to or less than the maximum amount, the Secretary shall allow the total requested credits.

If the total requested credits are greater than the maximum amount, the Secretary shall allocate the total requested credits in accordance with subsection (f) of this section.

(f) Reduction.

– The Secretary shall calculate the total amount of credits claimed from applications timely filed under subsection (a2) of this section.

If the total amount of requested credits claimed for donations made in a calendar year exceeds this exceed the maximum amount, the Secretary shall allow a portion of prorate the total requested credits claimed by allocating the maximum amount in credits in proportion to the size of the credit claimed by each taxpayer.

in accordance with this subsection.

If a requested credit claimed under this section is reduced as provided in this subsection, the Secretary shall notify the corporation of the amount of the reduction of the credit on or before December 31 of the year following the calendar year in which the qualified donation was made.

The Secretary's allocations based on applications filed under subsection (a2) of this section are final and shall not be adjusted to account for credits applied for requested but not claimed.reduced under this subsection.

The total requested credits shall be reduced as follows:

(1) If the total requested credits are (i) all prioritized credit requests or (ii) all nonprioritized credit requests, then the Secretary shall prorate the total requested credits based on the proportion of each requested credit to the total requested credits.

(2) If the total requested credits are (i) a combination of prioritized credit requests and nonprioritized credit requests and (ii) the amount of prioritized credit requests is equal to or less than the prioritized amount, the Secretary shall first allow the prioritized credit requests.

The Secretary shall then prorate the cap remainder based on the proportion of each of the remaining requested credits to the total requested credits less the prioritized amount.

(3) Ifthetotal amount ofrequestedcredits is (i)acombination ofprioritizedcredit requests and nonprioritized credit requests and (ii) the amount of prioritized credit requests is greater than the prioritized amount, the Secretary shall first prorate the prioritized credit requests based on the proportion of each prioritized credit request to the prioritized amount.

The Secretary shall then prorate the cap remainder, including the remainder of any prioritized credit requests, based on the proportion of each of the remaining requested credits to the total requested credits less the prioritized amount.

(g) Report.

– The Department must include in the economic incentives report required by G.S.

105-256 the following information:

(1) The number of C Corporations that took the credit allowed under this section.

(2) The total amount of credits claimed by conservation purpose.public benefit as listed in subdivision (6) of subsection (a1) of this section.

(3) The total amount of credits carried forward.

Page 16 House Bill 74-Second Edition General Assembly Of North Carolina Session 2025 (4) The total cost to the General Fund of the credits taken." SECTION 9.1.(b) G.S.

105-153.11, as enacted by Section 15 of S.L.

2024-32, reads as rewritten:

"§ 105-153.11.

Credit for certain real property donations.

(a) Credit.

– Subject to the limitations in this section, an individual or a pass-through entity that makes a qualified donation of real property located in North Carolina during the taxable year that is useful (i) for forestland or farmland preservation, (ii) for fish and wildlife conservation, (iii) as a buffer to limit land use activities that would restrict, impede, or interfere with militarytraining, testing, oroperations onamilitaryinstallationortrainingareaorotherwise be incompatible with the mission of the installation, (iv) for floodplain protection in a county that, in the five years preceding the donation, was the subject of a Type II or Type III gubernatorial disaster declaration, as provided in G.S.

166A-19.21, as a result of a natural disaster, (v) for historic landscape conservation, or (vi) for public trails or access to public trails is allowed a credit against the tax imposed by this Part equal to twenty-five percent (25%) of the fair market value of the donated property.

qualified donation.

The credit may not be taken for the year in which the qualified donation is made but may be taken for in the taxable year beginning during in the calendar year in which the application for the credit becomes effective as provided in subsection (a2) of this section.

(a1) Definitions.

– The following definitions apply in this section:

(1) Cap remainder.

– The amount that is the difference between the maximum amount and the amount of prioritized credit requests allowed.

(2) Maximum amount.

– The amount set out in subsection (g) of this section that is the total aggregate amount of all credits allowed to taxpayers under this section and G.S.

105-130.34 for qualified donations made in a calendar year.

(3) Nonprioritized credit request.

– A credit request under this section or G.S.

105-130.34 that is for a qualified donation other than a prioritized donation.

(4) Prioritized amount.

– The amount set out in subsection (g) of this section that is for prioritized credit requests.

(5) Prioritized credit request.

– A credit requested under this section or G.S.

105-130.34 that is for a qualified donation for forestland or farmland preservation.

(6) Qualified Donation.

donation.

– A qualified donation of real property is a donation of a real property interest located in North Carolina that meets all of the following conditions:

(1)a.

The property It is donated in perpetuity for one of the qualifying following uses listed in subsection (a) of this section and is accepted in perpetuity for the qualifying use for which the real property interest is donated.donated:

1.

