South Carolina EV Tax Credits Guide

Based on data from the federal Department of Energy and the Bureau of Transportation Statistics, as of midyear 2022, 0.10 percent of all vehicles registered within South Carolina are electric; this comes out to 4,390 units, which makes the state 28^th in the nation with regard to EV penetration. There are roughly 400 charging stations within the state, again as of 2022.

More than half of South Carolina’s electricity is generated via nuclear power plants, ranking third in the nation in this regard. Among other sources, natural gas generation now exceeds coal-burning plants in the state. About 8 percent of its electric power comes from renewable resources, including hydropower, solar power and biomass sources.

No, South Carolina does not offer any tax credits, rebates or other incentives to buyers of new electric vehicles or plug-in hybrid vehicles.

No, South Carolina does not offer any tax credits, rebates or other incentives to buyers of used electric vehicles or plug-in hybrid vehicles.

While the state does not offer incentives to subsidize the purchase or installation of home electric car charging stations, they are available from local power companies Duke Energy and Santee Cooper.

Duke Energy offers residential customers in South Carolina a $500 rebate toward the purchase of a qualifying Level 2 charger and a monthly credit of $13.87 provided they agree to charge their EVs during off-peak hours. Santee Cooper offers residential customers a rebate of up to $250 for the purchase of a qualified Level 2 EV charging station.

South Carolina affords some of the most generous incentives in the U.S. for the purchase and installation of solar panels to generate electric power. Residents can claim a state tax credit of 25 percent of the total system cost, up to $35,000. Those who cannot claim the entire credit in a single year can carry over the balance for up to 10 years subsequent to the installation. In addition to solar panels, the tax credit applies to solar water heaters, solar space heaters, geothermal heat pumps and small hydroelectric systems.

This is on top of a federal tax credit of 30 percent to have solar panels installed, which includes the cost of materials, labor and related fees, including necessary permits.

What’s more, South Carolina energy companies with over 100,000 customers must offer net metering programs that allow solar-generating homeowners to earn credits for the excess power their systems produce.

Yes, South Carolina charges electric car owners a biennial supplemental license fee of $120 as a road use fee, while owners of gas/electric hybrid-powered models pay $60. Both are on top of the usual annual registration fee of $40.

Those purchasing or leasing an EV in South Carolina may qualify for the Federal Electric Car Tax Credit of up to $7,500, though it’s limited to models assembled in North America, and is subject to limitations regarding vehicle type, price and family income thresholds, which may yet change.

In addition, used electric vehicles are eligible for a one-time federal tax credit of up to $4,000, or 30 percent of the purchase price, provided they cost less than $25,000, are more than two years old and are being sold by its original owner. They are also subject to family-income restrictions and other limitations.