Tax Preparation Service CoLumbia SC - Tax incentives for home owners in Columbia SC. - South Carolina is home to numerous attractive incentives for homebuyers, from power savings and tax credits, to home improvement tax credits and rebates. Local governments levy property taxes based on a property's fair market value, assessment ratio and millage rate. Local governments may also offer abatements (or exemptions) to encourage new investments or retain existing businesses.
Homestead Exemption
The Homestead Exemption program in many states offers homeowners a discount on their property taxes. The amount differs by state and county. Some states exempt a percentage of value, while others may exempt a dollar amount.
You must own your home and occupy it as your legal residence to qualify for the Homestead Exemption. You can apply for it online or in person at the Assessor's Office each year.
The Assessor's Office in Columbia County is responsible for appraising, assessing and equalizing real property. They also handle tax appeals, and review denials for Homestead Exemption claims. When applying for homestead exemption you must present proof of age (birth certificate or South Carolina driver's license) as well as proof that confirms both your age and date of birth; additionally if claiming blindness or disability this must include documentation from state/federal agencies certifying your condition.
Property Tax Exemption
Property taxes are among the least-preferred bills homeowners have to deal with, often taking an enormous bite out of income and Federal and State Tax Returns being unpredictable in nature. Many homeowners seek property tax exemptions in order to reduce their financial burden.
Local governments typically provide multiple property tax exemptions. Homestead exemptions are one of these property tax exemptions. They allow homeowners to exclude from tax assessments a certain percentage their home's valuation. Eligibility requirements typically include residency requirements, age restrictions and income limitations.
Businesses can also apply for a property tax abatement or incentive as part of their expenses. Such incentives may be available through local government and can apply to manufacturing, research and development facilities, corporate headquarters offices and distribution facilities that meet certain criteria. These incentives are usually negotiated with the county governments for projects that exceed $30 million in taxable development investment.
Solar Energy Exemption
South Carolina provides homeowners who install solar energy systems at their residence an extra tax credit on top of the federal Investment Tax Credit for solar.
South Carolina residents can claim a 25% tax credit on their solar installation costs and any unused credits can be carried forward for 10 years. Furthermore, sales taxes on additional equipment used with their system such as batteries are exempted by this state tax credit program.
South Carolina offers exemptions from property taxes for renewable energy systems that are owned by homeowners, rather than leased to third parties. This is a great incentive when you consider the costs of installing solar panels on your home.
Claiming state tax credits is relatively easy and straightforward; just ensure you have all of the required documentation, and are working with an Energy Office-endorsed provider (such as Blue Raven Solar).
Home Improvement Tax Credit
Are you planning to upgrade your home's energy efficiency? If so, federal tax credits may help cover some of the costs. These credits are available for improvements such as heat pump installations, energy-efficient doors and windows, electrical panel upgrades, insulation upgrades and home energy audits.
These tax credits are a great way for homeowners to save money on upgrades to their primary residences and keep taxes low. These credits are only available to homeowners who have chosen this route.
Columbia offers forgiven loans to encourage business growth and expansion in its boundaries. Visit the Office of Business Opportunities to learn more.