Forestland or farmland preservation.

2.

Fish or wildlife conservation.

3.

A buffer to limit land use activities that would restrict, impede, or interfere with military training, testing, or operations on a military installation or training area or otherwise be incompatible with the mission of the installation.

4.

Floodplain protection in a county that, in the five years preceding the donation, was the subject of a Type II or Type III gubernatorial disaster declaration, as provided in G.S.

166A-19.21, as a result of a natural disaster.

5.

Historic landscape conservation.

6.

Public trails or access to public trails.

House Bill 74-Second Edition Page 17 General Assembly Of North Carolina Session 2025 (2)b.

The person to whom the property It is donated must be to the State, a local government, or a body that is both organized to receive and administer lands for conservation purposes and qualified to receive charitable contributions under the Code.

Lands required to be dedicated pursuant to local governmental regulation or ordinance and dedications made to increase building densitylevels permitted under a regulation or ordinance are not eligible for this credit.

(7) Real propertyinterest.

– Aqualified real propertyinterest as defined in section 170(h)(2) of the Code.

(8) Taxed pass-through entity.

– As defined in G.S.

105-153.3.

(9) Total requested credits.

– All credits applied for under this section and under G.S.

105-130.34 for all qualified donations made in a calendar year from timely filed applications.

(a2) Application.

– To claim a credit allowed under this section, an individual or a pass-through entity must file an application with the Secretary for the credit.

The application must be filed on or before April 15 of the year following the calendar year in which the donation was made.

An application is effective for the year in which it is timely filed.

The Secretary may not accept late applications under this subsection.

The application must be on a form prescribed by the Secretary and include any information required by the Secretary demonstrating that the donation has met the conditions for qualifying to qualify for the credit, including the following items:

(1) A copy of the certification by the Department of Natural and Cultural Resources that identifies identifying which of the valid public benefits listed in subsection (a) subdivision (6) of subsection (a1) of this section for which the donated real property interest is suitable.

The certification for a qualified donation made by a pass-through entity must be filed by the pass-through entity.

(2) A self-contained or summary appraisal report as defined in Standards Rule 2-2 in the latest edition of the Uniform Standards of Professional Appraisal PracticeaspromulgatedbytheAppraisal Foundationforthedonated property.

real property interest.

For fee simple absolute donations of real property, an individual or pass-through entity may submit documentation of the county's appraised value of the donated real property, as adjusted by the sales assessment ratio, in lieu of an appraisal report.

(a3) Substantiation.

– An individual or pass-through entity claiming a credit under this section must maintain and make available for inspection by the Secretary any records the Secretary considers necessary to determine and verify the amount of the credit allowed to which the taxpayer is entitled.

individual or the pass-through entity.

The burden of proving eligibility for the credit and the amount of the credit rests upon the individual or pass-through entity, and no credit may be allowed to an individual or pass-through entity that fails to maintain adequate records or to make them available for inspection.

(a4) Credit Ceiling for Individuals.

– The aggregate amount of credit allowed to an individual in a taxable year under this section for one or more qualified donations made during thetaxable year,donations, whethermadedirectlyorindirectlyas ownerof apass-throughentity, may not exceed two hundred fifty thousand dollars ($250,000).

In the case of property owned by a married couple, if both spouses are required to file North Carolina income tax returns, the credit allowed by this section may be claimed only if the spouses file a joint return.

The aggregate amount ofcredit allowed to amarried couple filing ajoint tax returnmaynot exceedfive hundred thousand dollars ($500,000).

If only one spouse is required to file a North Carolina income tax return, that spouse may claim the credit allowed by this section on a separate return.

Page 18 House Bill 74-Second Edition General Assembly Of North Carolina Session 2025 (a5) Credit Ceiling for Pass-Through Entity.

Entities.

– The aggregate amount of credit allowed to a pass-through entity in a taxable year under this section for one or more qualified donations made during the taxable year, donations, whether made directly or indirectly as owner of another pass-through entity, may not exceed five hundred thousand dollars ($500,000).

Each individual who is an owner of a pass-through entity is allowed as a credit an amount equal to the owner's allocated share of the credit to which the pass-through entity is eligible under this subsection, not to exceed two hundred fifty thousand dollars ($250,000).

Each corporation that isanownerofapass-throughentityisallowedasacreditanamountequalto theowner'sallocated share of the credit to which the pass-through entityis eligible under this subsection, not to exceed five hundred thousand dollars ($500,000).

If an owner's share of the pass-through entity's credit is limited due to the maximum allowable credit under this section for a taxable year, the pass-through entity and its owners may not reallocate the unused credit among the other owners.

(a6) Taxed Pass-Through Entity.

Entities.

