A BILL TO BE ENTITLED
AN ACT to reenact a solar energy tax credit.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑129.16A is reenacted as it existed immediately before its expiration and reads as rewritten:
"§ 105‑129.16A.  Credit for investing in solar energy equipment.
(a)	Credit. – A taxpayer that has constructed, purchased, or leased qualifying solar energy equipment is allowed a credit equal to thirty‑five percent (35%) of the cost of the equipment if the equipment is placed in service in this State during the taxable year. In the case of qualifying solar energy equipment that serves a nonbusiness purpose, the credit must be taken for the taxable year in which the equipment is placed in service. For all other qualifying solar energy equipment, the entire credit may not be taken for the taxable year in which the equipment is placed in service but must be taken in five equal installments beginning with the taxable year in which the equipment is placed in service. Upon request of a taxpayer that leases qualifying solar energy equipment, the lessor of the equipment must give the taxpayer a statement that describes the qualifying solar energy equipment and states the cost of the equipment. No credit is allowed under this section to the extent the cost of the qualifying solar energy equipment was provided by public funds. For the purposes of this section, "qualifying solar energy equipment" is equipment described in G.S. 105‑129.15(7)e.
(b)	Expiration. – If, in one of the years in which the installment of a credit accrues, the qualifying solar energy equipment with respect to which the credit was claimed is disposed of, taken out of service, or moved out of State, 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)	Ceilings. – The credit allowed by this section may not exceed the applicable ceilings provided in this subsection.
(1)	Business. – A ceiling of two million five hundred thousand dollars ($2,500,000) applies to each installation of qualifying solar energy equipment placed in service for a business purpose. Qualifying solar energy equipment is placed in service for a business purpose if the useful energy generated by the equipment is offered for sale or is used on‑site for a purpose other than providing energy to a residence.
(2)	Nonbusiness. – The following ceilings apply to qualifying solar energy equipment placed in service for a nonbusiness purpose:
a.	One thousand four hundred dollars ($1,400) per dwelling unit for solar energy equipment for domestic water heating, including pool heating.
b.	Three thousand five hundred dollars ($3,500) per dwelling unit for solar energy equipment for active space heating, combined active space and domestic hot water systems, and passive space heating.

(3)	Eco‑Industrial Park. – A ceiling of five million dollars ($5,000,000) applies to each installation of qualifying solar energy equipment placed in service at an Eco‑Industrial Park certified under G.S. 143B‑437.08 for a business purpose described in subdivision (1) of this subsection.
(d)	No Double Credit. – A taxpayer that claims any other credit allowed under this Chapter with respect to qualifying solar energy equipment may not take the credit allowed in this section with respect to the same equipment. A taxpayer may not take the credit allowed in this section for qualifying solar energy equipment the taxpayer leases from another unless the taxpayer obtains the lessor's written certification that the lessor will not claim a credit under this Chapter with respect to the equipment.

	

	
	
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SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2023.