Exactly How Solar Works In South Carolina

Watch the ultimate solar video for South Carolina homeowners. Below, you will see a simple guide to claiming your Federal Tax Credit as well as the forms for either you or your tax professional to submit.

South Carolina Income Tax Credit:

First Time Filers:

All Summit customers who purchased via cash or finance in South Carolina may qualify for the 25% SC Renewable Tax Credit.

Below, you will see a simple 6-step guide to claiming your Federal Tax Credit as well as the forms for either you or your tax professional to submit.

1. Type of system Installed (check one), You would check the first selection “Solar energy system (must be certified for performance by the nonprofit Solar Rating and Certification Corporation (SRCC) or a comparable entity endorsed by the State Energy Office)”. In SC the treasury allows your utility’s “Permission to Operate” as a certification of system compliance so you would not require additional SRCC certificates to file.
2. On line 1, fill in the cost of your system as it is listed on your final invoice.
3. Fill in line 2 and 3. Line 4 should match the amount of your federal tax credit as it was listed on your proposal.
4. Line 8 would be TOTAL SOUTH CAROLINA TAX from your SC 1040 forms (this is line 10 on the Individual Income Tax return).  
5. Fill in line 11 only if you do not have the tax liability to use the entire credit this year and want some to roll over to subsequent tax years.
6. File this form when you file your state taxes.

 If you are filing online, most services already have the Federal forms loaded, the state form can vary by processor (on occasion you would have to mail that one in manually for processing). 

For South Carolina, the TC-38 State form is:
http://www.energy.sc.gov/files/view/TC38_2016.pdf

2nd year filing and beyond:

South Carolina Income Tax Credit – Carry Forward

If you have previously filed for your SC ITC and had a Credit Carried Forward on line 11 of a prior years TC-38 form, you would follow the instructions below.

1. Type of System Installed (check one), You would check the first selection “Solar energy system (must be certified for performance by the nonprofit Solar Rating and Certification Corporation (SRCC) or a comparable entity endorsed by the State Energy Office)”. In SC the treasury allows your utility’s “Permission to Operate” as a certification of system compliance so you would not require additional SRCC certificates to file.
2. On line 3, enter the value from your prior year Unused credits carried forward from the prior year’s line 11.
3. Line 8 would be TOTAL SOUTH CAROLINA TAX from your SC 1040 forms (this is line 10 on the Individual Income Tax return). 
4. Fill in line 11 only if you do not have the tax liability to use the entire credit this year and want some to roll over to subsequent tax years.
5. File this form with your state taxes.

 If you are filing online, most services already have the Federal forms loaded, the state form can vary by processor (on occasion you would have to mail that one in manually for processing). 

For South Carolina, the TC-38 State form is:
http://www.energy.sc.gov/files/view/TC38_2016.pdf