Questions & Answers
What is the Solar Energy, Small Hydropower System, or Geothermal Machinery and Equipment Credit?
The Solar Energy, Small Hydropower System, or Geothermal Machinery and Equipment Credit is a South Carolina credit that can be claimed by a taxpayer who owns either
You may not claim this credit before installation of the system is complete. The amount of the credit in any year may not exceed $3,500 for each facility or 50% of your tax liability for that year, whichever is less. We will calculate the amount of the credit you can take for this year, as well as the amount you can carry forward. Any excess credit can be carried forward for up to 10 years.
What systems qualify for the Solar Energy, Small Hydropower System, or Geothermal Machinery and Equipment Credit?
- A solar energy system or 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 in South Carolina, or
- Geothermal machinery and equipment for use in their residence in South Carolina.
You may not claim this credit before installation of the system is complete. The amount of the credit in any year may not exceed $3,500 for each facility or 50% of your tax liability for that year, whichever is less. We will calculate the amount of the credit you can take for this year, as well as the amount you can carry forward. Any excess credit can be carried forward for up to 10 years.
What systems qualify for the Solar Energy, Small Hydropower System, or Geothermal Machinery and Equipment Credit?