Geothermal Tax Credits for Chapel Hill, Carrboro, Pittsboro, Hillsborough and Durham- North Carolina and Federal Tax Incentives
In addition to the federal tax credit discussed below, North Carolina now offers a tax credit which is good up to 35 percent of the cost of a geothermal project on their residential property up to maximum on $8,400 or up to $2.5 million for commercial applications. This credit can be use for all project related expenses including the cost of the cost of the equipment and associated design; construction costs; and installation costs less any discounts, rebates, advertising, installation-assistance credits, name-referral allowances or other similar reductions provided by public funds. SB 388 of 2010 clarified that federal grants made available by Section 1603 of the American Recovery and Reinvestment Tax Act of 2009 do not constitute public funds.
This tax credit can only amount to 50% of a taxpayers state tax for the year minus the amount of any other state credits. So for example combining geothermal and solar would only allow deduction. If some of the credit remains it may be spread out and carried over for up to the next five years.
Federal Tax Credit
In addition to the 35% available from North Carolina the Federal government provides a 30% tax incentive with no upper limit for geothermal products. This rebate can be used in conjunction with the state rebate. This tax rebate is good unit December 31, 2016 and is usable for both principal and secondary residences, though not rentals.
Please call us is you would like to know more about whether geothermal might be a good solution for your home. 919-929-9886