From the North Carolina Chamber of Commerce
The NC Chamber is pleased to see Chamber-backed policies included in the budget released by the N.C. Senate this week. We applaud the Senate for their focus on issues important to the statewide business community, as outlined in our 2025 legislative agenda.
Western North Carolina Recovery
The NC Chamber continues to advocate for long-term economic and business recovery resources and solutions for hurricane relief in North Carolina.
We appreciate the Senate’s steps to continue to support recovery efforts in Western North Carolina, reserving and reallocating significant funding for Hurricane Helene Recovery. The budget also appropriates funding to improve water and wastewater infrastructure in both Western North Carolina and across the state.
Tax
Franchise Tax
For years, the NC Chamber has advocated for the elimination of the franchise tax, a duplicative and burdensome levy that continues to hinder our state’s businesses.
We are encouraged to see movement in the Senate budget to phase out the franchise tax, reducing the franchise tax by capping the tax on the first $5 million of the tax base for C-corporations at $500 and for S-corporations at $200. Thank you to Senators Craven and McInnis for their leadership on improving the business tax climate in North Carolina.
Personal Income Tax
The Senate budget also includes steps to reduce the personal income tax rate, a measure that will be instrumental in boosting the state’s overall tax competitiveness and helping small businesses keep costs as low as possible.
Propel NC
The NC Chamber fully supports Propel NC, recognizing the funding model as a transformative initiative that will increase alignment between our state’s education systems and workforce needs. Propel NC prioritizes connecting students to high-demand, high-wage jobs and will target investment in programs tied to workforce demand.
The Senate budget provides recurring funding to implement the Propel NC funding model. The budget also directs the State Board of Community Colleges to increase the enrollment formula values for programs in health care, engineering and advanced manufacturing, trades and transportation, and information technology.
Child Care
North Carolina’s employers have identified child care as a critical factor in our state’s workforce challenges. Affordable, quality child care supports working parents on the job, allows businesses to recruit and retain talent, and helps North Carolina children develop skills for success in school and life.
We are pleased to see efforts to address child care reimbursement rates, an impactful opportunity for small business owners, the business community at-large, and our state’s workforce.
Economic Development
We are pleased to see a focus on building a robust economic development fund, a measure that will boost opportunity and economic prosperity across the state.
Agriculture
North Carolina poultry farmers and poultry processing facilities are a significant part of the state’s agricultural economy. The Senate budget includes important measures to address and protect North Carolinians and the state’s agriculture industry from avian flu.
“While the NC Chamber does not take a position on specific appropriations, North Carolina must continue to prioritize its competitive position,” said Gary J. Salamido, president and CEO of the NC Chamber. “A continued commitment to strategic investments in workforce, economic development, and people in communities across the state will ensure our state remains a top destination for business and opportunity.”
We appreciate the opportunity to advocate on behalf of North Carolina’s business community and are pleased with the policies our team has advanced so far this legislative session. The NC Chamber will continue its work until the session adjourns so stay tuned for updates!
