Form Sc Sch.tc-38 - South Carolina Solar Energy Or Small Hydropower System Credit (Page 2 of 2) in pdf

is limited to $3,500 in any tax year

does not require certification

IF INSTALLATION IS COMPLETED ON OR AFTER JUNE 19, 2007:

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 as well as installation costs.

includes costs incurred in the previous tax year.

is limited to $3,500 in any tax year for each facility.

must be certified for performance by Solar Rating and Certification Corporation (SRCC) or a comparable entity endorsed by the

State Energy Office.

Important: Keep the certification with your tax records.

Solar energy systems purchased and installed in a tax year ending in 2009:

2009 Act No. 23 (the Fiscal Year 2009-10 State Budget), Part I.B, Proviso 89.114 provides: “The State income tax credit allowed

pursuant to Section 12-6-3587 of the 1976 Code for the costs of purchase and installation of a qualifying solar energy system in a

taxable year ending in 2009 is increased from twenty-five to thirty percent of such costs.”

Definitions:

A “system” includes all controls, tanks, pumps, heat exchangers, and other equipment used directly and exclusively for the solar

energy system. It does not include any land or structural elements of the building such as walls and roofs or other equipment ordinarily

contained in the structure. The credit is not allowed for a solar system unless the system is certified for performance by the nonprofit

Solar Rating and Certification Corporation or a comparable entity endorsed by the State Energy Office.

A “small hydropower system” is a new generation capacity on a nonimpoundment or on an existing impoundment that: (1) meets

licensing standards as defined by the Federal Energy Regulatory Commission (FERC); or (2) is a run-of-the-river facility with a

capacity not to exceed 5MW; or (3) consists of a turbine in a pipeline or in an irrigation canal.

NOTE: If filing a paper return, attach to your Income Tax Return. If filing electronically keep a copy with your tax records.

Social Security Privacy Act Disclosure

It is mandatory that you provide your social security number on this tax form if you are an individual taxpayer. 42 U.S.C 405(c)(2)(C)(i)

permits a state to use an individual's social security number as means of identification in administration of any tax. SC Regulation

117-201 mandates that any person required to make a return to the SC Department of Revenue shall provide identifying numbers, as

prescribed, for securing proper identification. Your social security number is used for identification purposes.

The Family Privacy Protection Act

Under the Family Privacy Protection Act, the collection of personal information from citizens by the Department of Revenue is limited

to the information necessary for the Department to fulfill its statutory duties. In most instances, once this information is collected by the

Department, it is protected by law from public disclosure. In those situations where public disclosure is not prohibited, the Family

Privacy Protection Act prevents such information from being used by third parties for commercial solicitation purposes.

34302026

Form Sc Sch.tc-38 - South Carolina Solar Energy Or Small Hydropower System Credit Page 2