§ 105-129.16D. (Repealed effective for facilities placed in service on or after January 1, 2011) Credit for constructing renewable fuel facilities. - North Carolina Statutes

§ 105‑129.16D. (Repealed effective for facilities placed in service on or after January 1,2011) Credit for constructing renewable fuel facilities.

(a)        Dispensing Credit.– A taxpayer that constructs and installs and places in service in this State aqualified commercial facility for dispensing renewable fuel is allowed a creditequal to fifteen percent (15%) of the cost to the taxpayer of constructing andinstalling the part of the dispensing facility, including pumps, storage tanks,and related equipment, that is directly and exclusively used for dispensing orstoring renewable fuel. A facility is qualified if the equipment used to storeor dispense renewable fuel is labeled for this purpose and clearly identifiedas associated with renewable fuel.

The entire credit may not betaken for the taxable year in which the facility is placed in service but mustbe taken in three equal annual installments beginning with the taxable year inwhich the facility is placed in service. If, in one of the years in which theinstallment of a credit accrues, the portion of the facility directly andexclusively used for dispensing or storing renewable fuel is disposed of ortaken out of service, the credit expires and the taxpayer may not take anyremaining installment of the credit. The taxpayer may, however, take theportion of an installment that accrued in a previous year and was carriedforward to the extent permitted under G.S. 105‑129.17.

(b)        Production Credit.– A taxpayer that constructs and places in service in this State a commercialfacility for processing renewable fuel is allowed a credit equal to twenty‑fivepercent (25%) of the cost to the taxpayer of constructing and equipping thefacility. The entire credit may not be taken for the taxable year in which thefacility is placed in service but must be taken in seven equal annualinstallments beginning with the taxable year in which the facility is placed inservice. 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 ortaken out of service, the credit expires and the taxpayer may not take anyremaining installment of the credit. The taxpayer may, however, take theportion of an installment that accrued in a previous year and was carriedforward to the extent permitted under G.S. 105‑129.17.

(b1)      AlternativeProduction Credit. – In lieu of the credit allowed under subsection (b) of thissection, a taxpayer that constructs and places in service in this State threeor more commercial facilities for processing renewable fuel and that invests atotal amount of at least four hundred million dollars ($400,000,000) in thefacilities is allowed a credit equal to thirty‑five percent (35%) of thecost to the taxpayer of constructing and equipping the facilities. In order toclaim the credit, the taxpayer must obtain a written determination from theSecretary of Commerce that the taxpayer is expected to invest within a five‑yearperiod a total amount of at least four hundred million dollars ($400,000,000)in three or more facilities. The credit must be taken in seven equal annualinstallments beginning with the taxable year in which the first facility isplaced in service. If, in one of the years in which the installment of creditaccrues, a facility with respect to which the credit was claimed is disposed ofor taken out of service and the investment requirements of this subsection areno longer satisfied, the credit expires and the taxpayer may take any remaininginstallment of the credit only to the extent allowed under subsection (b) ofthis section. The taxpayer may, however, take the portion of an installmentunder this subsection that accrued in a previous year and was carried forwardto the extent permitted under G.S. 105‑129.17. Notwithstanding theprovisions of G.S. 105‑129.17, a taxpayer may carry forward unusedportions of the credit allowed under this subsection for the succeeding 10years.

If a taxpayer that claimed acredit under this subsection fails to meet the requirements of this subsectionbut meets the requirements of subsection (b) of this section, the taxpayerforfeits the difference between the alternative credit claimed under thissubsection and the credit allowed under subsection (b) of this section. Ataxpayer that forfeits part of the alternative credit under this subsection isliable for the additional taxes avoided plus interest at the rate establishedunder G.S. 105‑241.1(i), computed from the date the additional taxeswould have been due if the credit had not been allowed. The additional taxesand interest are due 30 days after the date the credit is forfeited. A taxpayerthat fails to pay the additional taxes and interest by the due date is subjectto penalties provided in G.S. 105‑236.

(c)        No Double Credit. –A taxpayer may not claim the credits allowed under subsections (b) and (b1) ofthis section with respect to the same facility. A taxpayer that claims anyother credit allowed under this Chapter with respect to the costs ofconstructing and installing a facility may not take the credit allowed in thissection with respect to the same costs.

(d)        Sunset. – Thissection is repealed effective for facilities placed in service on or afterJanuary 1, 2011. (2004‑153,s. 2; 2006‑66, s. 24.7(a); 2006‑259, s. 19.5(a); 2007‑323, s.31.9(a).)