Federal Tax Credit

The federal tax credit is obtained by filing Form 5695 (https://www.irs.gov/pub/irs-pdf/f5695.pdf). Input the total cost of solar into line 1, it will then be multiplied by 30% in line 6.

Solar Federal Tax Credit
Fill in Line 1 with the total cost of solar

State Tax Credit

The state tax credit uses two forms in addition to 1040 (https://dor.sc.gov/forms-site/Forms/SC1040_2018.pdf).

The first is TC38 (https://dor.sc.gov/forms-site/Forms/TC38_2016.pdf) which helps you calculate the credit:

SC Solar Tax Credit
Line 1 should be the total cost of the system

Along with your 1040, include the TC attachment (https://dor.sc.gov/forms-site/Forms/SC1040TC_2018.pdf) with the results from above on the next available line:

South Carolina Solar Tax Credit
Add the value calculated on the worksheet to the Amount column

The state tax credit caps at either $3500 or 50% of your state liability, whichever is lower.

If you have further questions, please seek advice from a CPA or reach out to us (843) 203-0320.