NC S387

Expands eligibility for brownfields property tax exclusions by allowing improvements to qualify once the Department of Environmental Quality provides written confirmation of eligibility, rather than requiring a finalized brownfields agreement first

Maintains the existing 5-year partial tax exclusion schedule for qualifying improvements: 90% excluded in Year 1, 75% in Year 2, 50% in Year 3, 30% in Year 4, and 10% in Year 5

Allows subsequent qualifying improvements on the same property to receive their own separate 5-year exclusionary period

Replaces the mandatory two-installment fee payment structure with a flexible schedule determined by the Department, and requires documentation for any unanticipated cost recovery from developers or property owners

Creates a new fee for property owners out of compliance with Notice of Brownfields Property requirements, equal to documented State enforcement costs

Tax provisions effective for taxable years beginning on or after July 1, 2025; signed into law July 2, 2025