NC H1123

Reenacts G.S. 105-129.16A to restore a 35% tax credit for taxpayers who construct, purchase, or lease qualifying solar energy equipment placed in service in North Carolina.

For nonbusiness solar installations, the full credit is taken in the tax year equipment is placed in service; for business installations, the credit is taken in five equal annual installments beginning in the year equipment is placed in service.

Establishes credit ceilings of $2,500,000 per installation for business purposes, $1,400 to $10,500 per dwelling unit for nonbusiness purposes (varying by equipment type), and $5,000,000 for installations at certified Eco-Industrial Parks.

Prohibits claiming the solar energy credit if the equipment cost was covered by public funds (except certain American Recovery and Reinvestment Act grants) and prevents double-crediting on the same property equipment.

Credit expires if the equipment is disposed of, taken out of service, or moved out of state before all installments accrue; effective for taxable years beginning January 1, 2022.