Donors may be eligible for two types of savings on their income taxes: a Federal charitable donation deduction (to Community UCC) and a NC tax credit up to 35% of the value of the donation. If you are able to take both the itemized deduction and the credit, you will receive back in tax benefits about half of your donation.
Federal income tax benefits
The Federal charitable donation deduction is taken on your Form 1040, Schedule A in the year in which you make the donation (2015). You will be making a donation to Community United Church of Christ which is a 501 (c)(3) organization; we will provide you with a letter stating that no goods or services were received in exchange for your gift. Future community solar array projects can take advantage of this deduction. Remember, you must itemize your deductions to benefit on your federal income taxes. If you choose to use the standard deduction when calculating your taxes, your donation to solar will not benefit you on your federal taxes.
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| One reason Skip Stoddard supports the CUCC Solar Array Project is "to honor my brother, who pushed for renewable energy through his pioneering work in wind turbine design." Skip is a member of CUCC's Justice in a Changing Climate Task Force. |
North Carolina income tax benefits
To earn a NC Renewable Energy Property tax credit, the solar array must be commissioned by December 31, 2015. Our goal is to have the array commissioned before the deadline. Future projects commissioned after December 31, 2015, will not be eligible for the NC Renewable Energy Property tax credit.
There is no lifetime limit on the NC tax credit for solar generation, but there is a yearly limit which is based on how much tax you are paying that year. Fortunately, you can divide your credit over five years.
Information about the NC tax credits: Guidelines for Determining The Tax Credit for Investing in Renewable Energy Property
On your North Carolina income taxes, you may choose to apply your gift toward a charitable deduction instead of a tax credit. Remember that you can't do both on your North Carolina income taxes.
Consult your tax advisor on whether these tax benefits are relevant for you.
Remember, we are not tax experts. Here is an example that helped us understand the NC Renewable Energy Property tax credit.
As of 5PM, April 15, all donations to the CUCC Solar Array Project seed the solar arrays on other nonprofits. Seed money is not eligible for NC tax credits. We are in touch with several groups who are deciding whether to go solar. We will post their contact information here so you can make donations directly to them if you want the NC tax credit.
