Are the sales and use tax exemption and $750 income tax credit for energy efficient manufactured homes still available in South Carolina?

Plain-English summary

Two South Carolina tax breaks for energy efficient manufactured homes ended on July 1, 2024 and are unavailable as of July 2, 2024:

1. Sales and use tax exemption — a total exemption under S.C. Code Ann. § 12-36-2110(B) for a manufactured home the EPA and U.S. Department of Energy designate as meeting or exceeding their energy-saving efficiency requirements (or the ENERGY STAR program).
2. Income tax credit — a $750 nonrefundable credit under S.C. Code Ann. § 48-52-870 for buying a qualifying energy efficient manufactured home from a South Carolina-licensed retail dealership for use in the State.

Both were enacted in 2008, took effect July 1, 2009, and were originally set to expire July 1, 2019. In 2020 the General Assembly extended both to July 1, 2024. Neither has been extended again.

Beginning July 2, 2024, sales of these homes are subject to sales and use tax. South Carolina still applies its special rules for calculating the maximum sales and use tax on manufactured homes under § 12-36-2110(B) — the letter directs sellers to that section for the continuing efficiency standards and the maximum-tax computation.

What this means for you

Manufactured-home dealers

Charge sales and use tax on energy efficient manufactured homes sold on or after July 2, 2024, using the manufactured-home maximum-tax rules in § 12-36-2110(B). The former total exemption no longer applies.

Buyers of a qualifying home

Purchases made on or after July 2, 2024 do not qualify for the $750 income tax credit, and the sale is no longer exempt from sales and use tax.

Timing matters

The cutoff is tied to the July 1, 2024 expiration date. Whether a transaction qualified depends on when the sale occurred relative to that date.

Common questions

Q: Can I still get the sales tax exemption on an energy efficient manufactured home?
A: No — it expired July 1, 2024 and is unavailable as of July 2, 2024.

Q: Is the $750 income tax credit still available?
A: No. The credit under § 48-52-870 also expired July 1, 2024 and was not extended.

Q: Are manufactured homes now taxed like everything else?
A: They are subject to sales and use tax, but South Carolina applies special maximum-tax calculation rules for manufactured homes under § 12-36-2110(B).

Q: Could these incentives come back?
A: Only if the General Assembly enacts a new or renewed provision; this letter reports that the prior incentives were not extended again.

Citations and references

Statutes:

• S.C. Code Ann. § 12-36-2110(B) (2014) — sales and use tax treatment (and maximum-tax calculation) for energy efficient manufactured homes; total exemption expired July 1, 2024
• S.C. Code Ann. § 48-52-870 (Supp. 2018) — $750 nonrefundable income tax credit; expired July 1, 2024

Authority:

• S.C. Code Ann. §§ 12-4-320, 1-23-10(4); SC Revenue Procedure #09-3

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL24-5.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 #24-5
SUBJECT:

Energy Efficient Manufactured Homes – Expiration of Sales and Use Tax
Exemption and Income Tax Credit
(Sales and Use Tax, Income Tax)

DATE:

May 14, 2024

REFERENCES:

S.C. Code Ann. Section 12-36-2110(B) (2014)
S.C. Code Ann. Section 48-52-870 (Supp. 2018)

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 enacted a sales and use tax exemption and an income tax credit
as financial incentives for the purchase and installation of certain energy efficient manufactured
homes in South Carolina. S.C. Code Ann. §§ 12-36-2210(B) and 48-52-870. The exemption and
the credit were both effective beginning July 1, 2009, and were originally set to expire on July 1,
2019. In 2020, however, the General Assembly extended the expiration date for both the
exemption and the credit to July 1, 2024.
This Information Letter gives notice that the sales and use tax exemption and the income tax
credit are expiring on July 1, 2024, and will no longer be available for use as of July 2, 2024.
SALES AND USE TAX EXEMPTION
Sales and Use Tax Exemption. Code Section 12-36-2110(B) was amended in 2008 to allow a
total sales and use tax exemption on the sale of a manufactured home designated by the United
States Environmental Protection Agency and the United States Department of Energy as meeting
or exceeding each agency’s energy saving efficiency requirements or designated as meeting or
exceeding such requirements under each agency’s ENERGY STAR program. Although that
exemption originally expired in 2019, it was extended until July 1, 2024.

Expiration of Total Sales and Use Tax Exemption. Beginning July 2, 2024, sales of
manufactured homes meeting or exceeding the energy efficiency requirements or designations of
the United States Environmental Protection Agency and the United States Department of Energy
are no longer exempt and will be subject to the sales and use tax. South Carolina law provides
special rules for calculating the sales and use tax on sales of manufactured homes. Please consult
Code Section 12-36-2110(B) for a description of continuing energy efficiency standards and for
the specific calculation of the maximum sales and use tax.
INCOME TAX CREDIT
Income Tax Credit. Code Section 48-52-870 was added in 2008 to provide a $750 nonrefundable
income tax credit to any person who purchases a manufactured home from a retail dealership
licensed by the South Carolina Manufactured Housing Board for use in South Carolina if the
manufactured home was designated by the United States Environmental Protection Agency and
the United States Department of Energy as meeting or exceeding each agency’s energy saving
efficiency requirements or designated as meeting or exceeding such requirements under each
agency’s ENERGY STAR program.
Expiration of Income Tax Credit. During the 2020 legislative session, the General Assembly
amended Code Section 48-52-870 to extend the income tax credit until July 1, 2024. The income
tax credit has not been extended again. Therefore, beginning July 2, 2024, the income tax credit
is no longer available based on the purchase of a previously qualifying manufactured home.