North Carolina Sen. McInnis brownfields property reuse and tax benefit bill passes House and Senate

Passed bill sponsored by State Sen. Tom McInnis aims to revise brownfields property reuse regulations and associated tax benefits in North Carolina, seeking to update fee collection and tax exclusion provisions, according to the North Carolina State Senate.

In the House, 49 Democrats and 60 Republicans voted in favor of the bill.

Meanwhile, in the Senate, 16 Democrats and 28 Republicans voted in favor of the bill.

Mcinnis filed the bill in the North Carolina Senate on March 24 during the 2025 regular session.

The legislation, known as SB 387, was passed on June 24 during the 2025 regular session.

According to the North Carolina General Assembly site, the bill’s official text was formally listed with the short title: “Brownfields Property Reuse Act Revisions.”

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill revises the Brownfields Property Reuse Act and the associated property tax benefit in North Carolina. It mandates the Department to collect initial and subsequent fees from prospective developers who submit applications or enter into brownfields agreements to cover all related activities, including negotiation, public engagement, and compliance monitoring. If the developer is noncompliant, additional fees may be imposed. Unpaid fees will accrue interest, and a lien may be placed on the developer’s property. For qualifying brownfields properties, the bill sets a decreasing tax exclusion over five years for improvements, starting at 90% in year one and reducing to 10% by year five. Section 1 takes effect Jan. 1, 2026, and Section 2 applies to taxes from July 1, 2025. The bill’s remaining provisions take effect upon enactment.

The bill was sponsored by Sen. Tom McInnis (Republican-21st District), Sen. Steve Jarvis (Republican-30th District), and Sen. Timothy D. Moffitt (Republican-48th District).

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Mclnnis, a Republican, was elected to the North Carolina State Senate in 2023 to represent the state’s 21st Senate district, replacing previous state senator Ben Clark.

Under North Carolina law, bills must receive three readings in each chamber. According to the UNC School of Government, once a bill “passes its constitutionally required second reading and moves to its constitutionally required third reading,” additional debate can occur, but the final stage is often treated as a formality. Unless a legislator requests a roll-call, the third reading may be approved by voice vote or unanimous consent without a separate recorded tally.