NC H885

Establishes a tax credit equal to 33% of donations made to certified community-based development organizations for both corporate and individual income taxes.

Eligible organizations must be North Carolina nonprofits that provide capital to underserved communities, engage in community development activities, or develop affordable housing.

Caps the total annual credit at $5,000,000, with individual taxpayer credits limited to the lesser of $5,000,000 or 25% of tax liability; unused credits may be carried forward.

Requires applications for the credit to be filed by October 15 of the donation year; prohibits donors from claiming the same donation as a charitable deduction.

Requires the Department of Revenue to certify qualifying organizations and report annually on taxpayer participation, funds contributed, affordable housing produced, jobs created, and General Fund costs; provision sunsets for taxable years beginning January 1, 2022.