NC H131

Reenacts a 35% tax credit for taxpayers who construct, purchase, or lease qualifying solar energy equipment placed in service in North Carolina, effective for taxable years beginning on or after January 1, 2025

Nonbusiness installations receive the full credit in the year equipment is placed in service; business installations must take the credit in five equal annual installments

Credit ceiling for business purposes is $2,500,000 per installation, or $5,000,000 for installations at certified Eco-Industrial Parks

Nonbusiness credit ceilings range from $1,400 per dwelling unit for solar water heating to $3,500 per dwelling unit for active space heating systems

Credit is disallowed to the extent equipment costs were paid with public funds, and taxpayers cannot claim this credit if another tax credit is claimed for the same equipment