North Carolina Tax Credits

North Carolina Tax Credits

Renewable Energy Credits

Characteristics of North Carolina Renewable Energy Credits:

  • Subject to a $2.5M cap per installation.
  • May be bifurcated from federal credits and allocated solely to taxpayers desiring only NC tax credits, through leasing structures.
  • Partnership allocations are based on distributive shares determined by state statutes and I.R.C. Sections 702 and 704.
  • Credits accrue over a five-year period, and can be differently allocated each year based on ownership within the fund’s investor pool.
  • May be used to offset 50% of a taxpayer’s NC corporate or individual income tax liability, gross premiums tax, or franchise tax.
  • Excess credits carry forward for five years.
  • No formal recapture provisions: once the credit has been calculated, earned and used to satisfy tax liability, it cannot be taken back on successive returns.

Mill Rehabilitation Credits

Characteristics of North Carolina Mill Rehabilitation Credits:

  • May be used to offset a taxpayer’s NC corporate or individual income tax liability, gross premiums tax, or franchise tax.
  • May offset 100% of taxpayer’s liability.
  • Excess credits carry forward for nine years.
  • No recapture unless ownership changes within five years of receiving the credit.

Historic Preservation Credits

Characteristics of North Carolina Historic Preservation Credits:

  • May be used to offset a taxpayer’s NC corporate or individual income tax liability, gross premiums tax, or franchise tax.
  • May offset 100% of taxpayer liability.
  • Excess credits carry forward for nine years.
  • Credit is not “stackable” with other NC tax credits.
  • Credit “sunsets” Jan 1, 2020.