GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2005

S                                                                                                                                                     1

SENATE BILL 190*

 

 

 

 

Short Title:     Income Tax Credit – Energy Efficient Homes.

(Public)

Sponsors:

Senators Horton,  Kinnaird; and Brock.

Referred to:

Finance.

February 23, 2005

A BILL TO BE ENTITLED

AN ACT to provide an income tax credit for builders and purchasers of energy‑efficient homes.

The General Assembly of North Carolina enacts:

SECTION 1.  Part 1 of Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read:

"§ 105‑130.47.  Construction or improvement of energy‑efficient home.

(a)       Definitions. – The following definitions apply in this section:

(1)       Energy‑efficient home. – A one‑ or two‑family home that is a federally qualified energy‑efficient home or a State‑certified energy‑efficient home.

(2)       Federally qualified energy‑efficient home. – A residence qualified under the ENERGY STAR Program administered by the United States Environmental Protection Agency.

(3)       State‑certified energy‑efficient home. – A residence certified under the NC HealthyBuilt Homes Program administered by the North Carolina Solar Center, the State Energy Office, and the North Carolina Department of Administration.

(b)       Credit. – A taxpayer that builds or manufactures an energy‑efficient home or that improves an existing structure so that it becomes an energy‑efficient home is allowed a credit against the taxes imposed by this Part. In order to claim a credit under this section, the taxpayer must include with the tax return documentation that the property with respect to which a credit is claimed is an energy‑efficient home. The amount of the credit is as follows:

(1)       For a taxpayer that builds or manufactures a new federally qualified energy‑efficient home, the credit is five hundred dollars ($500.00).

(2)       For a taxpayer that improves an existing structure so that it becomes a federally qualified energy‑efficient home, the credit is equal to the cost of improvements not to exceed one thousand dollars ($1,000).

(3)       For a taxpayer that builds or manufactures a new State‑certified energy‑efficient home, the credit is one thousand five hundred dollars ($1,500).

(4)       For a taxpayer that improves an existing structure so that it becomes a State‑certified energy‑efficient home, the credit is equal to the cost of improvements not to exceed two thousand dollars ($2,000).

(c)       Cap. – The credit allowed under this section may not exceed the amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowable, except tax payments made by or on behalf of the taxpayer. Any unused portion of a credit under this section may be carried forward for the succeeding five years.

(d)       Sunset. – This section is repealed effective for taxable years beginning on or after January 1, 2010."

SECTION 2.  Part 2 of Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read:

"§ 105‑151.29.  Construction or improvement of energy‑efficient home.

(a)       Definitions. – The following definitions apply in this section:

(1)       Energy‑efficient home. – A one‑ or two‑family home that is a federally qualified energy‑efficient home or a State‑certified energy‑efficient home.

(2)       Federally qualified energy‑efficient home. – A residence qualified under the ENERGY STAR Program administered by the United States Environmental Protection Agency.

(3)       State‑certified energy‑efficient home. – A residence certified under the NC HealthyBuilt Homes Program administered by the North Carolina Solar Center, the State Energy Office, and the North Carolina Department of Administration.

(b)       Credit. – A taxpayer that builds or manufactures an energy‑efficient home or that improves an existing structure so that it becomes an energy‑efficient home is allowed a credit against the taxes imposed by this Part. In order to claim a credit under this section, the taxpayer must include with the tax return documentation that the property with respect to which a credit is claimed is an energy‑efficient home. The amount of the credit is as follows:

(1)       For a taxpayer that builds or manufactures a new federally qualified energy‑efficient home, the credit is five hundred dollars ($500.00).

(2)       For a taxpayer that improves an existing structure so that it becomes a federally qualified energy‑efficient home, the credit is equal to the cost of improvements not to exceed one thousand dollars ($1,000).

(3)       For a taxpayer that builds or manufactures a new State‑certified energy‑efficient home, the credit is one thousand five hundred dollars ($1,500).

(4)       For a taxpayer that improves an existing structure so that it becomes a State‑certified energy‑efficient home, the credit is equal to the cost of improvements not to exceed two thousand dollars ($2,000).

(c)       Cap. – The credit allowed under this section may not exceed the amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowable, except tax payments made by or on behalf of the taxpayer. Any unused portion of a credit under this section may be carried forward for the succeeding five years.

(d)       Sunset. – This section is repealed effective for taxable years beginning on or after January 1, 2010."

SECTION 3.  Part 2 of Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read:

"§ 105‑151.30.  Purchase of energy‑efficient home.

(a)       Definitions. – The following definitions apply in this section:

(1)       Energy‑efficient home. – A one‑ or two‑family home that is a federally qualified energy‑efficient home or a State‑certified energy‑efficient home.

(2)       Federally qualified energy‑efficient home. – A residence qualified under the ENERGY STAR Program administered by the United States Environmental Protection Agency.

(3)       State‑certified energy‑efficient home. – A residence certified under the NC HealthyBuilt Homes Program administered by the North Carolina Solar Center, the State Energy Office, and the North Carolina Department of Administration.

(b)       Credit. – A taxpayer that purchases an energy‑efficient home is allowed a credit against the taxes imposed by this Part in the amount of five hundred dollars ($500.00).

(c)       Cap. – The credit allowed under this section may not exceed the amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowable, except tax payments made by or on behalf of the taxpayer. Any unused portion of a credit under this section may be carried forward for the succeeding five years.

(d)       No Double Benefit. – A taxpayer that claims a credit under this section may not also claim a credit under G.S. 105‑151.29 with respect to the same property.

(e)       Sunset. – This section is repealed effective for taxable years beginning on or after January 1, 2010."

SECTION 4.  This act is effective for taxable years beginning on or after January 1, 2006, and applies to homes that receive the qualification or certification on or after that date.