Renewable Energy Tax Credit
|Area of Interest||Renewable Energy|
This statute provides for a tax credit of 35 percent of the cost of the renewable energy property constructed, purchased, or leased. Renewable energy costs eligible under the tax credit include design, equipment, construction, and installation costs. Any other funding assistance received must be subtracted from the total cost. Additionally, none of the equipment related to the collecting, handling, storing, and transporting of biomass (i.e., manure) prior to its placement in the onsite biomass processing equipment is eligible. The tax credit cap for biomass applications is $2,500,000. The credit can be applied against either the livestock operation's income tax or its franchise tax. The tax credit may not exceed 50 percent of the taxpayer's tax liability for the year reduced by the sum of all other credits. Qualifying renewable-energy systems used for a non-business purpose must take the maximum credit amount allowable for the tax year in which the system is installed. The unused portion of the credit may be carried over for a maximum of five years as long as the system remains operating. If the system ceases to operate, the credit is void.
A system is not eligible for the tax credit until it is installed and fully functional. The renewable energy system must meet all applicable state and local codes.
|Eligible Organizations||Livestock Producer, Commercial/Industrial Business, Small Business|
|How to Apply||The allowable credit is calculated on Form NC-478G and the amount eligible to be claimed as a credit for the current year is carried to Form NC-478. Form NC-478 is used to determine if the credit is reduced because it exceeds the 50 percent of tax less other credits limitation and for corporations to elect whether the credit is to be claimed against franchise tax or income tax.|
|For More Information||http://www.dsireusa.org/documents/Incentives/NC19F.pdf|
|Primary Contact||Public Information
Department of Revenue
P.O. Box 25000
Raleigh, NC 27640