Solar Energy and Small Hydropower Tax Credit
| Program Type | Personal Tax Credit |
|---|---|
| Technologies | Solar Water Heat, Solar Space Heat, Photovoltaics, Solar Cooling, Daylighting, Small Hydroelectric |
| Amount |
25% of eligible costs, maximum incentive in any given tax year of $3,500, or 50% of taxpayer's tax liability for that taxable year, whichever is less |
| Required Documentation | The installation date(s), proof of your costs for the installation of solar and/or small hydro-electric systems |
| Official Web Site | http://www.energy.sc.gov/index.aspx?m=1&t=5&h=19 |
South Carolina offers its taxpayers a credit of 25 percent of eligible costs with a maximum of $3,500, or 50 percent of their tax liability, or whichever is less on their annual taxes for installing a renewable solar or small hydro-electric system.
This credit became a reality to both solar and hydro-electric systems with the passing of Senate Bill 1141 in July of 2009 as its predecessor only applied to solar installations. Credits that exceed the annual cap of $3,500, or go unused, can be carried forward for 10 years.
As defined by the bill, a “system” includes “all controls, tanks, pumps, heat exchangers, and other equipment used directly and exclusively for the solar-energy system," but does not include “any land or structural elements of the building, such as walls and roofs, or other equipment ordinarily contained in the structure.”
This valuable credit not only applies to the materials required to build qualifying renewable systems, but also covers labor costs incurred on or after Jan. 1, 2006.
It is up to the owner and/or operator of this system to get the installation 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.
