If you’re a South Carolina homeowner and want to save money on your tax bill, there are tax credits that may be available.
All South Carolina tax credits related to homeownership are non-refundable, meaning they cannot reduce your tax liability below zero. Each of the credits applies to specific circumstances. Review the facts in your situation to see if any of the credits detailed below apply:
• Certified Historic Residential Structure Credit: Taxpayers who rehabilitate a certified historic residential structure in South Carolina are eligible for the credit, which is limited to 25 percent of 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. Use form TC-22 to claim the credit.
• Residential Retrofit Credit: This credit is for individuals who retrofit their legal residence to be more resistant to hurricanes, floods, or catastrophic wind damage. Taxpayers can claim the lesser of 25 percent of the costs or $1,000. Also, taxpayers can claim up to $1,500 in Sales and Use Tax paid on purchases of qualifying tangible personal property. Use form TC-43 to claim the credit.
• Excess Insurance Premium Credit: Individuals who pay residential property and casualty insurance premiums in excess of 5 percent of their adjusted gross income qualify for this credit. The credit is limited to $1,250 and has a five-year carryforward. Use form TC-44 to claim the credit.
• Energy Efficient Manufactured Home Credit: Taxpayers who 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 may claim this credit. The credit is limited to $750 and requires a certification letter from the South Carolina Energy Office. Use form TC-53 to claim the credit.
• Solar energy, small hydropower system, or geothermal machinery and equipment credit: This credit is for those who own and install 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. The credit is limited to 25 percent of the cost of purchasing and installing the system. The credit can’t exceed $3,500 for each facility or 50 percent of tax liability. It has a carryforward of 10 years. Use form TC-38 to claim the credit.
Find more details about these credits and others on the South Carolina Department of Revenue’s (SCDOR) website.
Individual Income Tax returns are due April 15. File your return online and choose direct deposit for your refund for the fastest, safest, and easiest options. For more tips and information about filing Individual Income Tax Returns, visit dor.sc.gov/iit.