Renewable Energy Property Tax Credit

Expired: 01/01/2016

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Taxpayers who construct, purchase, or lease renewable energy property may qualify for a tax credit equal to 35% of the cost of the property. Renewable energy property includes equipment that uses renewable biomass to produce ethanol, methanol, biodiesel, or methane produced from anaerobic biogas, using agricultural and animal waste or garbage; and related devices for converting, conditioning, and storing the liquid fuels and gas produced with the biomass equipment. The taxpayer must claim the credit in five equal installments beginning with the taxable year in which the property is placed into service. There is a maximum credit amount of $2.5 million per installation, which applies to renewable energy property placed in service for any purpose other than residential. To qualify, property must be placed into service before January 1, 2016. (Reference North Carolina General Statutes 105-129.15 and 105-129.16A)