GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

S	1 

SENATE BILL 1045

Short Title:  Photovoltaic Equipment Tax Credit.	(Public)
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Sponsors: Senator Allran.
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Referred to:  Finance.
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May 5, 1993

A BILL TO BE ENTITLED
AN ACT TO PROVIDE INCOME TAX CREDITS FOR THE PRODUCTION AND INSTALLATION OF PHOTOVOLTAIC EQUIPMENT.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-130.23 reads as rewritten:
"§ 105-130.23. Credit against corporate income tax for solar and photovoltaic hot water, heating, and cooling.
(a)	Any corporation which causes to be constructed or installed solar or photovoltaic hot water, heating, or cooling equipment in buildings to include residential buildings used or sold by the corporation for commercial or business purposes in North Carolina shall be allowed as a credit against the taxes imposed by this Division, an amount equal to fifty percent (50%) of the installation and equipment cost of the solar or photovoltaic hot water, heating, or cooling equipment.  A credit allowed under this section shall not exceed two  thousand dollars ($2,000) per system or per year for any single building or each family dwelling unit of a multi-dwelling building which is individually metered for electric power or natural gas or with separate furnace for oil heat paid for by the occupant.  To obtain the credit the taxpayer must own or control the use of the building at the time of the installation, except that in the case of a building constructed or modified for sale in which a solar or photovoltaic system is constructed or installed, the credit shall be allowed to the owner who first occupies the building for use after the construction or installation of the system or the owner-lessor who first leases the building for use after the construction or installation of the system.  The credit shall not be allowed to the extent that any of the cost of the system was provided by federal, State, or local grants.  If the credit allowed by this section exceeds the taxes imposed by this Division reduced by all other credits allowed, the excess  shall be allowed against the taxes imposed by this Division for the next five succeeding years.
(b)	For the purpose of this section, the term 'solar hot water, heating, and cooling equipment' means any hot water, heating, cooling, or heating and cooling equipment which meets the definitive performance criteria established by the U.S. Secretary of the Treasury or any other performance criteria approved and published by the Secretary of Revenue, or passive solar systems that meet the eligibility criteria approved and published by the Secretary of Revenue.  For the purpose of this section, the term 'photovoltaic hot water, heating, and cooling equipment' means hot water, heating, cooling, or heating and cooling equipment that converts sunlight directly into electricity without a need for additional generating or conversion equipment."
Sec. 2.  G.S. 105-130.28 reads as rewritten:
"§ 105-130.28. Credit against corporate income tax for construction of a photovoltaic equipment facility.
(a)	Any corporation that constructs in North Carolina a facility for the production of photovoltaic equipment shall be allowed a credit against the tax imposed by this Division equal to fifty percent (50%) of the installation and equipment costs of construction. This credit shall not be allowed to the extent that any of the costs of the system were provided by federal, State, or local grants. To secure the credit allowed by this section, the taxpayer must own or control the facility at the time of construction. The credit allowed by this section may not exceed the amount of the tax imposed by this Division for the taxable year reduced by the sum of all credits allowable under this Division, except payments of tax made by or on behalf of the taxpayer.
(b)	As used in this section, 'photovoltaic equipment' means those  products designed, manufactured, and produced to convert sunlight directly into electricity without a need for additional generating or  conversion equipment.
(c)	The amount of credit allowed under this section may be carried over for the next succeeding five years."
Sec. 3.  G.S. 105-130.32 reads as rewritten:
"§ 105-130.32. Credit against corporate income tax for installation of solar and photovoltaic equipment for the production of industrial or process heat.
(a)	Any corporation that constructs or installs solar or photovoltaic equipment for the production of heat in the manufacturing or service processes of its business located in this State shall be allowed a credit against the tax imposed by this Division equal to fifty percent (50%)  of the installation and equipment costs of the solar equipment. The credit allowed under this section may not exceed eight thousand dollars ($8,000) for any single installation. This credit shall not be allowed to the extent that any of the costs of the system were provided by federal, State, or local grants. To secure the credit allowed by this section, the taxpayer must own or control the business at the time the solar equipment is installed. The credit allowed by this section may not exceed the amount of the tax imposed by this Division for the taxable year reduced by the sum of all credits allowable under this Division, except payments of tax made by or on behalf of the taxpayer.
