North Carolina · Industrial Rehabilitation · NC-MILL-001
Mill Rehabilitation Tax Credit
Publication revised September 24, 2026. Sourcebook page 208.
Credit amount / calculation
Credit based on qualified rehabilitation expenditures for eligible mill property under Article 3H.
Business fit and eligible activity
Directly relevant to qualifying historic or vacant mill property; the credit-generating sunset is currently 2030. Eligible property rehabilitation or redevelopment; not the cost of wood supplied to someone else's project.
Illustrative business benefit
Use-of-credit illustration, not an estimated award: assume the agency or completed tax form establishes a $1,000 credit for the qualifying activity described above. If sufficient eligible tax is due, a $1,000 credit available for current use reduces that tax by $1,000. If annual limits allow only $600, that is this year's saving; the other $400 survives only if the carryforward or transfer rules permit. Obtain the actual program calculation before estimating a project benefit.
Timing / first action
Seek approval before signing a purchase order, contract, lease or other binding commitment. Confirm the exact point at which a purchase order, contract, lease, or other binding commitment would make the project ineligible.
Official sources
Related programs
Tax Incentives for Major Recycling Facilities
Credit package under Article 3C for qualifying major
Only very large qualifying recycling facilities will meet the scale requirements.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.
Rehabilitation Credit (Internal Revenue Code §47)
Generally
A forest-products company rehabilitating a certified historic mill or industrial building for income-producing use may qualify.