North Carolina Solar Rebates and Incentives
|Program Type||Corporate tax credit|
|Technologies||Photovoltaics, passive solar, solar thermal, wind, biomass, others|
|Amount||35 percent up to $2.5 million per installation|
|Required Documentation||Installation and compliance records|
North Carolina offers a corporate tax credit similar to its personal tax credit for renewable energy installations.
The state will rebate up to 35 percent of the cost of an eligible renewable energy investment. The credit has been ammended several times since its original passage in 2009 and has been extended through 2015.
The program permits:
- 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.
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. SB 388 of 2010 clarified that federal grants made available by Section 1603 of the American Recovery and Reinvestment Tax Act of 2009 do not constitute 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 five years, the remaining amount may be carried over for the next five 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.