GENERAL ASSEMBLY OF NORTH CAROLINA
1993 SESSION
CHAPTER 584
The General Assembly of North Carolina enacts:
Section 1. G.S. 105-130.23 reads as rewritten:
"§
105-130.23. Credit against corporate income tax for solar hot water,
heating and cooling. energy equipment in residential buildings.
(a) Any corporation which
that causes to be constructed or installed solar hot water,
heating or cooling equipment in buildings to include energy equipment
for water heating, space heating or cooling, or electricity in residential
buildings used or sold by the corporation for commercial or business purposes
in North Carolina shall be is allowed as a credit against
the taxes imposed by this Division, an amount Division equal to twenty-five
percent (25%) forty percent (40%) of the installation and equipment
cost of the solar hot water, heating or cooling equipment; provided, that energy
equipment. A credit allowed under this section shall not exceed one
thousand five hundred dollars ($1,000) ($1,500) per system
or per year for any single building or each family dwelling unit of a
multi-dwelling building which that is individually metered for
electric power or natural gas or with has a separate furnace for
oil heat paid for by the occupant; provided further, that to occupant.
To obtain the credit the taxpayer must own or control the use of the
building at the time of the installation, except that in the case of a building
constructed or modified for sale in which a solar system energy
equipment is constructed or installed, the credit shall be is allowed
to the owner who first occupies the building for use after the construction or
installation of the system equipment or the owner-lessor who
first leases the building for use after the construction or installation of the
system; provided, further, that the equipment. The credit
shall not be allowed to the extent that any of the cost of the system equipment
was provided by federal, State, or local grants; and provided further,
that if grants. If the credit allowed by this section exceeds
the taxes imposed by this Division reduced by all other credits allowed by
the provisions of this Division, such excess allowed, except payments of
tax made by or on behalf of the taxpayer, the excess shall be allowed
against the taxes imposed by this Division for the next three five succeeding
years.
(b) For the purpose of
this section, the term 'solar hot water, heating and cooling equipment' energy
equipment for water heating, space heating or cooling, or electricity' means
any hot water, heating, cooling, or heating and cooling equipment which solar
energy equipment for water heating, space heating or cooling, or electricity
that meets the definitive performance criteria established by the U.S.
Secretary of the Treasury or any other performance criteria approved and
published by the Secretary of Revenue, or passive solar systems that meet
the eligibility criteria approved and published by the Secretary of Revenue. Secretary."
Sec. 2. G.S. 105-130.28 reads as rewritten:
"§ 105-130.28. Credit against corporate income tax for construction of a photovoltaic equipment facility.
(a) Any corporation that
constructs in North Carolina a facility for the production of photovoltaic
equipment shall be is allowed a credit against the tax imposed by
this Division equal to twenty percent (20%) twenty-five percent (25%)
of the installation and equipment costs of construction. This credit shall
not be allowed to the extent that any of the costs of the system equipment
were provided by federal, State, or local grants. To secure the credit
allowed by this section, the taxpayer must own or control the facility at the
time of construction. The credit allowed by this section may not exceed the
amount of the tax imposed by this Division for the taxable year reduced by the
sum of all credits allowable under this Division, except payments of tax made
by or on behalf of the taxpayer.
(b) As used in this
section, 'photovoltaic equipment' means those products designed, manufactured,
and produced to convert sunlight directly into electricity without a need
for additional generating or conversion equipment. electricity.
(c) The amount of credit allowed under this section may be carried over for the next succeeding five years."
Sec. 3. G.S. 105-130.32 reads as rewritten:
"§
105-130.32. Credit against corporate income tax for installation of solar
energy equipment for the production of industrial or process heat. heat
or electricity in certain processes.
(a) Any corporation that
constructs or installs solar energy equipment for the production of heat
or electricity in the manufacturing or service processes of its business
located in this State shall be is allowed a credit against the
tax imposed by this Division equal to twenty percent (20%) thirty-five
percent (35%) of the installation and equipment costs of the solar energy
equipment. The credit allowed under this section may not exceed eight twenty-five
thousand dollars ($8,000) ($25,000) for any single
installation. This credit shall not be allowed to the extent that any of the
costs of the system equipment were provided by federal, State, or
local grants. To secure the credit allowed by this section, the taxpayer must
own or control the business at the time the solar energy equipment is
installed. The credit allowed by this section may not exceed the amount of the
tax imposed by this Division for the taxable year reduced by the sum of all
credits allowable under this Division, except payments of tax made by or on
behalf of the taxpayer.
