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Funding Resources

Funding Resources
NC Renewable Energy Tax Credit
Type of Incentive Tax
Eligible States NC
Eligible Technology Backpressure Turbine, Boiler, Combustion Turbine, Condensing Turbine, Extracting Turbine, Fuel Cell, Microturbine, Other, Reciprocating Engine, Heat Recovery Generator, Stirling Engine
Eligible Fuel Biogas, Biomass, LFG, Municipal Solid Waste, Other
Eligible Project Size All (MW)
Critical Information North Carolina offers a tax credit equal to 35% of the cost of eligible renewable energy property constructed, purchased or leased by a taxpayer and placed into service in North Carolina during the taxable year. The credit has been amended several times since its original inception. House Bill 512 of 2009 extended the eligibility to geothermal equipment, extended the expiration date to December 31, 2015, and allowed the credit to be taken against the Gross Premiums Tax. HB 1829 of 2010 further extended this credit to combined heat and power systems. The credit is subject to various ceilings depending on sector and the type of renewable-energy system. The following credit limits for various technologies and sectors apply:

*A maximum of $3,500 per dwelling unit for active solar space heating, combined active solar space and domestic water-heating systems, and passive solar space heating used for a non-business purpose;

*A maximum of $1,400 per installation for solar water-heating systems, including solar pool-heating systems used for a non-business purpose;
*A maximum of $8,400 for geothermal heat pumps and geothermal equipment that uses geothermal energy for water heating or active space heating or cooling used for a non-business purpose;

*A maximum of $10,500 per installation for photovoltaic systems (also known as PV systems or solar-electric systems), wind-energy systems, combined heat and power systems, or certain other renewable-energy systems used for a non-business purpose.

*A maximum of $2.5 million* per installation for all solar, wind, hydro, geothermal, combined heat and power (as defined by Section 48 of the U.S. Tax Code), and biomass applications** used for a business purpose***, including PV, daylighting, solar water-heating and space-heating technologies.

Start Date 1/1/2000
End Date 12/31/2015
Minimum Efficiency (%)

 

Additional Information Renewable energy equipment costs eligible for the tax credit include the cost of the equipment and associated design, construction costs and installation costs less any discounts, rebates, advertising, installation assistance credits, name referral allowances or other similar reductions.

Under North Carolina's tax code, the allowable credit may not exceed 50 percent of a taxpayer's liability for the year, reduced by the sum of all other credits. The credit is taken in five equal installments beginning with the year in which the property is placed in service. If the credit is not used entirely during these five years, the remaining amount may be carried over for the next five years. The credit can be taken against franchise tax, income tax or, if the taxpayer is an insurance company, against the gross premiums tax.
Web Site http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NC19F&re=1&ee=1Exit EPA
Additional Web Site http://www.dornc.com/Exit EPA
Primary Contact Brian Lips
Campus Box 7401 North Carolina State University
Raleigh, NC 27695
U.S.A.
Brian Lips (brian_lips@ncsu.edu)
(919) 515-3954

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