Franchise, Income, and Gross Premium Tax Directive CD-08-2

Subject:           Revised Guidelines for Renewable Energy Tax Credit              
Tax:                    Franchise Tax, Income Tax, and Gross Premium Tax                                           
Law:                  G.S. 105-129.16A and other Supporting Statutes in Chapter 105, Article 3B
Issued By:       Corporate, Excise, and Insurance Tax Division and Personal Taxes Division
Date:                 September 15, 2008 
Number:          CD-08-2

In 2005, the General Assembly extended the renewable energy property tax credit, which was scheduled to expire January 1, 2006, for an additional five years and amended several provisions of the tax credit statute. These changes included increasing the maximum credit for nonresidential property; expanding the definition of eligible renewable biomass resources; and clarifying that residential solar pool heating equipment is eligible for the credit. The 2007 session of the General Assembly further expanded the tax credit to allow a taxpayer who donates money to a tax-exempt nonprofit to help fund a renewable energy project to claim the renewable energy property tax credit in proportion to the project costs donated. The 2008 session of the General Assembly amended the credit to include donations made to units of state and local government.

The document, Guidelines for Determining the Tax Credit for Investing in Renewable Energy Property, which was addressed in Directive PD-00-3 dated December 4, 2000, has been revised to reflect the law changes. The revised document is available on the Department's website.

Questions 

Questions regarding this Directive may be directed to the Corporate, Excise, and Insurance Tax Division at 919-733-8510 or the Personal Taxes Division at (919) 733-3565.