NC S490

Excludes computer software and related documentation from North Carolina property tax, defined as any program or routine that causes a computer to perform specific tasks, including system and application programs and database management programs.

Maintains tax applicability for embedded software (microcode permanently residing in computer system internal memory) and purchased or licensed software from unrelated parties that is capitalized under generally accepted accounting principles.

Clarifies that custom software development and modifications to software—whether performed internally or by third parties to meet customer specifications—are excluded from the tax exemption for purchased/licensed software.

Effective for taxes imposed for taxable years beginning on or after July 1, 2014, with the remainder of the act effective upon enactment on July 10, 2013.

Declares the exclusion provisions non-severable; if any provision is found invalid, the entire software exclusion subdivision is repealed.