NC S586

Creates a 20% income tax credit for grocers that contract with local producers to purchase minimally processed fruits, vegetables, grains, eggs, dairy, and meat.

Defines eligible "local food and farm products" as those produced within 150 miles of the grocer's physical location and minimally processed (e.g., washed, whole cuts, cleaned, pasteurized).

Limits the definition of "grocer" to taxpayers with a fixed physical location in North Carolina that derives at least 50% of gross income from retail food sales, excluding food service and preparation businesses.

Makes the credit refundable if it exceeds the grocer's income tax liability, with excess amounts refunded by the Secretary.

Repeals the credit effective for taxable years beginning on or after January 1, 2020, and requires the Department of Revenue to report annually on credit usage and cost to the General Fund.