Senate committee substitute to the 1st edition makes the following changes.  Makes conforming changes to act’s long and short titles.  Makes organizational changes.
Part I.
Removes provisions amending GS 105-153.5(b) and (c) which would have allowed a taxpayer to take certain deductions and make adjustments to income relating to S Corporation losses or deductions. Now expands the other adjustments allowed in determining State income tax under GS 105-153.5(c1) to authorize shareholders of an S corporation to: (1) deduct the aggregate amount of losses or deductions of an S Corporation pursuant to the provisions of GS 105-131.4 and (2) require that they add the aggregate amount of losses or deductions of an S Corporation included in the shareholder's adjusted gross income to the extent the losses or deductions exceed the shareholder's combined adjusted bases, determined in accordance with GS 105-131.3, in the stock and indebtedness of the S Corporation. Removes provisions of GS 105-153.3 that amended the definition of resident as it applies to individual income tax. Amends GS 105-163.6, concerning when an employer must file returns and pay withheld taxes, so that the employer has an additional business day (was, just day) to pay the withheld taxes for each day that is a legal holiday if the payment period falls during a legal holiday as described. Makes technical changes.  
Updates statutory cross references and makes a clarifying change in GS 105-130.34A, as amended by Section 9.1 of SL 2025-4. Removes payments of tax made by a pass through entity from those payments excluded from the taxes subject to the credit cap under GS 105-153.11, as amended (credit for certain real property donations). Updates statutory cross references. Expands the allowed other income tax deductions under GS 105-153.5(b) to include, for taxable year 2024, an amount of an eligible timber casualty loss, as described.
Amends Section 13.1 of SL 2024-51, as follows. Extends the sunset date for the described interest waivers for tax underpayments from May 1, 2025, to September 25, 2025. Makes conforming changes.
Part II.
Clarifies that the term indirect partner includes beneficiaries of the described nongrantor trust (was, just trust) in GS 105-154.2 (federal partnership adjustments) and that the term tiered partner includes a nongrantor trust, as described (was, just trust).  Makes organizational changes.  Requires an audited partnership to notify each of its tiered partners of the tiered partner's distributive share of the final federal partnership adjustment, as described, within six months of the final federal partnership adjustment. Replaces reference to “estate” with "nonresident grantor" in describing the total distributive shares of the final federal adjustment reported. Expands the methodology for total distributive shares of the final federal adjustment reported to resident direct partners, to include resident grantor trust direct partners. Clarifies that resident direct partners are individual direct partners. Removes provisions requiring tiered partners or their owners to make required reports and payments no later than 90 days after the time for filing, as described. Makes conforming changes.
Part IV.
Provides that renewable diesel means a motor fuel chemically equivalent to diesel fuel that is manufactured from organic feedstocks and meets the described American Society for Testing and Materials Specification (was, no reference to organic feedstocks). Removes purchasers of tax-paid motor fuel who introduce the respective tax-paid motor fuel into the terminal transfer system at a location other than an IRS-registered terminal as a type of supplier under GS 105-449.60(46). Amends the type of supplier who owns tax-paid motor vehicles fuel so that it applies when it enters the terminal system at a location other than approved terminal defined under federal regulation. Makes technical and conforming changes to GS 105-449.97.  Makes suppliers that own tax-paid motor fuel as it enters the terminal transfer system at a location other than an approved terminal subject to a $2 million bond as part of their application for licensure as such a supplier under GS 105-449.72 (bond or letter of credit required as a condition of specified licenses).  Allows the Secretary of State (Secretary) to cancel an exporter’s license if they determine that the exporter has ceased operations for one year in GS 105-449.69 (was, exporter failed to comply with the provisions of GS 105-449.75 and stopped operating).
Expands the definition smokeless tobacco to include snuff in GS 105-113.4.  Excludes other smokeless tobacco from the excise tax on snuff under GS 105-113.36A. Effective July 1, 2025, and applies to sales or purchases occurring on or after that date.
Part V.
Requires licensed interactive sports wagering operators and the NC State Lottery Commission to provide the described information to the Secretary upon request in GS 105-251.2. Limits the Secretary's requests to once per month.
Part VI.
Specifies that a tax levied by a taxing unit which is then deemed by the governing body of the taxing unit, via resolution, to be an improperly collected fire tax is deemed an illegal tax for purposes of GS 105-381, limited to the properties or area indicated in the resolution as affected by the levy of said illegal tax and to the tax years indicated in the resolution in which the illegal tax was levied. Allows written requests for refunds of such taxes, as described. Expires July 1, 2026.
Enacts GS 105-274.1 allowing a taxing unit to assess tax imposed GS Chapter 105, Subchapter II (property taxes) on each property only once per tax year. Clarifies that nothing in the statute prevents a taxing unit from correcting an abstract.
Part VII.
