Questions & Answers
What systems qualify for the Solar Energy, Small Hydropower System, or Geothermal Machinery and Equipment Credit?
The Solar Energy or Small Hydropower System Credit:
- includes a system installed in or on a facility in South Carolina owned by the taxpayer
- includes costs of installing systems that generate electricity without cooling or heating
- includes the cost of purchasing a system and installation costs
- is limited to $3,500 in any tax year for each facility
- must be certified for performance by the Solar Rating and Certification Corporation (SRCC) or a comparable entity endorsed by the State Energy Office
- may only be claimed for a small hydropower system if installed on or after July 1, 2009
- includes machinery or equipment owned by the taxpayer for use at the taxpayer's residence
- includes the cost of a heat pump that uses the ground or groundwater as a thermal energy source to heat a structure or as a thermal energy sink to cool a structure
- includes the cost of machinery or equipment that uses the internal heat of the earth as a substitute for traditional energy for water heating or active space heating or cooling
- is for machinery and equipment that, on the date of installation, meets or exceeds applicable federal Energy Star requirements
- may only be claimed if the system is installed on or after January 1, 2016
- is limited to $3,500 in any tax year
- The SRCC certifies solar hot water systems.
- Any solar interconnection agreement between a utility and a taxpayer is certification the system has been reviewed by an appropriate entity.
- Taxpayers with a solar energy system not connected to the grid must complete the Certification for PV Systems form found at energy.sc.gov .
- For all other equipment, the manufacturer certifies the equipment meets applicable federal standards.
- Keep all system, machinery, and equipment certifications with your tax records.