Tax Law Insights

On February 16, 2016, a new income tax credit for taxpayer's who construct, purchase, or lease solar energy property was enacted, and is effective for income tax years beginning after 2015. L. 2016, H3874 (to be codified at S.C. Code § 12-6-3770). The credit is scheduled to sunset on December 31, 2017. The credit is equal to 25% of the cost, including installation cost, of solar energy property. The maximum credit that can be claimed is $2,500,000. The credit is claimed over five years in equal annual installments. To qualify for the credit, the solar energy property must be located on the ...