Sen. Barnes files bill in North Carolina Senate to provide tax deductions for banks

A new bill filed by State Sen. Barnes seeks to encourage financial institutions to support agriculture in rural North Carolina through tax incentives, according to the North Carolina State Senate.

The bill, filed as SB 478 on March 25 during the 2025 regular session, was formally listed with the short title: ‘Enhancing Ag. Opportunities in Rural NC.’

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

In essence, this bill provides an income tax deduction for banks on interest, fees, and penalties received from loans secured by agricultural land in North Carolina, as defined in G.S. 105-277.2. The initiative aims to encourage financial institutions to support agriculture in rural areas by offering tax incentives. This act will take effect for taxable years starting on or after Jan. 1, 2025.

Of the three sponsors of this bill, Buck Newton proposed the most bills (25) 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.

Barnes graduated from Peace College with an AA and again in 1988 from North Carolina State University with a BA.

Barnes, a Republican, was elected to the North Carolina State Senate in 2021 to represent the state’s 11th Senate district, replacing previous state senator Rick Horner.