H 3874 provides an income tax credit to any individual or business installing geothermal
COLUMBIA, S.C. — On Feb. 16, South Carolina Gov. Nikki Haley signed H 3874 into law, which provides an income tax credit to any individual or business that “constructs, purchases, or leases certain solar energy property and places it in service in this state … and allows an income tax credit for certain costs incurred by the taxpayer in the purchase and installation of geothermal machinery and equipment.”
H 3874 is retroactively effective starting Jan. 1, 2016, and defines geothermal machinery and equipment as any machinery and equipment for use at a taxpayer’s residence that:
• Is a heat pump that uses the ground or groundwater as a thermal energy source to heat a structure or as a thermal energy sink to cool a structure;