Consider Federal and State Tax Incentives When Installing Solar
South Carolina has some of the best state tax incentives in the country for homeowners with solar energy. And the benefits don’t stop there. Federal tax incentives are also available to South Carolina homeowners. So, make sure that when you’re considering solar energy for your home, be sure to consider both the state and federal tax incentives.
Verify Products Are Eligible for Tax Incentives
The Solar Rating and Certification Corporation is a nonprofit that certifies solar heating and cooling systems to verify they are eligible for a South Carolina tax credit as stated in the South Carolina Code of Laws.
South Carolina State Tax Incentives
There’s a huge state tax incentive for South Carolina homeowners on total systems overall. Currently, a whopping 25% of the total system cost can be credited, up to $35,000. Note that the credit must be taken over time, up to $3,500 each year over 10 years, or 50% of the total tax liability per year, up to 10 years. Be sure to retain a copy of your Solar Rating and Certification and all receipts with tax records in case you are ever audited.
The South Carolina Energy Office recognizes any photovoltaic interconnection system as an implied agreement between an energy utility company and a taxpayer as certification that the system has been reviewed by an accredited entity. If the photovoltaic system is not connected to the utility grid, then the taxpayer is bound to certify the specific conditions on a federal tax form in order to receive the state tax credit.
Federal Tax Incentives
Provided that you have a federal tax liability in the year that your new solar energy system goes into service, you can get a federal tax credit of up to $2,600 for every $10,000 that the solar system costs. This amounts to 26%. If you can’t take the full credit because your tax liability isn’t big enough, you can roll over the credit into future tax years.
Be sure to work with your CPA so that you benefit as much as possible from both state tax incentives and federal tax credits. For more information about benefiting from a new solar energy system, please contact Carolina Energy Conservation today.
