This is it.
As most of you are aware H.4478 got a first reading in the Senate finance committee today.
This bill has a solar tax credit.
If you want a SOLAR INDUSTRY in this state NOW IS THE TIME TO ACT.
Please call/email/meet in person each of the senate finance committee members listed below. Ask them to amend the bill to include the following language, we can build an industry, stop fighting over scraps and help the country move towards a low carbon, job creating, New Energy Economy.
1. *Critical* - Property Tax Abatement - In NC and most other states
There is typically a business personal property tax abatement ranging from 85% to 100% of system basis as listed with the state Department of Revenue. Since these systems as have very high cost or tax values relative to the cash flows generated, un-abated business personal property taxes will significantly impair the economics of solar projects.
2. Give the ability to sell the tax credits, (bifurcation) said another way, you want to be able to strip the credit off the asset or be able to transfer the credit to a SC only taxpayer without any direct linkage to who utilizes the Federal ITC or Depreciation. Ensuring this flexibility with the incentive will dramatically increase the number of potential solar project investors who can utilize the SC State tax credits, be revenue neutral for the state for a viable project and directly result in an increase in the number of projects developed.
3. Explicitly state that the Federal 1603 grant is not included in taxable income. This should be amended so the proposed language reduces the credit to 85 percent if you take the 1603 grant. This item has prevented utilities from exercising cost controls when implementing solar projects, which severally hampers real growth for the industry.
None of these issues have been addressed so far and will come up as we develop commercial projects. Once this is passed we can address the shortfalls in the residential bill by supporting S.1208 and H.4703.
This is a critical bill for the state and the region. Either SC gets serious about solar or we lose out on a $15 billion dollar industry that is growing at 30% a year.
Leatherman, Hugh K. , Sr., Chm.
Land, John C. III
Setzler, Nikki G.
Leventis, Phil P.
Peeler, Harvey S. , Jr.
Thomas, David L.
McGill, J. Yancey
Courson, John E.
Matthews, John W. , Jr.
O'Dell, William H.
Reese, Glenn G.
Hayes, Robert W. , Jr.
Ryberg, W. Greg
Alexander, Thomas C.
Grooms, Lawrence K. "Larry"
Pinckney, Clementa C.
Fair, Michael L.
Verdin, Daniel B. "Danny" III
Cromer, Ronnie W.
Bryant, Kevin L.
President Solar Business Alliance
Board SC Small Business Chamber