The South Carolina Department of Revenue has released an advisory opinion on the Solar Energy Credit, outlining its application and clarifying its various aspects. The credit is aimed at taxpayers who purchase and install qualifying solar energy systems, small hydropower systems, or geothermal machinery and equipment. The credit is equal to 25% of the costs incurred by the taxpayer for the purchase and installation of these systems, with a limit of $3,500 per facility or 50% of the tax liability (whichever is lesser). Also, the unused portions of the credit can be carried forward for up to 10 years. The advisory addresses various scenarios, like system installations at rental properties, leased solar energy systems, community solar, and more to provide comprehensive guidance. The provision for geothermal machinery and equipment is set to expire on January 1, 2032.
SC Revenue Ruling #24-2, South Carolina Department of Revenue, Released May 2024
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