Tax Credits Offer Another Incentive To Go Solar To encourage North Carolinians to use renewable energies, the General Assembly revised the existing provisions for renewable energy tax credits in 1999. The new law could mean credits of hundreds or thousands of dollars for many taxpayers. There are a few stipulations, of course. For example, the system you install must conform to all state and local codes, and it is not eligible for the credit until the year when it is installed and fully functional. If you replace parts and increase the capacity of an existing system, you can also claim a percentage of the replacement equipment as a credit, but routine repairs are not eligible for the credit.
Renewable energy is energy derived from solar radiation, biomass, moving water, and wind.
Systems that are used to heat or cool buildings, heat water, or generate electricity are eligible for the credit. Eligible costs include equipment, design, construction, and installation costs. In some cases, the unused credit may be carried over for the next five succeeding years. Among the many ways to use renewable energy, some applications are easier than others. You can produce your own electricity with photovoltaic cells, wind power or water power.