NC H755

Creates a direct sales tax exemption for qualifying nonprofit entities, replacing the current refund-based system under G.S. 105-164.14(b)

Eligible entities include nonprofit hospitals, 501(c)(3) organizations (excluding community improvement, public/societal benefit, and mutual benefit groups), volunteer fire departments, volunteer EMS squads, qualified retirement facilities, and university-affiliated nonprofits serving UNC institutions

Caps the annual state exemption at $31,700,000 per entity and the annual local exemption at $13,300,000 per entity for each fiscal year

Excludes certain purchases from the exemption including electricity, telecommunications, piped natural gas, video programming, prepaid meal plans, aviation fuel, and spirituous liquor

Effective October 1, 2025, requiring nonprofits to obtain a sales tax exemption number from the Department of Revenue, with a $250 penalty for misuse of exemption certificates