One of the worst nightmares of state industrial recruiters is to see media articles about the aggressive audit activities of their own state tax authority, with titles announcing the state and its tax administrator are “shaking business confidence” in the state, improperly auditing tax credits, rejecting legitimate tax credits, and sending “mixed messages on clean energy.” It’s even worse when their own state chamber of commerce writes and publishes a letter of concern to the governor, complaining about the alleged overreach of the North Carolina Department of Revenue in auditing taxpayers claiming the North Carolina renewable energy (RE) tax credit. That letter was signed by more than 150 businesses and business owners. It’s worse yet when a reputable firm that structures federal and state tax credit partnerships around the country is angry enough to sue the DOR for “declaratory relief and damages arising from constitutional violations,” including the alleged destruction of its business in that state.
Republished with permission. This article "The Continuing Saga of the North Carolina Renewable Energy Tax Credit" was originally published in Tax Notes State on June 19, 2023