Characteristics of North Carolina Solar Credits:
- Subject to a $2.5 million cap per installation.
- Can only be used to offset 50% of a N.C. taxpayer’s corporate or individual income tax liability. The 50% limitation is taken into account after the application of all 100% credits.
- Partnership allocations are based on distributive shares determined by state statutes and I.R.C. Sections 702 and 704.
- Five-year carry forward of unused credits.
- May be bifurcated from federal credits through a capital lease structure and allocated solely to taxpayers desiring only NC tax credits.
- Can be allocated to different investors each year, as they accrue over a five-year period.
- No formal recapture provisions. Once the credit has been calculated and earned, the investor cannot lose them in successive years.