Did you know qualifying South Carolina homeowners may be able to save money on their tax bills? If you're remodeling, making your home more energy-efficient, or paying casualty insurance, the South Carolina Department of Revenue (SCDOR) wants you to know about state tax credits that may be available to you.
All South Carolina tax credits related to homeownership and listed below are non-refundable, meaning they cannot reduce your tax liability below zero. It's important to review the details of each credit since specific circumstances apply for eligibility.
Check out these credits and review your situation to see if you may qualify:
- Certified historic residential structure credit: If you rehabilitate a certified historic residential structure in South Carolina, you may be eligible for a credit limited to 25% of the restoration expenses, which must exceed $15,000 within 36 months. The credit must be taken over a three-year period and has a five-year carryforward.
- Residential retrofit credit: If you recently made your legal residence more resistant to hurricanes, floods, or catastrophic wind damage, you may be able to claim the lesser of 25% of the costs or $1,000. You may also claim up to $1,500 in Sales and Use Tax paid on purchases of qualifying tangible personal property.
- Excess insurance premium credit: If you pay residential property and casualty insurance premiums in excess of 5% of your adjusted gross income, you may qualify for this credit. The credit is limited to $1,250 and has a five-year carryforward.
- Energy-efficient manufactured home credit: If you buy a manufactured home that meets or exceeds the energy-saving efficiency requirements or Energy Star program requirements of the U.S. Environmental Protection Agency or U.S. Department of Energy, you may claim this credit. The credit is limited to $750 and requires a certification letter from the South Carolina Energy Office.
- Solar energy, small hydropower system, or geothermal machinery and equipment credit: You may claim this credit if you own and installed a solar energy system, small hydropower system, or geothermal machinery and equipment. The system must be used for heating water, air cooling, energy generation, space heating, heat reclamation or energy demand response. This credit is limited to 25% of the cost of purchasing and installing the system. The credit can't exceed $3,500 for each facility or 50% of your tax liability. It has a carryforward of 10 years.
How to claim tax credits:
Details about which form to file to claim these credits can be found at dor.sc.gov/taxcredits. If you use a tax preparer to file your Individual Income Tax return, be sure to ask them about the credit you want to claim.
Individual Income Tax returns are due April 18. File your return online and choose direct deposit for your refund as the fastest, safest, and easiest option. For more tips and information about filing Individual Income Tax Returns, visit dor.sc.gov/iit.
