Reenacts Article F of GS Chapter 105, pertaining to research and development, and modifies it as follows. Changes the definition of related person to a person described in one of the relationships set forth in Section 267(b) or 707(b) of the IRS Code. Modifies GS 105-129.51 (taxpayer standards) as follows. Instructs that a taxpayer is eligible for a credit under the Article in a development tier two or three area only if the taxpayer satisfies a wage standard. Specifies that no wage standard is required if the activity occurs in a development tier one area. Sets the following criteria for the wage standard:

• Jobs that are located within an urban progress zone, a port enhancement zone, or an agrarian growth zone but not in a development tier one area satisfy the wage standard if they pay an average weekly wage that is at least equal to 90% of the lesser of the average wage for all insured private employers in the State and the average wage for all insured private employers in the county.
• All other jobs satisfy the wage standard if they pay an average weekly wage that is at least equal to the lesser of 110% of the average wage for all insured private employers in the State and 90% of the average wage for all insured private employers in the county.

Requires the Department of Commerce (DOC) to annual publish the wage standard for each county. Provides for a wage calculation. Directs that a taxpayer is only eligible for under the Article if: (1) they provide health insurance (as described) for all of the full-time jobs at the establishment with respect to which the credit is claimed when the taxpayer engages in the activity that qualifies for the credit; (2) the taxpayer certifies that, at the time the taxpayer claims the credit, there has not been a final determination unfavorable (defined) to the taxpayer with respect to an environmental disqualifying event; and (3) if the taxpayer certifies that, as of the time the taxpayer claims the credit, at the establishment with respect to which the credit is claimed, the taxpayer has no citations under the Occupational Safety and Health Act that have become a final order within the past three years for willful serious violations (defined) or for failing to abate serious violations. Directs that if a taxpayer ceases to provide health insurance for the jobs during a taxable year, the credit expires and the taxpayer may not take any remaining installment or carryforward of the credit. Provides for an annual report by the Secretary of the Department of Environmental Quality to DOC listing all of the environmental disqualifying events for which a final determination unfavorable to the taxpayer was made in the prior calendar year and shall provide the name of the taxpayer involved and the date that the disqualifying event occurred. Instructs that a taxpayer is not eligible for a credit allowed under the Article if, at the time the taxpayer claims the credit or an installment or carryforward of the credit, the taxpayer has received a notice of an overdue tax debt and that overdue tax debt has not been satisfied or otherwise resolved. Makes conforming changes.

Modifies the cap under GS 105-129.52 so that the credit cannot exceed 15% (was, 50%) of the amount of tax against which it is claimed for the taxable year, reduced by the sum of all other credits allowed against that tax, except tax payments made by or on behalf of the taxpayer. Allows a credit equal to 20% of the expenses for a taxpayer that has NC university research expenses for the taxable year.

Effective for taxable years beginning on or after January 1, 2025.