NC H454

Extends the renewable energy tax credit sunset date from January 1, 2016 to January 1, 2021, allowing taxpayers to continue claiming a 35% credit on the cost of renewable energy property placed in service during this period.

Modifies the definition of solar energy equipment eligible for the tax credit to include systems generating electricity with an aggregate capacity of less than one megawatt, while removing the blanket allowance for electricity-generating solar equipment.

Maintains the 35% tax credit structure with special provisions: nonbusiness solar property claims the full credit in the year placed in service, while other renewable energy property claims the credit in five equal annual installments.

Excludes renewable energy property funded by public funds from the tax credit, with an exception for grants under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009.

Makes changes to solar equipment definitions effective for property placed in service in taxable years beginning on or after January 1, 2018.