Form Sc Sch.tc-38 - Solar Energy System Credit
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2STATE OF SOUTH CAROLINA
1350
1350
SC SCH.TC-38
DEPARTMENT OF REVENUE
SOLAR ENERGY
(Rev. 11/20/07)
SYSTEM CREDIT
3430
20
Attach to your Income Tax Return
Names As Shown On Tax Return
SS No. or Fed. EI No.
Installation of Solar Energy Credit Computation
1. Cost incurred in installing solar energy systems in buildings in South Carolina owned by the taxpayer .
1.
2. Maximum credit amount. Multiply line 1 by 25% (0.25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.
3. Enter the amount carried forward from previous tax years , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.
4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
5. $3,500 annual credit limit (per facility if placed in service on or after June 19, 2007. See instructions) .
5.
6. Maximum single year credit amount. Multiply line 5 by the number of facilities . . . . . . . . . . . . . . . . . . .
6.
7. Enter the lesser of lines 4 and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.
8. Current year tax liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.
9. Current year credit limit. Multiply line 8 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.
10. Enter the smaller of lines 7 and 9. This is your current year credit. Enter this amount on the
appropriate tax credit schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.
11. Line 4 minus line 10. Unused credits may be carried forward for up to 10 years . . . . . . . . . . . . . . . . . .
11.
General Information
For installation costs incurred in tax years beginning on or after January 1, 2006, a taxpayer who installs a solar energy system is
allowed an individual or corporate income tax credit of 25% of the costs incurred in purchasing and installing the system in or on a
facility in South Carolina and owned by the taxpayer. The system has to be for heating water, space heating, air cooling, or the
generation of electricity. The credit may not be claimed until the installation is completed. The amount of credit the taxpayer may
use in a tax year is limited to $3,500 for each facility or 50% of the taxpayer's tax liability, whichever is less. If the amount of the
credit claimed is more than $3,500 for each facility, the taxpayer may carry forward the excess credit for up to 10 years.
A system includes all controls, tanks, pumps, heat exchangers, and other equipment used directly and exclusively for the solar
energy system. The system does not include any land or structural elements of the building such as walls and roofs or other
equipment ordinarily contained in the structure. No credit is allowed unless the system is certified for performance by the nonprofit
Solar Rating and Certification Corporation (SRCC) or a comparable entity endorsed by the South Carolina Energy Office.
Systems installed before June 19, 2007
The solar energy systems credit was amended by Section 13 of 2007 Act No. 83, with an effective date of June 19, 2007. Systems
installed before to June 19, 2007 are covered by the law in effect prior to Act No. 83:
34301028
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