Sen. Lowe files bill in North Carolina Senate to create community tax credit program

A new bill filed by State Sen. Lowe seeks to boost philanthropic investments in North Carolina communities through a tax credit program supporting endowed funds, according to the North Carolina State Senate.

The bill, filed as SB 684 on March 25 during the 2025 regular session, was formally listed with the short title: ‘Put Money to Work in Communities Act.’

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

In essence, this bill, effective for taxable years beginning on or after Jan. 1, 2025, establishes a tax credit program aimed at boosting philanthropic investments in North Carolina communities. It provides a 25% tax credit to C corporations and individuals making a qualified endowment gift of at least $1,000 to the endowed funds of community foundations within the state. The maximum credit per taxpayer is $50,000 annually. The total credits for all taxpayers are capped at $12.5 million per year. Qualified community foundations must meet several criteria, including being tax-exempt under Section 501(c). Unused credits can be carried forward for five years. The initiative aims to enhance community development and capture generational wealth transfers, though it is set to sunset after the 2029 tax year. The Department of Revenue must report on the program’s economic impact, including the growth of endowed funds and community development benefits.

Of the three sponsors of this bill, Woodson Bradley proposed the most bills (60) during the 2025 regular session.

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.

Lowe graduated from Bishop College in 1985 with a BA and again from Drew University School of Theology with a DMIN.

Lowe, a Democrat, was elected to the North Carolina State Senate in 2015 to represent the state’s 32nd Senate district, replacing previous state senator Earline Parmon.