House Bill 544 would create a new North Carolina income tax credit for the rehabilitation of certain large, historic former corporate headquarters campuses. The credit would apply only when a taxpayer is already eligible for the federal rehabilitation credit under Section 47 of the Internal Revenue Code and has at least $10 million in qualified rehabilitation expenditures for a certified rehabilitation of an eligible corporate campus. The state credit would equal 40% of the qualified rehabilitation expenditures that qualify for the federal credit.
To qualify, the property must be in North Carolina and meet several conditions: it must be a certified historic structure or State-certified historic structure, have once served as a corporate headquarters, sit on at least 20 acres, be covered by a preservation agreement, be listed on the National Register of Historic Places and certified as a local landmark, and have been at least 80% vacant for at least two years before certification. The bill also allows phased projects, with credit claimed as each phase is placed in service, and applies to expenditures incurred on or after January 1, 2026.
Impact
The bill would amend G.S. 105-129.71 to add a new corporate campus rehabilitation credit to North Carolina’s tax code, creating a targeted incentive for large-scale historic redevelopment projects. It would affect taxpayers undertaking qualifying rehabilitation projects, especially developers or property owners working on former corporate campuses that are historic and substantially vacant. The measure would not broadly change property tax law or historic preservation law, but it would tie state tax benefits to federal rehabilitation-credit eligibility and to state and local historic designation requirements.
Sentiment
Based on the bill text alone, the measure appears supportive of redevelopment and preservation goals, with a policy emphasis on encouraging investment in large vacant historic properties. No committee transcripts or recorded votes were provided, so there is no documented debate or formal vote history to indicate broader legislative sentiment. The bill’s structure suggests a targeted economic-development and preservation incentive rather than a controversial statewide tax change.
Contention
The main points of potential contention are likely to be the narrowness and fiscal cost of the credit. Because the bill targets only properties meeting a long list of criteria, including a minimum $10 million rehabilitation threshold, 20-acre site size, historic designations, and 80% vacancy, some may view it as a highly specific incentive that could benefit only a small number of projects or taxpayers. Others may question the size of the 40% credit and its effect on state revenue, while supporters would likely argue that the credit helps convert underused historic campuses into productive uses and preserves significant properties.
An act to amend Section 17053.91 of, and to add and repeal Sections 17053.92 and 23692 of, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
Establishes the large projects historic rehabilitation tax credit and the "white elephant" housing historic rehabilitation projects tax credit program for qualified rehabilitation expenditures totaling fifty million dollars or more with respect to a certified historic structure that has been vacant, as determined by local code enforcement or other reasonable means, for at least ten of fifteen consecutive years preceding the date of the taxpayer's application for the rehabilitation credit.
Establishes the large projects historic rehabilitation tax credit and the "white elephant" housing historic rehabilitation projects tax credit program for qualified rehabilitation expenditures totaling fifty million dollars or more with respect to a certified historic structure that has been vacant, as determined by local code enforcement or other reasonable means, for at least ten of fifteen consecutive years preceding the date of the taxpayer's application for the rehabilitation credit.