§ 105-151.21. Credit for property taxes paid on farm machinery. - North Carolina Statutes

§ 105‑151.21.  Creditfor property taxes paid on farm machinery.

(a)        Credit. – Anindividual engaged in the business of farming is allowed a credit against thetax imposed by this Part equal to the amount of property taxes the individualpaid at par during the taxable year on farm machinery and on attachments andrepair parts for farm machinery. In addition, an individual shareholder of an SCorporation engaged in the business of farming is allowed a credit against thetax imposed by this Part equal to the shareholder's pro rata share of theamount of property taxes the S Corporation paid at par during the taxable yearon farm machinery and on attachments and repair parts for farm machinery. Thetotal credit allowed under this section may not exceed one thousand dollars($1,000) for the taxable year and may not exceed the amount of tax imposed bythis Part for the taxable year reduced by the sum of all credits allowable,except payments of tax made by or on behalf of the taxpayer. To claim thecredit, the taxpayer shall attach to the return a copy of the tax receipt forthe property taxes for which credit is claimed. The receipt must indicate thatthe taxes have been paid and the amount and date of the payment.

(b)        Definitions. – Thefollowing definitions apply in this section:

(1)        Farm machinery. –Machinery exempt from State sales tax under G.S. 105‑164.13(1)b.

(2)        Property taxes. –The principal amount of taxes levied and assessed by a taxing unit underSubchapter II of this Chapter. The term does not include costs, penalties,interest, or other charges that may be added to the principal amount.

(3)        Taxing unit. –Defined in G.S. 105‑273.

(c)        Adjustment. If ataxing unit gives a taxpayer a credit or refund for any of the property taxesfor which the taxpayer claimed a credit under this section, the taxpayer shallnotify the Secretary within 90 days. The Secretary shall then recompute thecredit allowed under this section and make any resulting adjustment of incometax for the taxable year for which the credit was claimed. (1985, c. 656, s. 13(3);1987, c. 804, s. 6; 1991, c. 45, s. 14(a); 1998‑98, s. 103; 2001‑414,s. 11; 2005‑276, s. 33.25.)