A BILL TO BE ENTITLED
AN ACT to provide incentives for the development and manufacture of components for plug‑in electric vehicles.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  G.S. 105‑129.50 is amended by adding a new subdivision to read:
"(5a)	Plug‑in electric vehicle component. – Devices for plug‑in electric vehicles as defined in G.S. 20‑4.01(28a), including devices for energy storage, load management, metering, and energy recharging."
SECTION 1.(b)  G.S. 105‑129.55(a) is amended by adding a new subdivision to read:
"(2c)	Plug‑in electric vehicle component. – For expenses with respect to research conducted for components of plug‑in electric vehicles, the applicable percentage is five percent (5%)."
SECTION 2.(a)  G.S. 105‑129.15 is amended by adding a new subdivision to read:
"(4c)	Plug‑in electric vehicle component. – Devices for plug‑in electric vehicles as defined in G.S. 20‑4.01(28a), including devices for energy storage, load management, metering, and energy recharging."
SECTION 2.(b)  Article 3B of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑129.16K.  Credit for plug‑in electric vehicle component facility.
(a)	Credit. – A taxpayer that places in service in this State a commercial facility for the manufacture of components for plug‑in electric vehicles is allowed a credit. A taxpayer places a facility in service if it constructs the facility, converts its existing manufacturing facility to change the product it manufactures, or expands its existing facility that manufactures components for plug‑in electric vehicles. To qualify for the credit for expansion, the expansion must result in an increase in production of components for plug‑in electric vehicles. For a taxpayer that constructs a facility, the credit is twenty‑five percent (25%) of the taxpayer's cost to construct and equip the facility. For a taxpayer that converts a facility, the credit is twenty‑five percent (25%) of the taxpayer's cost to convert and equip the existing facility. For a taxpayer that expands a facility, the credit is twenty‑five percent (25%) of the taxpayer's cost to expand and equip the facility. A taxpayer that claims any other credit allowed under this Chapter with respect to the facility may not take the credit allowed in this section with respect to that facility.
(b)	Installments. – The entire credit may not be taken for the taxable year in which the facility is placed in service but must be taken in five equal annual installments beginning with the taxable year in which the facility is placed in service. If, in one of the years in which the installment of a credit accrues, the facility with respect to which the credit was claimed is disposed of or taken out of service, the credit expires, and the taxpayer may not take any remaining installment of the credit. The taxpayer may, however, take the portion of an installment that accrued in a previous year and was carried forward to the extent permitted under G.S. 105‑129.17.
(c)	Sunset. – This section is repealed effective for a facility placed in service, converted, or expanded on or after January 1, 2017."
SECTION 3.  This act is effective for taxes imposed for taxable years beginning on or after July 1, 2012.