§ 105-130.36. Credit for conservation tillage equipment. - North Carolina Statutes

§105‑130.36.  Credit for conservation tillage equipment.

(a)        Any corporationthat purchases conservation tillage equipment for use in a farming business,including tree farming, shall be allowed a credit against the tax imposed bythis Part equal to twenty‑five percent (25%) of the cost of the equipmentpaid during the taxable year. This credit may not exceed two thousand fivehundred dollars ($2,500) for any taxable year for any taxpayer. The credit maybe claimed only by the first purchaser of the equipment and may not be claimedby a corporation that purchases the equipment for resale or for use outsidethis State. This credit may not exceed the amount of tax imposed by this Partfor the taxable year reduced by the sum of all credits allowable, except taxpayments made by or on behalf of the taxpayer. If the credit allowed by thissection exceeds the tax imposed under this Part, the excess may be carriedforward for the succeeding five years. The basis in any equipment for which acredit is allowed under this section shall be reduced by the amount of creditallowable.

(b)        As used in thissection, "conservation tillage equipment" means:

(1)        A planter such as aplanter commonly known as a "no‑till" planter designed tominimize disturbance of the soil in planting crops or trees, includingequipment that may be attached to equipment already owned by the taxpayer; or,

(2)        Equipment designedto minimize disturbance of the soil in reforestation site preparation,including equipment that may be attached to equipment already owned by thetaxpayer; provided, however, this shall include only those items of equipmentgenerally known as a "KG‑Blade", a "drum‑chopper",or a "V‑Blade". (1983 (Reg. Sess., 1984), c.969, s. 1; 1998‑98, s. 88.)