2005 North Carolina Code - General Statutes § 105-129.16A. Credit for investing in renewable energy property.

§ 105‑129.16A.  Credit for investing in renewable energy property.

(a)       Credit. – If a taxpayer that has constructed, purchased, or leased renewable energy property places it in service in this State during the taxable year, the taxpayer is allowed a credit equal to thirty‑five percent (35%) of the cost of the property. In the case of renewable energy property that serves a single‑family dwelling, the credit must be taken for the taxable year in which the property is placed in service. For all other renewable energy property, the entire credit may not be taken for the taxable year in which the property is placed in service but must be taken in five equal installments beginning with the taxable year in which the property is placed in service.

(b)       Expiration. – If, in one of the years in which the installment of a credit accrues, the renewable energy property with respect to which the credit was claimed is disposed of, taken out of service, or moved out of State, the credit expires and the taxpayer may not take any remaining installment of the credit. The taxpayer may, however, take the portion of an installment that accrued in a previous year and was carried forward to the extent permitted under G.S. 105‑129.17. No credit is allowed under this section to the extent the cost of the renewable energy property was provided by public funds.

(c)       (Effective for taxable years beginning before January 1, 2006) Ceilings. – The credit allowed by this section may not exceed the applicable ceilings provided in this subsection.

(1)       Nonresidential Property. – A ceiling of two hundred fifty thousand dollars ($250,000) per installation applies to renewable energy property placed in service for any purpose other than residential.

(2)       Residential Property. – The following ceilings apply to renewable energy property placed in service for residential purposes:

a.         One thousand four hundred dollars ($1,400) per dwelling unit for solar energy equipment for domestic water heating.

b.         Three thousand five hundred dollars ($3,500) per dwelling unit for solar energy equipment for active space heating, combined active space and domestic hot water systems, and passive space heating.

c.         Ten thousand five hundred dollars ($10,500) per installation for any other renewable energy property for residential purposes.

(c)       (Effective for taxable years beginning on or after January 1, 2006) Ceilings. – The credit allowed by this section may not exceed the applicable ceilings provided in this subsection.

(1)       Nonresidential Property. – A ceiling of two million five hundred thousand dollars ($2,500,000) per installation applies to renewable energy property placed in service for any purpose other than residential.

(2)       Residential Property. – The following ceilings apply to renewable energy property placed in service for residential purposes:

a.         One thousand four hundred dollars ($1,400) per dwelling unit for solar energy equipment for domestic water heating, including pool heating.

b.         Three thousand five hundred dollars ($3,500) per dwelling unit for solar energy equipment for active space heating, combined active space and domestic hot water systems, and passive space heating.

c.         Ten thousand five hundred dollars ($10,500) per installation for any other renewable energy property for residential purposes.

(d)       (Effective for taxable years beginning on or after January 1, 2006) No Double Credit. – A taxpayer that claims any other credit allowed under this Chapter with respect to renewable energy property may not take the credit allowed in this section with respect to the same property. A taxpayer may not take the credit allowed in this section for renewable energy property the taxpayer leases from another unless the taxpayer obtains the lessor's written certification that the lessor will not claim a credit under this Chapter with respect to the property.

(e)       Sunset. – This section is repealed effective for renewable energy property placed into service on or after January 1, 2011. (1999‑342, s. 2; 2005‑413, s. 5.)