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De-ciphering the South Carolina Solar Energy Tax Credits

Avatar for Dave Llorens
Published on 05/22/2009 in
Updated 07/24/2018

south-carolina

While dsireusa.org just got a lovely site overhaul and now looks very web 2.0, they still provide us with the opportunity to make solar incentive information a whole heck of a lot clearer to the general public. Getting understandable information about solar incentives is still not easy.

I just got off the phone with a series of South Carolina Department of Energy employees, and happily I was able to finally get the information about state tax credits for solar I was looking for after being confused by what I saw online. I’ve also updated the South Carolina state solar page. Hopefully, the information I dug up will be helpful if you are considering solar energy in South Carolina.

Specifically, there’s a 25% South Carolina personal state tax credit you can take on your solar energy installation. However there is a stated cap of $3,500. Hypothetically, if your system costs $40,000 you’d be entitled to a $10,000 South Carolina tax credit. But, with that cap, you only get $3,500? As it turns out, you are able to extend the tax credits out for 10 years, and are able to recoup all of that $10,000.

South Carolina Code §12-6-3587 allows a taxpayer a credit against income taxes equal
to 25% of the costs incurred in the purchase and installation of a solar energy system,
including a small hydropower system, for heating water, space heating, air cooling,
energy efficient daylighting, heat reclamation, energy-efficient demand response or the
generation of electricity in or on a facility (or home) in South Carolina owned by the
taxpayer. The credit cannot be claimed before installation of the system is completed.
The amount of the credit may not exceed $3,500 for each facility or 50% of the
taxpayer’s tax liability for the taxable year, whichever is less. The credit in excess of
$3,500 for each facility can be carried forward for 10 years. The credit is claimed on
Form TC-38, “Solar Energy Credit.”

And here is form TC-38.

If you’re considering solar in South Carolina, we strongly recommend visiting our SC page, where we now have links to all the information you need to consider going solar. Also, we have local experts nearby you who would be very happy to break down all the financials for you. Our South Carolina solar calculator will be up and running in the near term as well. Stay tuned!

Last modified: July 24, 2018

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