§ 105-129.12. (See Editor's note for repeal) Credit for investing in central office or aircraft facility property.
§ 105‑129.12. (SeeEditor's note for repeal) Credit for investing in central office or aircraftfacility property.
(a) Credit. If ataxpayer that has purchased or leased real property in this State begins to usethe property as a central office or aircraft facility during the taxable year,the taxpayer is allowed a credit equal to seven percent (7%) of the eligibleinvestment amount. The eligible investment amount is the lesser of (i) the costof the property and (ii) the amount by which the cost of all of the propertythe taxpayer is using in this State as central office or aircraft facilities onthe last day of the taxable year exceeds the cost of all of the property thetaxpayer was using in this State as central office or aircraft facilities onthe last day of the base year. The base year is that year, of the threeimmediately preceding taxable years, in which the taxpayer was using the mostproperty in this State as central office or aircraft facilities. In the case ofproperty that is leased, the cost of the property is not determined as providedin G.S. 105‑129.2 but is considered to be the taxpayer's lease paymentsover a seven‑year period, plus any expenditures made by the taxpayer toimprove the property before it is used as the taxpayer's central office oraircraft facility if the expenditures are not reimbursed or credited by thelessor. The maximum credit allowed a taxpayer under this section for propertyused as a central office or aircraft facility is five hundred thousand dollars($500,000). The entire credit may not be taken for the taxable year in whichthe property is first used as a central office or aircraft facility but shallbe taken in equal installments over the seven years following the taxable yearin which the property is first used as a central office or aircraft facility.The basis in any real property for which a credit is allowed under this sectionshall be reduced by the amount of credit allowable.
(b) Mixed Use Property. If the taxpayer uses only part of the property as the taxpayer's centraloffice or aircraft facility, the amount of the credit allowed under thissection is reduced by multiplying it by a fraction the numerator of which isthe square footage of the property used as the taxpayer's central office oraircraft facility and the denominator of which is the total square footage ofthe property.
(c) Expiration. If,in one of the seven years in which the installment of a credit accrues, theproperty with respect to which the credit was claimed is no longer used as a centraloffice or aircraft facility, the credit expires and the taxpayer may not takeany remaining installment of the credit. If, in one of the seven years in whichthe installment of a credit accrues, part of the property with respect to whichthe credit was claimed is no longer used as a central office or aircraftfacility, the remaining installments of the credit shall be reduced bymultiplying it by the fraction described in subsection (b) of this section.
In each of these cases, thetaxpayer may nonetheless take the portion of an installment that accrued in aprevious year and was carried forward to the extent permitted under G.S. 105‑129.5.(1997‑277,s. 1; 1998‑55, s. 1; 1999‑360, s. 1; 2000‑56, s. 5(e); 2001‑476,s. 12(a).)