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Combined Heat and Power Partnership

Renewable Energy Tax Credit

dCHPP Glossary (PDF) (2 pp, 53K)

Date Last Updated5/28/2015
Incentive TypeTax
Incentive Administrator/Contact OfficeNC Department of Revenue
Incentive Initiation Date1/1/1977
Incentive Expiration Date12/31/2016
Incentive Size and Funding SourceNorth Carolina offers a tax credit equal to 35% of the cost of eligible renewable energy property placed into service in North Carolina. There is a maximum credit of $10,500 per installation for CHP systems or certain other renewable-energy systems used for a non-business purpose. There is a maximum credit of $2.5 million per installation for all CHP systems (as defined by Section 48 of the U.S. Tax Code) and biomass applications used for a business purpose, meaning the useful energy generated by the property is offered for sale or is used on-site for a purpose other than providing energy to a residence. The amount of the credit may also be limited by the taxpayer's 2015 tax liability.
Eligible RecipientOwners of renewable energy property constructed, purchased or leased and placed into service in North Carolina during the taxable year.
Eligible FuelDoes Not Specify
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required (%)Does Not Specify
Other Selected Eligibility CriteriaSystem must be new and in compliance with all applicable performance and safety standards. Specific equipment and installation requirements vary by technology.
Application Form(s)Tax Form NC-478G (PDF) (2 pp, 179K)

Tax Form NC-478 (PDF) (2 pp, 232K)
Other Incentive DetailsProjects less than 65 MW must have incurred 80% of costs and completed 80% of construction by December 31, 2015. Projects 65 MW or larger must have incurred 50% of costs and completed 50% of construction by December 31, 2015. All projects must be placed in service by December 31, 2016.
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