NC Renewable Tax Credits Set to Expire in 2015

The North Carolina various renewable-energy tax credit s provides for qualified cost of equipment, construction and installation paid by a taxpayer and placed into service during the tax year.  This credit is expiring December 31, 2015.

 

Program Requirements

Subject to a range of ceilings depending on category and sector of renewable-energy system.  The following credit limits for various technologies and sectors apply:

  • A maximum of $3,500 for non-business solar energy equipment for active space heating, combined active space and domestic water-heating systems, and passive space heating; 
  • A maximum of $1,400 for non-business solar water-heating systems, including solar pool-heating systems; 
  • A maximum of $10,500 for renewable-energy systems for non-business use; 
  • A maximum of $8,400 for geothermal equipment installation;
  • A maximum of $2,500,000 for solar, wind, hydro, geothermal and biomass applications on commercial and industrial facilities, including photovoltaic (PV), day lighting, solar water-heating and space-heating technologies.

 

The permissible credit may not exceed 50% of a taxpayer's state tax liability for the year, reduced by the sum of all other state tax 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. If the credit is not used entirely during the first year, the remaining amount may be carried over for the next five years. 

For all other taxpayers, 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 completely during these five years, the remainder is carried forward over the next five years.

 

Reference:

The North Carolina Renewable Energy Investment Tax Credit.  Retrieved http://c.ymcdn.com/sites/www.energync.org/resource/resmgr/legislative/taxcreditmemo_32515.pdf