Are you looking to reduce your taxes for 2015?
At least for now,* you can claim substantial tax credits in North Carolina for the construction, purchase, or lease of renewable energy systems on your property. N.C. Gen. Stat. § 105-129.16A. This includes, with specific requirements for each:
- biomass equipment,
- combined heat and power systems,
- geothermal equipment,
- hydroelectric generators,
- solar energy equipment, and
- wind equipment.
For residential systems, your credits are capped:
- Credits for the installation of solar energy systems can be claimed up the following amounts for a single dwelling:
- $1,400 for solar energy equipment used for domestic water heating,
- $3,500 for solar energy equipment used for active space heating, passive space heating, or combined active space and domestic water heating systems,
- Up to $8,400 in credits can be claimed for each geothermal system installation.
- Up to $10,500 in credits can be claimed for all other renewable energy systems.
* This credit is set to expire on January 1, 2016 – so you may need to move fast.
Companion bills have been introduced in the Senate and House (Energy Investment Act, S447, HB454) to extend the credits through 2020. This Act would also allow the credit to be used for electricity-generating solar energy equipment (in addition to the other solar energy systems already covered).