South Carolina

Solar Energy, Small Hydropower, and Geothermal Tax Credit (Corporate)

Last Updated September 27, 2018

Implementing Sector: State
Category: Financial Incentive
State: South Carolina
Incentive Type: Corporate Tax Credit
Web Site: http://www.energy.sc.gov/renewable
Administrator: South Carolina Department of Revenue
Start Date: 01/01/2006
Expiration Date: 12/31/2018 for Geothermal
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Geothermal Electric, Solar Photovoltaics, Geothermal Heat Pumps, Hydroelectric (Small)
Eligible Efficiency Technologies: Tankless Water Heater
Applicable Sectors: Commercial, Residential
Incentive Amount: 25% of eligible costs
Maximum Incentive: In any given tax year, $3,500, or 50% of taxpayer’s tax liability for that taxable year, whichever is less. If the amount of the credit exceeds $3,500 for each facility, the taxpayer may carry forward the excess for up to ten years.
Equipment Requirements: Solar-thermal systems must be certified by SRCC or a comparable entity endorsed by the S.C. Energy Office
Carryover Provisions: Excess credit may be carried forward up to 10 years

Incentives

Incentives

Technologies: Solar Water Heat, Solar Space Heat, Geothermal Electric, Solar Photovoltaics, Geothermal Heat Pumps, Hydroelectric (Small)
Sectors: Commercial, Residential
Parameters: The incentive is 25.00 %, The incentive has a maximum of $3500.00

This program has 2 Incentives

Technologies: Solar Water Heat, Solar Space Heat, Geothermal Electric, Solar Photovoltaics, Geothermal Heat Pumps, Hydroelectric (Small)
Sectors: Commercial, Residential
Parameters: The incentive is 25.00 %, The incentive has a maximum of $3500.00

Summary

In South Carolina, taxpayers may claim a credit of 25% of the costs of purchasing and installing a solar energy system, small hydropower system, or a geothermal system for heating water, space heating, air cooling, energy-efficient daylighting, heat reclamation, energy-efficient demand response, or the generation of electricity in a building owned by the taxpayer. Effective July 1, 2009, SB 1141 expanded the scope of this credit to include small hydropower systems. Only hydropower systems installed after July 1, 2009 are eligible for the tax credit. HB 3874 of 2016 expanded the scope again to include geothermal energy projects installed between January 1, 2016 and January 1, 2019.

The maximum credit a taxpayer may take in any one tax year is $3,500 for each facility or 50% of the taxpayer’s tax liability for that taxable year, whichever is less. Unused credit, or credit that exceeds the annual cap, may be carried forward for 10 years.

The term “system” includes “all controls, tanks, pumps, heat exchangers, and other equipment used directly and exclusively for the solar-energy system.” The term “system” does not include any land or structural elements of the building, such as walls and roofs, or other equipment ordinarily contained in the structure.

Solar-thermal systems must be certified by the Solar Rating and Certification Corporation (SRCC) or a comparable entity endorsed by the South Carolina Energy Office to qualify for the credit, unless the system was installed before June 19, 2007.

The South Carolina Department of Revenue offers forms and instructions for claiming the tax credit.

Pursuant to House Bill 3874, the geothermal tax credit will expire on January 1st, 2019 and is capped at $2.5 million dollars.

Authorities

Name: S.C. Code § 12-6-3587
Date Enacted: 6/22/2006
Effective Date: 1/1/2006

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