NC-478: Summary of Tax Credits Limited to 50% of Tax (2024)
North Carolina · North Carolina DOR · Used for tax years 2024
North Carolina Form NC-478 summarizes tax credits subject to a 50% tax limit for 2024. It calculates the limit for franchise and income taxes and reports the amount of each credit actually taken.
Who files this form
NC-478 summarizes tax credits subject to the 50% tax limit for tax year 2024. The form includes categories for individuals, C corporations, S corporations, partnerships, estates or trusts, and insurance filers.
Most credits listed on the form have expired. Taxpayers may continue to claim remaining installments and carryforwards of prior years’ credits by completing Part 1.
What you'll need
Have the information needed to complete the form:
- Your individual name or entity’s legal name, and Social Security number or federal employer ID number.
- The type of tax return you filed and your tax-year dates.
- Credit amounts for Part 1, including any remaining installments or carryforwards being claimed.
- Franchise and income tax due, and credits not subject to the 50% limit.
- The amount of each credit actually taken in 2024.
The certification also refers to forms in the NC-478 series and accompanying schedules.
Common mistakes
- For handwritten forms, use blue or black ink, not red. Do not use dollar signs, commas, or other punctuation marks.
- Enter individual and entity names in capital letters.
- When printing, set page scaling to “none,” uncheck Auto-Rotate and Center, and do not print on both sides.
- Submit originals, not photocopies, and do not mix form types.
- Do not include the handwritten-form guidelines page.
- Do not enter less than zero on Line 12. The total on Line 23 cannot exceed Line 14.
Questions people ask
Can I still claim a credit that has expired?
The form says taxpayers may continue to take remaining installments and carryforwards of prior years’ credits by completing Part 1. It also notes that most listed credits have expired.
How is the 50% limit calculated?
In Part 2, subtract credits not subject to the 50% limit on Line 11 from the tax due on Line 10. Enter the result on Line 12, but not less than zero. Multiply Line 12 by 50% for Line 13. Line 14 is the lesser of your total credits on Line 9 or the limit on Line 13.
Where do I show the credits actually taken in 2024?
Use Part 3 to enter the amount of each credit actually taken in 2024. Add Lines 15 through 22 on Line 23. That total cannot exceed Line 14.
Who signs the form?
The taxpayer or an authorized agent signs and dates it. The signature certifies that the taxpayer meets the requirements for claiming the credits and that the information on the NC-478 series forms and accompanying schedules is accurate and complete to the best of the signer’s knowledge.