How long did South Carolina extend its sales-tax exemption and $750 credit for energy-efficient manufactured homes in 2019?

Plain-English summary

SC Information Letter #19-21 confirmed that both South Carolina incentives for qualifying energy-efficient manufactured homes continued through June 30, 2020.

The two incentives were:

• a full sales and use tax exemption under Code Section 12-36-2110(B); and
• a $750 nonrefundable income-tax credit under Code Section 48-52-870.

Act No. 91's fiscal-year proviso extended the Energy Efficient Manufactured Homes Incentive Program into fiscal year 2019-2020 and directed the Energy Office to administer it in the same manner as the prior fiscal year.

The Department expressly withdrew Information Letter 19-18, which had announced that the sales-tax exemption expired July 2, 2019 while only the credit continued. IL 19-21 replaced that transition notice and confirmed that both incentives ran through June 30, 2020.

What this means for you

Qualifying buyers and dealers

For the covered period, the sales-tax exemption and income-tax credit continued together. A buyer still had to satisfy the separate statutory requirements for each benefit; the extension did not remove the qualifying-home, licensed-dealer, South Carolina use, or energy-efficiency conditions.

Transactions after June 30, 2020

This letter does not establish treatment after the fiscal-year extension ended. Later legislation and Department guidance must be checked.

Common questions

Q: Did this letter restore the sales-tax exemption?

A: It withdrew the notice saying the exemption had expired and confirmed that both incentives were extended through June 30, 2020.

Q: How much was the income-tax credit?

A: $750 and nonrefundable, subject to Code Section 48-52-870's requirements.

Q: Did the extension continue indefinitely?

A: No. This notice confirmed the incentives only through June 30, 2020.

Citations and references

• S.C. Code Ann. § 12-36-2110(B) — manufactured-home sales and use tax exemption requirements
• S.C. Code Ann. § 48-52-870 — $750 income-tax credit
• S.C. Act No. 91 of 2019, Part IB, § 73, Proviso 73.6 — fiscal-year 2019-2020 extension
• SC Information Letter 19-18 — withdrawn prior notice

Source

• Landing page: SC Advisory Opinion Search
• Original PDF: IL19-21.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 12265, Columbia, South Carolina 29211
SC INFORMATION LETTER #19-21
SUBJECT:

Energy Efficient Manufactured Homes Incentive Program - Extension (Sales, Use and Income Taxes)

DATE:

August 1, 2019

SUPERSEDES:

SC Information Letter #19-18

REFERENCES:

Act No. 91 of 2019, Part IB, Section 73, Proviso 73.6

AUTHORITY:

S.C. Code Ann. Section 12-4-320 (2014)
S.C. Code Ann. Section 1-23-10(4) (2005)
SC Revenue Procedure #09-3

SCOPE:

An Information Letter is a written statement issued to the public to announce general information useful in complying with the laws administered by the Department. An Information Letter has no precedential value.

In 2008, the General Assembly provided financial incentives for the purchase and installation of certain energy efficient manufactured homes in South Carolina. 1 These incentives, a sales and use tax exemption and an income tax credit, were effective from July 1, 2009 through July 1, 2019. This legislative session, Act No. 91 of 2019, Part IB, Section 73, Proviso 73.6 extends these incentives and reads: The Energy Efficient Manufactured Homes Incentive Program shall be extended into the current fiscal year and the Office of Regulatory Staff Energy Office shall administer the program, including incentives for qualifying taxpayers, in the same manner as it was administered in the prior fiscal year. The purpose of this Information Letter is to withdraw SC Information Letter #19-18, and thereby confirm the extension of the sales and use tax exemption and the extension of the income tax credit until June 30, 2020. See Code Sections 12-36-2110(B) and 48-52-870 for the requirements of each incentive. 1

See Act No. 354 of 2008.