NC S351

Corporations, S Corporations, LLCs, and partnerships less than five years old with State net income under $5,000 may defer their full income tax payment to the following taxable year, effective for taxable years beginning on or after January 1, 2026.

State agencies are encouraged to use contractors that have been in operation for less than five years when awarding contracts for goods, services, construction projects, and information technology procurement.

The Department of Administration must compile and report data to the General Assembly on contracts awarded to contractors operating less than five years, including total number and dollar amounts, demographic and geographic breakdowns, and percentage comparisons to overall contract awards.

The contracting provisions apply to contracts awarded on or after October 1, 2025.