AN ACT to allow an income tax deduction for income received from the sale of real property.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105‑153.5(b) reads as rewritten:

(b)      Other Deductions. – In calculating North Carolina taxable income, a taxpayer may deduct from the taxpayer's adjusted gross income any of the following items that are included in the taxpayer's adjusted gross income:

…

(17)      The amount received by a taxpayer from the sale of real property located in this State to a nonprofit organization, when such property has been owned by the taxpayer for at least two years prior to the sale, up to the maximum deduction amount listed in the table below based on the taxpayer's filing status:

Filing Status                                           Maximum Deduction Amount

Married, filing jointly/surviving spouse                  $50,000

Head of Household                                                   $35,000

Single                                                                       $25,000

Married, filing separately                                         $25,000.

SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2024.