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Hi - I need some info from a CPA or who knows the NC tax code.
I just bought a lot near Black Mountain and intend to build a house in 1-3 years. I'm considering installing a geothermal HVAC system when the house is built. I know I can get a 30% tax credit from the Feds and a 35% tax credit from NC. I expect the system to cost between $25-40K depending on the tonnage I need (likely between 4-5 tons). If I recall correctly, in NC the credit can't be larger than 1/2 the total tax bill but any remainder can also be carried forward until it's used up.
I don't live in NC but plan to move there in 1-3 years. My question is about the requirements for taking the NC tax credit. I know I have to file a NC tax return so I have to be a NC resident. Would I qualify for a partial year tax credit? If so I assume it would be best to move as early in the year as possible? If I"m a partial year resident can I still carry the remainder forward? Also I think the code talks about 'the year it's put in service". What does that mean - when it's installed, or paid for or when I as owner start to use it?
Without the NC tax credit, the geothermal system doesn't make sense. With the credit it becomes almost the same cost or a bit more than a normal heat pump HVAC system. Even if it costs a bit more, the electricity savings over the 30 year lifetime will likely pay for it.
Very good question, I am in the same boat. I plan on moving in 2-4 years and want to use geothermal, I have used GSHP since 1986 in my current Michigan home and been very happy with it and would like to use one in Western NC once I'm able to make the move.
Your best bet is to call and ask a tax accountant not a CPA. Not all CPA's are tax accountants....I wouldn't go by what someone on a forum says. You could end up completely screwed in the end and what would you say to the nice fellow from the tax department..."hey buddy you're wrong....just look on the City Data forum!" LOL
Hello all,
I am an IGSHPA member and accredited driller. We have done and are currently doing closed loop and open loop gethermal jobs in the Greater Charlotte area and beyond. I would be happy to help answer any question to the best of my knowledge.
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