S.C. Code Regs. 69-75 - Tax Credits for Fortification Measures

Section 1. Purpose and Qualifying Fortification Measures

A. The purpose of this regulation is to set forth the fortification measures that qualify for the state income tax credit allowed pursuant to Section 12-6-3660.

B. An individual taxpayer is allowed a state income tax credit for costs incurred to implement the fortification measures outlined in this regulation. The fortification measures must be made to a structure qualifying as the taxpayer's legal residence pursuant to Section 12-43-220(c). The tax credit allowed pursuant to Section 12-6-3660 for any taxable year must not exceed the lesser of:

(1) twenty-five percent of the cost incurred; or

(2) one thousand dollars for a qualifying residence regardless of the number of taxpayers residing in the residence.

C. The standards which must be met by an individual taxpayer to qualify for state income tax credits for costs to fortify the taxpayer's legal residence pursuant to S.C. Code Section 12-6-3660 or sales and use tax credits pursuant to S.C. Code Section 12-6-3665 are the same as those required under the SC Safe Home Program that are contained in the South Carolina Safe Home Resource Document for Mitigation Techniques dated July 2008, developed for the SC Safe Home Program by the Federal Alliance for Safe Homes and available at www.scsafehome.com. That document is incorporated herein by reference and available on the Department's website. Fortification measures must be accomplished in accordance with the standards contained in the South Carolina Safe Home Resource Document for Mitigation Techniques. All products must have an ICC Evaluation Services Legacy Report or other appropriate test reports acceptable to the local building officials for the intended use.

The South Carolina Department of Insurance must review and update the manual as necessary to comply with changes in building code standards, mitigation measures or other applicable provisions of state or federal law.

Section 2. Evidence

A. To qualify for the tax credit, the individual taxpayer must maintain evidence that the fortification measures were implemented and costs incurred. Evidence necessary to prove the taxpayer is entitled to the credit must be provided to the Department of Revenue upon request.

B. The acceptable forms of evidence include:

(1) A written certification or a report (with certification) from a licensed professional with expertise in construction techniques, building design or property inspection or appraisal including, but not limited to an: architect; appraiser; building inspector; or contractor that the fortification measure has been implemented in accordance with applicable standards. Copies of the applicable receipts must accompany the certification or report; or

(2) An Affidavit from the individual taxpayer certifying that the fortification measures have been implemented. Copies of the applicable receipts must accompany the affidavit.

Notes

S.C. Code Regs. 69-75

Added by State Register Volume 33, Issue No. 6, eff June 26, 2009.