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 assess property taxes based upon the fair market value of a property, its assessment ratio and its millage rate. Abatements (or exemptions) may also be offered by local governments to encourage new investment 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.
To qualify for the Homestead Exemption, you must own and occupy your property as your legal residence. Filing for it each year either online or at the Assessor's Office.
The Assessor's Office is responsible for assessing, appraising and equalizing the real estate in Columbia County. They also handle tax appeals and review denials of Homestead Exemption claims. You must provide proof of your age (birth certificate, South Carolina driver's licence) and your date of birth when applying for a homestead exemption. If you are claiming blindness or a disability, you must also include documentation from the state/federal agencies that certify 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 being unpredictable in nature. Because of this, many seek property tax exemptions to mitigate their financial strain.
Local governments usually offer multiple exemptions from property taxes. One such property tax exemption is the homestead exemption, allowing homeowners to exclude a certain percentage of their home's value from tax assessments. The eligibility requirements include age restrictions, residency requirements and income limitations.
Businesses may also seek a property tax incentive, or abatement, as part of their development expenses. These incentives are available through local governments and can be applied to manufacturing, research-and-development facilities, corporate headquarters and distribution facilities that meet specific criteria. These incentives are usually negotiated with the county governments for projects that exceed $30 million in taxable development investment.
Solar Energy Tax Exemption
South Carolina offers homeowners who install solar energy at their home an additional tax credit Amended Tax Returns in addition to the federal Investment Tax Credit.
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. This state tax credit program also exempts sales taxes on any additional equipment that is used with the system, such as batteries.
South Carolina also offers property tax exemptions for residential renewable energy systems owned by homeowners rather than leased from third parties, making this an attractive incentive when considering the costs associated with installing solar energy panels on your own 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? Federal tax credits could help you cover some of the cost. These credits apply to improvements such as heat pumps, energy-efficient windows and doors, insulation upgrades, electrical panel 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. Unfortunately, only homeowner who have chosen this path are eligible for these credits.
Columbia offers forgivable loans to promote business growth and expansion within its boundaries. Visit the Office of Business Opportunities to learn more.