AN ACT to provide for economic development incentives targeted for agricultural manufacturing in north carolina.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 143B‑437.71 reads as rewritten:

§ 143B‑437.71.  One North Carolina Fund established as a special revenue fund.

(a)        Establishment. – The One North Carolina Fund is established as a special revenue fund in the Department of Commerce.

(b)        Purposes. – Moneys in the One North Carolina Fund may only be allocated pursuant to this subsection. Moneys may be allocated to (i) local governments for use in connection with securing commitments for the recruitment, expansion, or retention of new and existing businesses and to businesses, (ii) the One North Carolina Small Business Account created pursuant to subsection (c) of this section in an amount not to exceed three million dollars ($3,000,000). ($3,000,000), and (iii) the Agricultural Investment Grant Account created pursuant to subsection (d) of this section in an amount not to exceed five million dollars ($5,000,000). Moneys in the One North Carolina Fund allocated to local governments shall be used for the following purposes only:

(1)        Installation or purchase of equipment.

(2)        Structural repairs, improvements, or renovations to existing buildings to be used for expansion.

(3)        Construction of or improvements to new or existing water, sewer, gas, or electric utility distribution lines or equipment for existing buildings.

(4)        Construction of or improvements to new or existing water, sewer, gas, or electric utility distribution lines or equipment for new or proposed buildings to be used for manufacturing and industrial operations.

(5)        Any other purposes specifically provided by an act of the General Assembly.

(b1)      Awards. – The amounts committed in Governor's Letters issued in a single fiscal year may not exceed seventeen million dollars ($17,000,000). Of the amount authorized in this subsection, three million dollars ($3,000,000) is reserved for agreements with local governments located in development tier three areas, as defined in G.S. 143B‑437.08, with total employment of 115,000 or less, using the data specified in G.S. 143B‑437.52(c)(3).

(c)        One North Carolina Small Business Account. – There is created in the One North Carolina Fund a special account, the One North Carolina Small Business Account, to be used for the North Carolina SBIR/STTR Incentive Program and the North Carolina SBIR/STTR Matching Funds Program, as specified in Part 2I of Article 10 of Chapter 143B of the General Statutes.

(d)       Agricultural Manufacturing Investment Grant Account. – There is created in the One North Carolina Fund a special account, the Agricultural Manufacturing Investment Grant Account (AMIG), to be used to provide competitive grants to eligible agricultural manufacturers. The Department shall administer the program and shall prioritize grants to recipients that the Department determines will have the greatest net economic benefit at the regional and State levels. In determining priority, the Department shall give preference to a project that satisfies one or more of the following: (i) it is sited entirely within a development tier one or two area, as defined in G.S. 143B‑437.08, (ii) it incorporates, in a significant amount, as determined by the Department, practices of precision agriculture, artificial‑intelligence‑driven automation, biotechnology, or a combination thereof, and (iii) in which research and development compensation is at least ten percent (10%) of the recipient's annual payroll expenses. Grants to a recipient under this subsection must comply with all of the following:

(1)        A grant to a recipient may not exceed one hundred thousand dollars ($100,000) in any single calendar year.

(2)        A grant to a recipient may not exceed five hundred thousand dollars ($500,000) total.

(3)        The grant term may not exceed five years.

(4)        The Department certifies that the recipient has invested or intends to invest at least five million dollars ($5,000,000) of private funds in improvements to real property and additions to tangible personal property in the project within a two‑year period beginning with the time the grant is awarded.

(5)        The recipient employs, and agrees to maintain for the entire grant term employment of, at least 25 full‑time employees or equivalent full‑time contract employees at the project that is the subject of the grant at the time the grant is awarded.

(6)        The recipient meets an average weekly wage that is at least equal to one hundred ten percent (110%) of the average wage for all insured private employers in the county.

(7)        The Department requires the recipient to enter into an agreement requiring that the recipient (i) meet performance criteria to protect the State's investment and ensure that the projected benefits of the project are secured, including employment level requirements, compensation requirements, investment amount and time line requirements, and other criteria the Department considers appropriate and (ii) repay or reimburse an appropriate portion of the grant based on the extent of any failure to meet the performance criteria.

SECTION 2.  This act becomes effective July 1, 2025.