SC Department Of Revenue Rulings on Sales & Use Taxes

Post author:Admin
Post published:November 26, 2022
Post category:Renewables, Solar, Stationary Battery Storage, Hydro, Energy

Randy, We are working with manufactures who are tax exempt on their electricity they purchase; my question is ” if they install a solar system do they have to pay sales tax on said system”?

Thanks so much,

Susi

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Susi and Matt:

As requested, please see the attached rulings regarding South Carolina sales tax exemptions. Here is a brief summary:

Rev Rul 15-14: Concludes that the solar energy generating facility is exempt from S&U Taxes but is subject to SC Electric Power Taxes provided the sale to the utliity is not otherwise exempt. I am still investigating…Rev Rul 10-10 also discusses the Electric Power Tax (see pg 8 of 9), and it appears that the exemption for the generation or electricity by a taxpayer in SC for use of the electricy on their own facility.

Priv Ltr Rul 15-1: Concludes large scale (74.9 MW) solar farm is exempt from S&U Taxes. No mention of Electric Power Tax.

Rev Rul 10-10: Concludes that the excess electricity from a net-metering system transferred to the grid is not subject to S&U Taxes. This ruling states on Pg 9 that is does not apply to net purchase and sale project or by all sell all purchase plans.

Please review and let’s discuss any questions you may have.

Thanks,

Randy M. Lucas, CPA | Principal Consultant | Lucas Tax + Energy Consulting | Ph. 704.968.5506