Alternative motor vehicle credit
South Carolina provides an Alternative Motor Vehicle Credit for resident taxpayers who qualify for the corresponding federal credit under Internal Revenue Code Section 30B.
The state credit equals 20% of the federal credit allowed under Internal Revenue Code Section 30B, without regard to the federal phase-out limits described in Section 30B(f).
Eligibility requirements
To qualify for the South Carolina Alternative Motor Vehicle Credit:
- The taxpayer must be a resident taxpayer; and
- The taxpayer must be eligible for the federal credit pursuant to Internal Revenue Code Section 30B.
The state credit is tied directly to eligibility for the federal Alternative Motor Vehicle Credit.
Federal credit components
Internal Revenue Code Section 30B provides an alternative motor vehicle credit equal to the total of the following:
- Qualified fuel cell motor vehicle credit
- Advanced lean burn technology motor vehicle credit
- Qualified hybrid motor vehicle credit
- Qualified alternate fuel motor vehicle credit
For purposes of the South Carolina credit, the provisions of Internal Revenue Code Section 30B are treated as permanent.
Credit amount and carryforward
The South Carolina credit equals 20% of the federal credit allowed.
If the full credit cannot be used in the year it is claimed, any unused portion may be carried forward for up to five years.
How to claim the credit
The Alternative Motor Vehicle Credit is claimed on Form TC-35, titled “Alternative Motor Vehicle Credit.” Taxpayers must complete and submit Form TC-35 with their South Carolina income tax return to claim the credit.
Frequently asked questions
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