NC S706

Allows individual taxpayers claiming renewable energy tax credits against state income tax to carry forward unused credits for seven years instead of five years, if they meet specific conditions.

Extended carryforward eligibility requires that the taxpayer's top marginal income tax rate remains at or below 7% throughout the carryforward period; failure to maintain this rate results in forfeiture of remaining credits.

The extended carryforward period applies only to taxpayers who elect to claim the renewable energy tax credit against individual income tax under Part 2 of Article 4.

Unused credits expire immediately if the renewable energy property is disposed of, taken out of service, or moved out of state during any year an installment accrues, though previously accrued installments may be carried forward as permitted.

Effective for tax years beginning on or after July 1, 2013.