7 tax tips to help SC homeowners save more money in 2023

Owning a home can already be a costly proposition in 2023. Don’t leave money on the table too.

The 2023 tax season is well underway any many people have begun filing their returns before the April 18 deadline. And according to the South Carolina Department of Revenue, there are more than 1 million homeowners in the state who could benefit from tax credits and exemptions.

From upgrades that make your home more energy efficient to standard remodeling, there are multiple ways homeowners could qualify to save some money through tax credits and exemptions. Details about which form to file to claim any of the tax credits listed below can be found by clicking here.

Here are seven tax tips for homeowners this year, according the SCDOR.

Energy efficient manufactured home credit

You can claim this credit of up to $750 in you have bought a manufactured home that meets or exceeds the energy-saving efficiency requirements or Energy Star program of the U.S. Environmental Protection Agency or U.S. Department of Energy. You must obtain a certification letter from the South Carolina Energy Office to get the credit.

Residential Retrofit credit

You may be able to claim $1,000 or the lesser of 25% of the costs of any upgrades to your legal residence that made it more resistant to hurricanes, floods or catastrophic wind damage. You could also be eligible for up to $1,500 in sales and use tax paid on purchases of qualifying tangible personal property.

Certified historic residential structure credit

Being a history buff could also save you some cash. The SCDOR states that if you have rehabilitated a certified historic home in the state, you may be eligible for a credit of 25% of the restoration cost, which must exceed $15,000 within 36 months. Also, the credit must be taken over a three-year period and has a five-year carry-forward.

The school operating cost exemption

Owner-occupied homes in the state are exempt from all school operating taxes. Taxpayers don’t have to submit an application, however, they must have applied for a 4% ratio on the assessed value of their homes. Second homes, business and 6% ratio property do not qualify for the exemption.

Excess insurance premium credit

You may qualify for a $1,250 credit if you pay residential property and casualty insurance premiums in excess of 5% of your adjusted gross income. The credit has a five-year carry-forward.

Solar energy, small hydropower system or geothermal credit

If you have installed a solar energy system, small hydropower system or geothermal machinery at your home, you may be entitled to a credit limited to 25% of the costs. The credit cannot exceed $3,500 for each facility or 50% of your tax liability.

The system installed must be used for heating water, air cooling, energy generation, space heating, heat reclamation or energy demand response to qualify. Also, the credit has a carry-forward of 10 years.

Homestead exemption

You may apply to your county auditor for an exemption of all the remaining taxes for the first $50,000 of value for all purposes except for school operating taxes if you are at least 65 years old, legally blind or physically disabled.