NC S447

Extends the sunset date for the renewable energy tax credit from January 1, 2016 to January 1, 2021, allowing taxpayers to continue claiming a 35% credit on renewable energy property placed in service through December 31, 2020.

Modifies the definition of solar energy equipment eligible for the tax credit to include systems with generation capacity less than one megawatt, while maintaining the credit for non-electricity uses like water heating, space conditioning, and industrial process heat.

Credit for solar and wind renewable energy property can be taken in full for nonbusiness purposes in the year placed in service, or in five equal annual installments for business purposes beginning with the year of placement in service.

Excludes public funds from credit eligibility, with the exception of grants made under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009.

Changes to the definition of renewable energy property are effective for taxable years beginning on or after January 1, 2018.