U.S. Department of Energy - Energy Efficiency and Renewable Energy
Alternative Fuels and Advanced Vehicles Data Center
North Carolina Incentives and Laws
Alternative Fuel Production Tax Credit
A tax credit is available for the processing of biodiesel, 100% ethanol, or ethanol/gasoline blends consisting of at least 70% ethanol. The credit is equal to 25% of the cost of constructing and equipping the facility and a facility must be placed in service before January 1, 2011. The credit must be taken in seven equal annual installments beginning with the taxable year in which the facility is placed in service.
In lieu of the above credit, a taxpayer that constructs and places into service, in North Carolina, three or more commercial facilities for processing renewable fuel and invests a total amount of at least $400,000,000 in the facilities is allowed a credit equal to 35% of the cost to the taxpayer of constructing and equipping the facilities. To claim the credit, the taxpayer must obtain a written determination from the Secretary of Commerce that the taxpayer is expected to invest at least $400,000,000 in three or more facilities within a five-year period. Facilities must be placed in service before January 1, 2011.
(Reference North Carolina General Statutes 105-129.16D)