DENR Report: Government Policies Guarantee Return Of 'Almost All' Investment In Solar | Eastern NC Now

In March 2015, the North Carolina Department of Environment and Natural Resources published "The Energy Report: A Snapshot of North Carolina's Energy Portfolio Seven Years After Session Law 2007-397."

ENCNow
    Publisher's note: The author of this post is Jon Sanders, who is Director of Regulatory Studies for the John Locke Foundation.

    In March 2015, the North Carolina Department of Environment and Natural Resources published "The Energy Report: A Snapshot of North Carolina's Energy Portfolio Seven Years After Session Law 2007-397."

    The report is well worth digesting, especially given the ongoing debate in North Carolina over state subsidies, incentives, tax credits, and the renewable energy portfolio standard (REPS) purchase mandate for renewable energy, partiucularly solar energy.

    Take this selection, for example, on the delightful combination of federal and state investment tax credits and accelerated depreciation schedules for investing in solar:

    The 35 percent ITC [investment tax credit] granted under S.L. 2005-413 has been one of the key drivers in renewable energy development in the state and has helped North Carolina to become third in the nation in solar installations. Solar energy investors with sufficient tax liability may combine the 35 percent state ITC with the 30 percent federal ITC and the bonus accelerated depreciation schedule to return almost all of their investment within six years and may receive 57.8 percent of their investment back through tax credits and depreciation deductions within 12 months of placing into service. For an investor subject to a 35 percent federal tax rate and a 5 percent state tax rate, the previous page demonstrates how much of the solar energy investment is returned each year through tax incentives.

    The chart from the previous page that shows the cumulative total of how much solar energy investment is returned per year through those six years is available here.
Go Back


Leave a Guest Comment

Your Name or Alias
Your Email Address ( your email address will not be published )
Enter Your Comment ( text only please )




Tillis Honors Fallen Heroes On Memorial Day John Locke Foundation Guest Editorial, Editorials, Op-Ed & Politics House Touts Some Good Education Ideas


HbAD0

Latest Op-Ed & Politics


HbAD1

“We have video showing piles of cash being given to a D.C. councilmember as part of a $156,000 bribe,” said Jeanine Pirro before vowing to retry.
while French migrant rioters says they do no intend to stop
two ex-teachers could swing board to the left and they are both running as "Republicans"

HbAD2

Tillis is still at it. Sadly the lame stream is eating this up

HbAD3

 
 
Back to Top