Combined Heat and Power Partnership
Renewable Energy Tax Credit
| Date Last Updated | 11/16/2012 |
| Incentive Type | Tax |
| State/Federal | NC |
| Incentive Administrator/Contact Office | NC Department of Revenue |
| Incentive Initiation Date | 1/1/1977 |
| Incentive Expiration Date | 12/31/2015 |
| Incentive Size and Funding Source | 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. There is a maximum of $10,500 per installation for CHP systems or certain other renewable-energy systems used for a non-business purpose. There is a maximum of $2.5 million per installation for all CHP (as defined by Section 48 of the U.S. Tax Code) used for a business purpose, meaning the useful energy generated by the property is offered for sale or is used on-site for a purpose other than providing energy to a residence. Renewable-energy equipment expenditures 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 provided by public funds. The allowable 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 entirely during these 5 years, the remaining amount may be carried over for the next 5 years. The credit can be taken against franchise tax, corporate tax, income tax or in the case of insurance companies, against the gross premiums tax. |
| Eligible Recipient | Owners of renewable energy property constructed, purchased or leased and placed into service in North Carolina during the taxable year. |
| Eligible Fuel | Does Not Specify |
| Eligible Project Size (MW) | Does Not Specify |
| Minimum Efficiency Required (%) | Does Not Specify |
| Application Form(s) | Tax Form NC-478G (PDF) (2 pp, 179K) Tax Form NC-478 (PDF) (2 pp, 232K) |
| Resource Website(s) |
