Energy conservation and renewable energy tax credit
South Carolina’s Energy Conservation and Renewable Energy Tax Credit encourages investment in qualifying energy conservation and renewable energy measures.
Eligible businesses may claim a credit equal to 25% of qualifying expenditures incurred during the taxable year for the purchase and installation of eligible equipment.
Eligible measures
The credit applies to expenditures for the purchase and installation of:
- Conservation tillage equipment
- Drip or trickle irrigation systems, including all necessary measures and equipment
- Dual purpose combination truck and crane equipment
To qualify, equipment must be purchased and installed during the taxable year.
Credit amount and limitations
The credit equals 25% of qualifying expenditures.
The maximum credit that may be claimed is:
- $2,500 for each qualifying measure
A company may claim the credit only one time for each of the three qualifying measures during its lifetime.
Pass-through entities
For pass-through entities, the credit is determined at the entity level and is limited to $2,500.
Carryforward provision
If the full credit cannot be used in the taxable year it is earned, any unused portion may be carried forward for up to five years.
Frequently asked questions
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