South Carolina Gov. Nikki Haley recently signed a law that establishes tax credits for geothermal system installations in the state.
According to the new law — H 3874 — geothermal systems are defined as machinery and equipment for use at a 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. The definition also requires geothermal systems to meet or exceed federal Energy Start requirements.
The tax credit is equal to 25 percent of a taxpayer’s costs for the purchase and installation of the geothermal system on a building in South Carolina and cannot exceed $3,500 for each tax year.
In addition, the law provides for tax credits for in-state solar power installations by homeowners and businesses.
The tax credits are effective Jan. 1, 2016.
Lead image credit: South Carolina Governor/Flickr