Use the NC-478 series to calculate and report tax credits that are limited to 50% of tax less the sum of all other tax credits claimed. The NC-478 letter series forms are used to calculate the specific credits available without regard to the 50% limitation and are designed to report a taxpayer’s activity at an establishment or at a county level. If a taxpayer engages in an activity that qualifies for a credit at more than one establishment or county, a separate form must be filed for each credit. For additional information regarding the calculation of tax credits for multiple establishments or multiple counties, see the specific instructions for each credit.
Listed below are the tax credits that are subject to the 50% of tax limitation and the applicable NC-478 series form on which the credit, or any unused portion of the credit, is claimed:
Article 3A Credits - Tax Incentives for New and Expanding Businesses
• Investing in Machinery and Equipment (NC-478)
• Investing in Central Office or Aircraft Facility Property (NC-478)
• Research & Development (NC-478) • Technology Commercialization (NC-478)
• Substantial Investment in Other Real Property (NC-478)
Article 3B Credits - Business and Energy Tax Credits
• Investing in Renewable Energy Property (NC-478G)
• Renewable Fuel Facility (NC-478)
• Biodiesel Producers (NC-478)
• Work Opportunity (NC-478)
• Donating to a Nonprofit Organization for Investing in Renewable Energy Property (NC-478)
• Renewable Energy Property Facility (NC-478)
Article 3F Credits - Research and Development
• N.C. Research and Development (NC-478)
• Interactive Digital Media (NC-478)
Article 3J Credits - Tax Credits for Growing Businesses
• Creating Jobs (NC-478)
• Investing in Business Property (NC-478)
• Investing in Real Property (NC-478L)
Article 3K Credits - Incentives for Railroad Intermodal Facilities
• Constructing a Railroad Intermodal Facility (NC-478)
Other Credits Subject to the 50% of Tax Limit
• Use of North Carolina Ports (NC-478)
• Manufacturing Cigarettes for Export (NC-478)
• Manufacturing Cigarettes for Export While Increasing Employment (NC-478)
All of the tax credits listed are available to individuals, partnerships, estates, trusts, and corporations except the tax credit for manufacturing cigarettes for export, and the tax credit for manufacturing cigarettes for export while increasing employment, which are available only to corporations. Insurance companies with a gross premiums tax liability can claim any of the Article 3A credits or the Article 3J credits.