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General Information for Claiming Tax Credits - Form D-400TC

Credit for Disabled Taxpayer, Dependent, or Spouse

If you claimed an income tax credit on your federal tax return for being permanently and totally disabled, you are entitled to a tax credit on your North

Carolina return equal to one-third (1/3) of the amount of the federal tax credit. Although the federal tax credit is also allowed for being age 65 or older,

no portion of the tax credit is allowed on the North Carolina return for being age 65 or older.

You may also be entitled to a tax credit if a dependent or spouse for whom you are allowed an exemption on your federal return is permanently and

totally disabled. To qualify for the credit, a statement from a physician or local health department must be attached to your return certifying that the

dependent was unable to engage in any substantial gainful activity by reason of a physical or mental impairment that can be expected to result in death

or that has lasted or can be expected to last for a continuous period of not less than 12 months.

A nonresident or part-year resident is allowed the tax credit in the proportion that federal taxable income (as adjusted) is taxable to North Carolina.

The allowable credit is determined by completing Form D-429, Worksheet for Determining the Credit for the Disabled Taxpayer, Dependent

or Spouse. The credit should be shown on Form D-400TC, Line 23. You may contact the Department for Form D-429 or you may download it from

our website at

Credit for Certain Real Property Donations

A tax credit is allowed for a qualified donation of an interest in real property located in North Carolina that is useful for public beach access or use,

public access to public waters or trails, fish and wildlife conservation, or other similar land conservation purposes. The credit is 25% of the fair market

value of the donated property, but may not exceed $250,000. (With respect to a credit claimed by a partnership, the $250,000 limitation applies to each

partner instead of to the partnership as a whole.) To be eligible for the credit, the interest in the property must be donated in perpetuity to and accepted

by the State, a local government, or a body that is both organized to receive and administer lands for conservation purposes and qualified to receive

charitable contributions under the Internal Revenue Code. To support the credit, a certification by the Department of Environment and Natural

Resources that the donated property is suitable for one or more of the valid public benefits described above must be attached to your return.

The credit may not exceed the tax liability for the tax year, reduced by other tax credits. Any unused portion of the credit may be carried

forward for the next succeeding five years.

Credit for Rehabilitating an Historic Structure

Income-producing – Generally, a taxpayer who is allowed a federal income tax credit under section 47 of the Internal Revenue Code for making

rehabilitation expenditures for a certified historic structure located in North Carolina is allowed a credit equal to 20% of the expenditures that qualify for the

federal credit.

Nonincome-producing – Generally, a taxpayer who is not allowed a federal income tax credit under section 47 of the Internal Revenue Code

and who makes rehabilitation expenses for a State-certified historic structure located in North Carolina is allowed a credit equal to 30% of the

rehabilitation expenses. To qualify for the credit, the rehabilitation expenses must exceed $25,000 within a 24-month period. You must attach

to the return a copy of the certification obtained from the State Historic Preservation Officer verifying that the historic structure has been

rehabilitated in accordance with the Secretary of the Interior’s Standards for Rehabilitation.

Important: The credit for rehabilitating an historic structure must be claimed in five equal installments beginning with the taxable year in which

the property is placed in service. Any unused portion of the credit may be carried forward for the succeeding five years.

Other Income Tax Credits

(Visit our website at for additional information on the following tax credits)

Credit for property taxes paid by a farmer on farm machinery

Credit for constructing handicapped dwelling units

Credit for donating unharvested gleaned crops

Credit for the purchase of certain conservation tillage equipment

Credit for constructing a poultry composting facility

Business Incentive and Energy Tax Credits

(Limited to 50% of Tax Liability)

The following tax credits are available as incentives to new and expanding businesses or for investing in renewable energy property or low-

income housing. If you believe you are entitled to one or more of the tax credits, contact the Department for Form NC-478 Series or you may

download the forms from our website at Form NC-478 Series is used to calculate and report tax credits that are limited

to 50% of your tax less the sum of all other tax credits that you claim. Complete the form and attach it to the front of your income tax return.

Credit for creating jobs

Credit for development zone projects

Credit for investing in machinery and equipment

Credit for nonhazardous dry-cleaning equipment

Credit for research and development

Credit for investing in low-income housing

Credit for worker training

Credit for use of North Carolina ports

Credit for investing in renewable energy property

Credit for investing in central office or aircraft facility property

Credit for technology commercialization

Important: The tax credits described in these instructions may not exceed the tax liability for the tax year, reduced by other tax credits.

Reminders

Do not submit photocopies of the return. Submit original forms only. Do not use any prior year forms to file a current year return.

Double-check your figures, including your social security number. Accuracy speeds processing of your tax return.

Claim the same filing status you claimed on your federal return. (Nonresidents see instructions on page 5.) If you do not fill in the applicable circle

to indicate your filing status, processing of your return will be delayed.

Sign and date your return on Page 4. If you file a joint tax return, both you and your spouse must sign the return. Staple the originals or copies of

the original State wage and tax statements in the top left-hand corner of the return.

You must include a copy of your federal return with your North Carolina return unless your federal return reflects a North Carolina address or you

file electronically.

If you owe additional tax and you received a pre-addressed income tax booklet, use the payment voucher (Form D-400V) included with the booklet

to make your payment. Do not use Form D-400V if any of the preprinted information does not match what you entered on your return. Do not staple,

tape, or otherwise attach your payment or voucher to your return or to each other. Instead, just put them loose in the envelope. In lieu of using the

payment voucher, you may pay your tax liability online by bank draft, Visa, or MasterCard. Visit our website for details.

Form D-400tc - General Information For Claiming Tax Credits, Form D-429 - Worksheet For Determining The Credit For The Disabled Taxpayer Page 3

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