– A taxed pass-through entity that engages in an activitythat makes it eligible for a credit under this section as an entitymaynot take the credit at the entity level but must pass through to each of its owners the owner's distributive share of the credit for which the taxed pass-through entity qualifies.

Maximum dollar limits and other limitations that applyin determining the amount of credit available to an owner of a pass-through entity apply to the same extent in determining the amount of a credit for which the taxed pass-through entity qualifies.

For purposes of this subsection, the term "taxed pass-through entity" is as defined in G.S.

105-153.3.

(b) Limitation.

– The credit allowed by this section may not exceed the amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowed, except payments of tax made by or on behalf of the taxpayer.individual or pass-through entity.

(c) Carryforward.

– Anyunused portion of this the credit allowed maybe carried forward for the next succeeding five years.

(d) No Double Benefit.

– That portion of a qualifying A qualified donation that is the basis for a credit allowed under this section is not eligible for deduction as a charitable contribution under G.S.

105-153.5(a)(2)a.

(e) Repealed by Session Law 2024-32, s.

15, effective for taxable years beginning on or after January 1, 2025.

(f) Repealed by Session Laws 2007-309, s.

2, effective for taxable years beginning on or after January 1, 2007.

(g) Ceiling;

Use Aggregate Cap;

Allocation.

– The total aggregate maximum amount of all tax credits allowed to taxpayers under this section and G.S.

105-130.4 G.S.

105-130.34 for qualified donations made in a taxable calendar year may not exceed five million dollars ($5,000,000), of which three million two hundred fifty thousand dollars ($3,250,000) is reserved for credits to taxpayers that have made a qualified donation of real property for forestland or farmland conservation.

If funds reserved for credits for qualified donations of real property for forestland or farmland conservation remain after disposition of all timely filed applications for that type of credit, the Secretary shall allocate any funds remaining to credits for other types of qualified donations under this section.

The Secretary shall, first, fully fund any prorated credits in accordance with subsection (f) of this section and, second, if funds remain after fully funding prorated credits, reopen the application period for credits under this section for which funds have become available.

If the Secretary reopens the application period and notwithstanding the application deadline in subsection (a2) of this section, the additional applications must be filed with the Secretary on or before October 15 of the year following the calendar year in which the donation was made.

The Secretary may not accept late additional applications permitted under this subsection.

The Secretary's determinations based on additional applications timely filed in accordance with this subsection are final.a prioritized amount.

If the total requested credits are equal to or less than the maximum amount, the Secretary shall allow the total requested credits.

House Bill 74-Second Edition Page 19 General Assembly Of North Carolina Session 2025 If the total requested credits are greater than the maximum amount, the Secretary shall allocate the total requested credits in accordance with subsection (h) of this section.

(h) Reduction.

– The Secretary of Revenue shall calculate the total amount of credits claimed from applications timely filed under subsection (a2) of this section.

If the total amount of requested credits claimed for donations made in a calendar year exceeds this exceed the maximum amount, the Secretary shall allow a portion of prorate the total requested credits claimed by allocating the maximum amount in tax credits in proportion to the size of the credit claimed by each individual or pass-through entity.

in accordance with this subsection.

If a requestedcreditclaimedunderthissectionisreducedasprovidedinthissubsection,theSecretary shall notify the individuals or pass-through entities of the amount of the reduction of the credit on or before December 31 of the year followingthe calendar year in which the qualified donation was made.

The Secretary's allocations based on applications filed under subsection (a2) of this section are final and shall not be adjusted to account for credits applied for requested but not claimed.reduced under this subsection.

The total requested credits shall be reduced as follows:

(1) If the total requested credits are (i) all prioritized credit requests or (ii) all nonprioritized credit requests, then the Secretary shall prorate the total requested credits based on the proportion of each requested credit to the total requested credits.

(2) If the total requested credits are (i) a combination of prioritized credit requests and nonprioritized credit requests and (ii) the amount of prioritized credit requests is equal to or less than the prioritized amount, the Secretary shall first allow the prioritized credit requests.

The Secretary shall then prorate the cap remainder based on the proportion of each of the remaining requested credits to the total requested credits less the prioritized amount.

(3) Ifthetotal amount ofrequestedcredits is (i)acombination ofprioritizedcredit requests and nonprioritized credit requests and (ii) the amount of prioritized credit requests is greater than the prioritized amount, the Secretary shall first prorate the prioritized credit requests based on the proportion of each prioritized credit request to the prioritized amount.

The Secretary shall then prorate the cap remainder, including the remainder of any prioritized credit requests, based on the proportion of each of the remaining requested credits to the total requested credits less the prioritized amount.

(i) Report.

– The Department must include in the economic incentives report required by G.S.

105-256 the following information:

(1) The number of individuals and pass-through entities that took the credit allowed under this section.