MOUNT PLEASANT, S.C. (WCBD) — A new income tax credit goes into effect in January 2018, and the South Carolina Department of Revenue (SCDOR) has released guidance to help taxpayers prepare.
This tax credit is intended to offset the increased motor fuel user fee established by the South Carolina Infrastructure and Economic Development Reform Act.
Taxpayers may claim the motor fuel income tax credit when filing their state income tax returns beginning in 2019. Please note, this credit is applied to your 2018 SC Individual Income Taxes which are filed in 2019.
“The South Carolina Department of Revenue is committed to keeping taxpayers informed on this new legislation and how it can benefit them. We are here to assist all South Carolina taxpayers in understanding and easily complying when claiming the new motor fuel tax credit,” Hartley Powell, SCDOR director, said.
What You Need to Know
This is a refundable credit on up to two vehicles per resident taxpayer and is provided to offset the motor fuel user fee increase.
To calculate and claim the credit amount and for personal tax records, taxpayers must save receipts and invoices from:
o Fuel purchases beginning in January 2018.
o Vehicle preventative maintenance costs beginning in January 2018.
Taxpayers receive a credit on the lesser amount paid for either the motor fuel user fee increase or the vehicle’s preventative maintenance.
Taxpayers will calculate and claim the credit on Form I-385 when filing state income tax returns in 2019. (This form will be available in January 2019.)