Amends GS 105­153.5(a) to raise the standard income tax deduction from $17,500 to $18,500 for married, filing jointly/surviving spouse taxpayers, from $14,000 to $14,800 for heads of household, and from $8,750 to $9,250 for single and married, filing separately taxpayers. Effective for taxable years beginning on or after January 1, 2018.

Repeals GS Chapter 105, Article 5F (Certain Machinery and Equipment), and GS 105­164.13(5a) (exempting equipment described in Article 5F from retail and sales tax), effective July 1, 2017.

Amends GS 105­164.4I(b) to delete the reference to the above­repealed Article 5F, effective July 1, 2017.

Amends GS 105­164.13 to enact new subsections (5e) through (5o) exempting the following transactions from retail sales and use taxes: (1) sales of mill machinery or mill machinery parts or accessories to manufacturing industry or plants, or described related contractors and subcontractors, (2) sales to a major recycling facility of cranes, structural steel crane support systems, and related foundations, port and dock facilities, rail equipment, and material handling equipment, (3) sales of equipment, or equipment attachments or repair parts to companies primarily engaged in research and development in the physical, engineering, and life sciences, or engaged in software publishing, or engaged in industrial machinery refurbishing activities, is capitalized by the company for tax purposes, and is used in the research and development or repair or refurbishment of tangible personal property, (4) sales to a company located at a port facility of machinery and equipment, or parts, accessories, or attachments for the equipment, used at the facility for waterborne commerce to unload or process bulk cargo to make it suitable for delivery to and use by manufacturing facilities, (5) sales of equipment, attachments, and repair parts for equipment that is sold to a person that gathers and obtain used metals and converts them into a new or different product for sale, capitalized by the person for tax purposes, used by the person in the conversion process, and are not a motor vehicle or attachment or repair part for a motor vehicle, (6) sales of equipment, attachments, or repair parts for that equipment to companies engaged in processing tangible personal property to extract precious metals to determine their value, capitalized by the company for tax purposes, and used by the company for that process, (7) sales of equipment, attachments, or repair parts for that equipment to companies engaged in the fabrication of metal work, with annual gross receipts of at least $8 million, capitalized by the company for tax purposes under the code, used by the company in the fabrication or manufacture of metal products or to create equipment for the fabrication or manufacture of metal products, (8) sales of equipment, accessories, attachments, or parts for that equipment, to large manufacturing and distribution facilities, that are used in the manufacturing, assembly, or distribution process, and are not electricity (subject to requirements for maintaining certain levels of employment and investment described in the amended definition of  large manufacturing and distribution facility), and (9) sales of parts for a ready-­mix concrete mill to a company that primarily sells ready­-mix concrete. Effective July 1, 2017.

Amends GS 105­164.3 to define large manufacturing and distribution facility, effective July 1, 2017.

Directs the Revenue Laws Study Committee to study ways in which to clarify the scope of the sales and use tax exemption for mill machinery, by modernizing and further defining the statutory language and by incorporating existing administrative interpretations of the Department of Revenue, to the extent the General Assembly desires to maintain those interpretations, and to report its findings to the 2018 Regular Session of the 2017 General Assembly.

Amends GS 105­120.2 (Franchise or privilege tax on holding companies). Currently provides for the tax to be the higher of the two rates described in GS 105­120.2(b)(1) and GS 105­120.2(b)(2). Eliminates the second rate, and applies the first rate ($1.50 per $1,000 of the amount determined under the statute, in no case more than $150,000 nor less than $200) to all corporations taxed under this statute. Makes conforming changes. Effective 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.

Amends GS 105­122 (Franchise or privilege tax on domestic and foreign corporations). Adjusts the tax rate to delete the text in subsection (d) referring to subsection (c1), and providing that the taxed net worth of a corporation doing business in this and other states is the portion of the net worth apportioned to this state. Deletes text providing for the appraised value of tangible property, and defining  total actual investment in tangible property . Effective 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.

Except as otherwise provided, effective when the act becomes law.