Solar Energy, Small Hydropower, and Geothermal Tax Credit (Personal)
In South Carolina, taxpayers may claim a credit of 25% of the costs of purchasing and installing a solar energy system, small hydropower system, or a geothermal system for heating water, space heating, air cooling, energy-efficient daylighting, heat reclamation, energy-efficient demand response, or the generation of electricity in a building owned by the taxpayer. Effective July 1, 2009, SB 1141 expanded the scope of this credit to include small hydropower systems. Only hydropower systems installed after July 1, 2009 are eligible for the tax credit. HB 3874 of 2016 expanded the scope again to include geothermal energy projects.
The maximum