Plug-In Hybrid Electric Vehicle (PHEV) Tax Credit

For taxable years before 2017, an income tax credit is available for the in-state purchase or lease of a new PHEV. For the purpose of this incentive, a PHEV is a vehicle equipped with an internal combustion and an electric engine with an all-electric range of not less than nine miles and at least four kilowatt hours (kWh) of battery capacity. The credit is equal to $667, plus $111 if the vehicle has at least five kWh of battery capacity, plus an additional $111 for each additional kWh, with a maximum allowed credit of $2,000. Low- or medium-speed vehicles do not qualify for this credit. Total claims for all taxpayers in one year may not exceed $200,000 and are available on a first come, first served basis. (Reference House Bill 3059, 2012, and South Carolina Code of Laws 12-6-3376)