§ 105-129.27. Credit for investing in large or major recycling facility. - North Carolina Statutes

§ 105‑129.27.  Creditfor investing in large or major recycling facility.

(a)        Credit. – An ownerthat purchases or leases machinery and equipment for a major recycling facilityin this State during the taxable year is allowed a credit equal to fifty percent(50%) of the amount payable by the owner during the taxable year to purchase orlease the machinery and equipment. An owner that purchases or leases machineryand equipment for a large recycling facility in this State during the taxableyear is allowed a credit equal to twenty percent (20%) of the amount payable bythe owner during the taxable year to purchase or lease the machinery andequipment.

(b)        Taxes Credited. – Thecredit provided in this section is allowed against the franchise tax levied inArticle 3 of this Chapter and the income tax levied in Part 1 of Article 4 ofthis Chapter. Any other nonrefundable credits allowed the owner are subtractedbefore the credit allowed by this section.

(c)        Carryforwards. – Thecredit provided in this section may not exceed the amount of tax against whichit is claimed for the taxable year, reduced by the sum of all other creditsallowed against that tax, except tax payments made by or on behalf of theowner. Any unused portion of the credit may be carried forward for thesucceeding 25 years.

(d)        Change in Ownershipof Facility. – The sale, merger, consolidation, conversion, acquisition, orbankruptcy of a recycling facility, or any transaction by which the facility isreformulated as another business, does not create new eligibility in asucceeding owner with respect to a credit for which the predecessor was noteligible under this section. A successor business may, however, take anycarried‑over portion of a credit that its predecessor could have taken ifit had a tax liability.

(e)        Forfeiture. – Ifany machinery or equipment for which a credit was allowed under this section isnot placed in service within 30 months after the credit was allowed, the creditis forfeited. A taxpayer that forfeits a credit under this section is liablefor all past taxes avoided as a result of the credit plus interest at the rateestablished under G.S. 105‑241.21, computed from the date the taxes wouldhave been due if the credit had not been allowed. The past taxes and interestare due 30 days after the date the credit is forfeited; a taxpayer that failsto pay the past taxes and interest by the due date is subject to the penaltiesprovided in G.S. 105‑236.

(f)         No Double Credit.– A recycling facility that is eligible for the credit allowed in this sectionis not allowed the credit for investing in machinery and equipment provided inG.S. 105‑129.9 or G.S. 105‑129.88.  (1998‑55, s. 12; 1999‑369, s. 5.3; 2007‑491,s. 44(1)a; 2009‑445, s. 3(a).)