Bill > H131

This bill reenacts a solar energy tax credit in North Carolina, reestablishing a previous tax incentive for individuals and businesses that invest in solar energy equipment. The bill allows taxpayers a credit equal to 35% of the cost of qualifying solar energy equipment placed in service in the state, with different provisions for business and nonbusiness uses. For business purposes, there is a $2.5 million ceiling per installation, while nonbusiness installations have specific dollar limits per dwelling unit for different types of solar equipment (such as $1,400 for domestic water heating and $3,500 for active space heating). The credit can be taken either in the year of service for nonbusiness equipment or in five equal installments for business equipment. Importantly, the credit cannot be claimed if the equipment's cost was provided by public funds, and taxpayers cannot claim multiple credits for the same solar energy equipment. The bill specifies that this tax credit will be effective for taxable years beginning on or after January 1, 2025, effectively reviving a previously expired solar energy investment incentive to encourage renewable energy adoption in the state.

Government Affairs

https://www.ncleg.gov/BillLookUp/2025/H131