2005 North Carolina Code - General Statutes § 105-151.21. Credit for property taxes paid on farm machinery.

§ 105‑151.21.  Credit for property taxes paid on farm machinery.

(a)       Credit. – An individual engaged in the business of farming is allowed a credit against the tax imposed by this Part equal to the amount of property taxes the individual paid at par during the taxable year on farm machinery and on attachments and repair parts for farm machinery. In addition, an individual shareholder of an S Corporation engaged in the business of farming is allowed a credit against the tax imposed by this Part equal to the shareholder's pro rata share of the amount of property taxes the S Corporation paid at par during the taxable year on farm machinery and on attachments and repair parts for farm machinery. The total credit allowed under this section may not exceed one thousand dollars ($1,000) for the taxable year and may not exceed the amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowable, except payments of tax made by or on behalf of the taxpayer. To claim the credit, the taxpayer shall attach to the return a copy of the tax receipt for the property taxes for which credit is claimed. The receipt must indicate that the taxes have been paid and the amount and date of the payment.

(b)       (Effective for taxable years before January 1, 2006) Definitions. The following definitions apply in this section:

(1)       Farm machinery. Machinery subject to State sales tax at the rate of one percent (1%) under G.S. 105‑164.4A.

(2)       Property taxes. The principal amount of taxes levied and assessed by a taxing unit under Subchapter II of this Chapter. The term does not include costs, penalties, interest, or other charges that may be added to the principal amount.

(3)       Taxing unit. Defined in G.S. 105‑273.

(b)       (Effective for taxable years beginning on or after January 1, 2006) Definitions. – The following definitions apply in this section:

(1)       Farm machinery. – Machinery exempt from State sales tax under G.S. 105‑164.13(1)b.

(2)       Property taxes. – The principal amount of taxes levied and assessed by a taxing unit under Subchapter II of this Chapter. The term does not include costs, penalties, interest, or other charges that may be added to the principal amount.

(3)       Taxing unit. – Defined in G.S. 105‑273.

(c)       Adjustment. If a taxing unit gives a taxpayer a credit or refund for any of the property taxes for which the taxpayer claimed a credit under this section, the taxpayer shall notify the Secretary within 90 days. The Secretary shall then recompute the credit allowed under this section and make any resulting adjustment of income tax for the taxable year for which the credit was claimed. (1985, c. 656, s. 13(3); 1987, c. 804, s. 6; 1991, c. 45, s. 14(a); 1998‑98, s. 103; 2001‑414, s. 11; 2005‑276, s. 33.25.)