SC Tax Credit for Purchase and Installation of Energy Conservation and Renewable Energy Production Measures

From Extension Agribusiness Associate Kevin Burkett

This time of year, farmers are completing and submitting their tax return information. With that in mind, we wanted to mention a state tax credit that may be of interest. SC TC – 1 is a nonrefundable state tax credit available to farms for installing conservation tillage equipment, drip / trickle irrigation systems, or dual-purpose truck and crane equipment.

The credit is for 25% of expenses up to a maximum of $2,500 in a given tax year. You may carry forward any unused credit for up to 5 years. The credit can be claimed one time each, for each of the three measures and a separate SCH TC-1 form needs to be used for each claim.

For more information, the form is viewable at the South Carolina Dept. of Revenue website, or click here.

The code section referring to the credit can be found here (Section 12-6-3340):

Note: This should not be considered formal legal or tax advice. We recommend working with a trusted professional to determine eligibility and applicability for your operation.