(b)	As used in this section, 'solar equipment' means equipment and materials designed to collect, store, transport, or control energy derived directly from the sun.  As used in this section, 'photovoltaic equipment' means those products designed to convert sunlight directly into electricity without a need for additional generating or conversion equipment."
Sec. 4.  G.S. 105-151.2 reads as rewritten:
"§ 105-151.2.  Credit for solar and photovoltaic hot water, heating, and cooling.
(a)	A person or partnership who causes to be constructed or installed a solar or photovoltaic hot water, heating, or cooling system in any building in North Carolina shall be allowed as a credit against the tax imposed by this Division an amount equal to fifty percent (50%) of the installation and equipment cost of the solar hot water, heating, or cooling equipment.  The credit allowed under this section may not exceed two thousand dollars ($2,000) per system or per year on any single building or for each family dwelling unit of a multi-dwelling building which is individually metered for electric power or natural gas or with separate furnace for oil heat paid for by the occupant.  To obtain the credit the taxpayer must own or control the use of the building at the time of the installation, except that in the case of a building constructed or modified for sale in which a solar system is constructed or installed, the credit shall be allowed to the owner who first occupies the building for use after the construction or installation of the system or the owner-lessor who first leases the building for use after the construction or installation of the system.  The credit shall not be allowed to the extent that any of the cost of the system was provided by federal, State, or local grants.  If the credit allowed by this section exceeds the taxes imposed by this Division reduced by all other credits allowed, the excess shall be allowed against the taxes imposed by this Division for the next five succeeding years.
(b)	In the case of property owned by the entirety, if both spouses are required to file North Carolina income tax returns, the credit allowed by this section may be claimed only if the spouses file a joint return. If only one spouse is required to file a North Carolina income tax return, that spouse may claim the credit allowed by this section on a separate return.
(c)	For the purpose of this section, the term 'solar hot water, heating, and cooling equipment' means any hot water, heating, cooling, or heating and cooling equipment which meets the definitive performance criteria established by the U.S. Secretary of the Treasury or any other performance criteria approved and published by the Secretary of Revenue, or passive solar systems that meet the eligibility criteria approved and published by the Secretary of Revenue.  For the purpose of this section, the term 'photovoltaic hot water, heating, and cooling equipment' means hot water, heating, cooling, or heating and cooling equipment that converts sunlight directly into electricity without a need for additional generating or conversion equipment."
Sec. 5.  G.S. 105-151.8 reads as rewritten:
"§ 105-151.8.  Credit for installation of solar and photovoltaic equipment for the production of industrial or process heat.
(a)	A person who constructs or installs solar  or photovoltaic equipment for the production of heat in the manufacturing or service processes of his business located in this State shall be allowed as a credit against the tax imposed by this Division an amount equal to fifty percent (50%) of the installation and equipment costs of the solar equipment. The credit allowed under this section may not exceed eight thousand dollars ($8,000) for any single installation. This credit shall not be allowed to the extent that any of the costs of the system were provided by federal, State, or local grants. To secure the credit allowed by this section, the taxpayer must own or control the business at the time the solar equipment is installed. The credit allowed by this section may not exceed the amount of tax imposed by this Division for the taxable year reduced by the sum of all credits allowable under this Division, except payment of tax made by or on behalf of the taxpayer. In no case shall a tax credit be allowed under both this section and G.S. 105-151.2.
(b)	In the case of property owned by the entirety, if both spouses are required to file North Carolina income tax returns, the credit allowed by this section may be claimed only if the spouses file a joint return. If only one spouse is required to file a North Carolina income tax return, that spouse may claim the credit allowed by this section on a separate return.
(c)	As used in this section, 'solar equipment' means equipment and materials designed to collect, store, transport, or control energy derived directly from the sun.  As used in this section, 'photovoltaic equipment' means those products designed to convert sunlight directly into electricity without a need for additional generating or conversion equipment."
Sec. 6.  This act is effective for taxable years beginning on or after January 1, 1993.