Solar Power Tax Credits and Incentives

Today’s Solar Economics – Your System Pays for Itself the Day it’s Installed!

North Carolina offers a tax credit equal to 35% of the cost of eligible renewable energy property constructed, purchased, or leased by a taxpayer and placed into service in North Carolina during the taxable year. The credit is subject to various ceilings depending on business sector and the type of renewable-energy system.

Additionally, Federal Business Incentives for solar power are available to businesses that invest in or purchase qualified solar power equipment.

Tax Credits & Incentives

Federal – Business Energy Tax Credit Policy Act 2005
• 30% tax credit of solar equipment.
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• Credit is taken in first year or carried over.
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• No maximum specified for solar technologies.

NC Renewable Energy Corporate Tax Credit
• 35% of project with a cap of $2.5 million per installation.
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• Credit is taken in five equal yearly installments.
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• Allowable credit may not exceed 50% of that year’s taxpayer liability.

Accelerated 5 Year Depreciation – MACRS
• Recover investments in Photovoltaic Solar System (including underlying roof system) through
depreciation deductions in five years.