(b) As used in this section, 'solar energy equipment' means equipment and materials designed to collect, store, transport, or control energy derived directly from the sun."
Sec. 4. G.S. 105-151.2 reads as rewritten:
"§
105-151.2. Credit for solar hot water, heating, and cooling. energy
equipment.
(a) A person or
partnership who causes to be constructed or installed a solar hot
water, heating, or cooling system energy equipment for water heating,
space heating or cooling, or electricity in any building in North Carolina shall
be is allowed as a credit against the tax imposed by this
Division an amount equal to twenty-five percent (25%) forty
percent (40%) of the installation and equipment cost of the solar hot
water, heating, or cooling equipment; provided, that the energy
equipment. A credit allowed under this section may shall not
exceed one thousand five hundred dollars ($1,000) ($1,500) per
system or per year on any single building or for each family dwelling unit of a
multi-dwelling building which that is individually metered for
electric power or natural gas or with has a separate furnace for
oil heat paid for by the occupant; provided further, that to occupant.
To obtain the credit the taxpayer must own or control the use of the
building at the time of the installation, except that in the case of a building
constructed or modified for sale in which a solar system energy
equipment is constructed or installed, the credit shall be allowed to the
owner who first occupies the building for use after the construction or
installation of the system equipment or the owner-lessor who
first leases the building for use after the construction or installation of the
system; provided further, that the equipment. The credit
shall not be allowed to the extent that any of the cost of the system equipment
was provided by federal, State, or local grants; and provided further,
that if grants. If the credit allowed by this section exceeds
the taxes imposed by this Division reduced by all other credits allowed by
the provisions of this Division, allowed, except payments of tax made by
or on behalf of the taxpayer, the excess shall be allowed against the taxes
imposed by this Division for the next three five succeeding
years.
(b) In the case of property owned by the entirety, if both spouses are required to file North Carolina income tax returns, the credit allowed by this section may be claimed only if the spouses file a joint return. If only one spouse is required to file a North Carolina income tax return, that spouse may claim the credit allowed by this section on a separate return.
(c) For the purpose of
this section, the term 'solar hot water, heating, and cooling equipment' energy
equipment for water heating, space heating or cooling, or electricity' means
any hot water, heating, cooling, or heating and cooling equipment which solar
energy equipment for water heating, space heating or cooling, or electricity
that meets the definitive performance criteria established by the U.S.
Secretary of the Treasury or any other performance criteria approved and
published by the Secretary of Revenue, or passive solar systems that meet
the eligibility criteria approved and published by the Secretary of Revenue. Secretary."
Sec. 5. G.S. 105-151.8 reads as rewritten:
"§
105-151.8. Credit for installation of solar energy equipment for
the production of industrial or process heat. heat or electricity in
certain processes.
(a) A person who
constructs or installs solar energy equipment for the production of heat
or electricity in the manufacturing or service processes of his the
person's business located in this State shall be is allowed as
a credit against the tax imposed by this Division an amount equal to
twenty percent (20%) thirty-five percent (35%) of the
installation and equipment costs of the solar energy equipment. The
credit allowed under this section may not exceed eight twenty-five thousand
dollars ($8,000) ($25,000) for any single installation. This
credit shall not be allowed to the extent that any of the costs of the system
equipment were provided by federal, State, or local grants. To
secure the credit allowed by this section, the taxpayer must own or control the
business at the time the solar energy equipment is installed. The credit
allowed by this section may not exceed the amount of tax imposed by this
Division for the taxable year reduced by the sum of all credits allowable under
this Division, except payment payments of tax made by or on
behalf of the taxpayer. In no case shall a tax credit be allowed under both
this section and G.S. 105-151.2.
(b) In the case of property owned by the entirety, if both spouses are required to file North Carolina income tax returns, the credit allowed by this section may be claimed only if the spouses file a joint return. If only one spouse is required to file a North Carolina income tax return, that spouse may claim the credit allowed by this section on a separate return.
(c) As used in this section, 'solar energy equipment' means equipment and materials designed to collect, store, transport, or control energy derived directly from the sun."
Sec. 6. This act is effective for taxable years beginning on or after January 1, 1994.
In the General Assembly read three times and ratified this the 30th day of June, 1994.
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Dennis A. Wicker
President of the Senate
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Daniel Blue, Jr.
Speaker of the House of Representatives