§ 105-151.13. Credit for conservation tillage equipment. - North Carolina Statutes

§105‑151.13.  Credit for conservation tillage equipment.

(a)        A taxpayer whopurchases conservation tillage equipment for use in a farming business,including tree farming, shall be allowed as a credit against the tax imposed bythis Part an amount equal to twenty‑five percent (25%) of the cost of theequipment paid during the taxable year. This credit may not exceed two thousandfive hundred dollars ($2,500) for any taxable year. The credit may be claimedonly by the first purchaser of the equipment and may not be claimed by a personwho purchases the equipment for resale or for use outside this State. Thiscredit may not exceed the amount of tax imposed by this Part for the taxableyear reduced by the sum of all credits allowable, except tax payments made byor on behalf of the taxpayer. If the credit allowed by this section exceeds thetax imposed under this Part, the excess may be carried forward for the nextsucceeding five years. The basis in any equipment for which a credit is allowedunder this section shall be reduced by the amount of the credit allowable.

(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".

(c)        In the case ofconservation tillage equipment owned jointly by a husband and wife, if both spousesare required to file North Carolina income tax returns, the credit allowed bythis section may be claimed only if the spouses file a joint return. If onlyone spouse is required to file a North Carolina income tax return, that spousemay claim the credit allowed by this section on a separate return. (1983(Reg. Sess., 1984), c. 969, s. 2; 1989, c. 728, s. 1.18; 1991 (Reg. Sess.,1992), c. 930, s. 22; 1998‑98, s. 100.)