Makes clarifying change to the definition of peer-to-peer vehicle sharing provider in GS 105-187.1. Changes the term peer-to-peer vehicle sharing so that it only applies to shared vehicles for financial compensation in GS 20-280.15. Clarifies that peer-to-peer vehicle sharing programs are commercial business platforms (currently, just business platform). Makes conforming changes to the definition of shared vehicle. Expands the definition of shared vehicle owner to include a person or entity designated by the registered owner who has not made the described election. Removes term peer-to-peer vehicle sharing provider.
Part VIII.
Makes a technical change to GS 105-114.1 (definitions governing LLC’s). Sets a minimum franchise or privilege tax of $200 for C Corporations for the first $1 million under GS 105-122. Makes organizational, clarifying, and technical changes. Incorporates the tax rate set forth in GS 105-122 into GS 105-120.2 (franchise or privilege tax on holding companies). Makes a technical change to GS 105-131.1 (taxation of S corporations). Adds deductions for any investments in an insurance company, as described, as an additional adjustment to a corporation’s net worth under GS 105-122(b) if the corporation owns, directly or indirectly, more than 80% of the outstanding voting stock, voting capital interests, or ownership interests in the insurance company. Effective retroactively for taxable years beginning on or after January 1, 2019, and applicable to the calculation of franchise tax reported on the 2018 and later corporate income tax returns
Part IX.
Replaces reference to the Secretary with the ALE Division and makes technical change to GS 14-313(fines and civil penalties relating to consumable and vapor products).  Amends GS 143B-245.10 by adding a definition of ALE Division. Amends GS 143B-245.15 by making the ALE Division responsible for the unannounced compliance checks of retailers, distributors, and wholesalers of consumable products or vapor products, instead of the Secretary of the Department of Revenue or his designees. Makes conforming changes and requires the ALE Division to report on violations to the Secretary when civil penalties are authorized, and allows any products identified for sale that are not on the registry to be seized, forfeited, and destroyed. Amend GS 143B-245.16 by no longer allowing the fees under Part 3 (Certification and Directory of Vapor Products and Consumable Products) to be used for enforcement and requires all fees under the part to be remitted to the Civil Penalty and Forfeiture Fund. Makes conforming changes to reporting requirements. Amends GS 143B-218 to add to the Department of Revenue's duties performing other non-tax related functions as enacted by the NCGA. Amends GS 143B-219 by making conforming changes. Removes the functions of the State Board of Assessment from those that are transferred to the Department of Revenue.
Part X.
Amends GS 1-339.1 by amending the provision providing that a judicial sale is a sale of property made under an order in an action or proceeding in the superior or district court, but not a tax foreclosure sale, specifying that for the purposes of federal law, this should not be construed to mean that a tax foreclosure sale is a non-judicial sale. Amends GS 160A-233 and GS 153A-200 by no longer making the lien of special assessments inferior to prior and subsequent liens for federal taxes, effective October 1, 2025.

Statutes affected:
Filed: 105-153.5, 105-153.5A, 105-160.2, 105-153.3, 105-163.6, 105-228.90, 105-130.5, 105-241.6, 105-241.8, 105-164.8, 105-164.3, 105-187.90, 105-187.95, 105-113.39A, 105-113.83A, 105-449.42, 105-449.60, 105-449.97, 105-449.69, 105-449.76, 105-449.87, 105-449.139, 150B-2, 18C-901, 105-236, 105-249.2, 105-278.2, 105-187.1, 105-187.3, 105-187.4, 105-187.5, 153A-156, 160A-215.1, 105-550, 105-551, 105-552, 20-280.15, 20-280.17
Edition 1: 105-153.5, 105-153.5A, 105-160.2, 105-153.3, 105-163.6, 105-228.90, 105-130.5, 105-241.6, 105-241.8, 105-164.8, 105-164.3, 105-187.90, 105-187.95, 105-113.39A, 105-113.83A, 105-449.42, 105-449.60, 105-449.97, 105-449.69, 105-449.76, 105-449.87, 105-449.139, 150B-2, 18C-901, 105-236, 105-249.2, 105-278.2, 105-187.1, 105-187.3, 105-187.4, 105-187.5, 153A-156, 160A-215.1, 105-550, 105-551, 105-552, 20-280.15, 20-280.17
Edition 2: 105-153.5, 105-153.5A, 105-160.2, 105-163.6, 105-228.90, 105-130.5, 105-241.6, 105-241.8, 105-164.8, 105-164.3, 105-187.90, 105-187.95, 105-113.39A, 105-113.83A, 105-449.42, 105-449.60, 105-449.97, 105-449.72, 105-449.69, 105-449.76, 105-449.87, 105-449.139, 150B-2, 18C-901, 105-113.4, 105-113.36A, 105-236, 105-249.2, 105-251.2, 105-278.2, 105-187.1, 105-187.3, 105-187.4, 105-187.5, 153A-156, 160A-215.1, 105-550, 105-551, 105-552, 20-280.15, 105-114.1, 105-122, 105-120.2, 105-131.1, 14-313, 143B-245.10, 143B-245.15, 143B-245.16, 143B-218, 143B-219, 1-339.1, 160A-233, 153A-200