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The information contained in these instructions is to be used as a guide in the preparation of the North Carolina C-Corporation tax return and is not intended to cover all provisions of the law.

The information contained in these instructions is to be used as a guide in the preparation of the North Carolina S-Corporation tax return and is not intended to cover all provisions of the law.

A taxpayer claiming a credit under Article 3L must complete the NC-Rehab form and place it on the front of the completed tax return. In addition, in order to take the tax credit, a taxpayer must complete and attach any necessary tax credit summary form, i.e. Form CD-425 (Corporate Tax Credit Summary), Form D-400TC (Individual Income Tax Credits), or Form 403TC (Partnership Tax Credit Summary). Important. Failure to include a Form NC-Rehab with your tax return may result in the disallowance of these tax credits.  

The credit for investing in real property was repealed effective for business activities that occurred on or after January 1, 2014. Taxpayers may continue to take the remaining installments and carryforwards of prior years’ credits by completing Parts 3 and 4 of Form NC-478L.

The credit for investing in business property was repealed effective for business activities that occurred on or after January 1, 2014. Taxpayers may continue to take the remaining installments and carryforwards of prior years’ credits by completing Parts 3 and 4 of Form NC-478K.

The credit for creating jobs was repealed effective for business activities that occurred on or after January 1, 2014. Taxpayers may continue to take the remaining installments and carryforwards of prior years’ credits by completing Parts 2 and 3 of Form NC-478J.

IMPORTANT: DELAYED SUNSET. For most taxpayers, the credit for investing in renewable energy property was repealed effective for renewable energy property placed in service on or after January 1, 2016. Taxpayers that met the requirements of G.S. 105-129.16A(f) qualified for a one-year extension of the sunset date for renewable energy property placed in service before January 1, 2017.

Most of the tax credits on Form NC-478 expired on or before January 1, 2016. Taxpayers may continue to take the remaining installments and carryforwards of prior years' credits in Part 1.

2017 NC-478 Pass-through Schedule for NC-478 Series

Form CD-425 must be attached to the last page of CD-405 or CD-401S if a tax credit is taken.

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