Turbotax calculator with hybrid credit license#

The credit is computed separately for each vehicle or motorcycle.įull Year or Part-Year Individual Resident. The credit is available for up to two private passenger motor vehicles or motorcycles per taxpayer. The credit is calculated on South Carolina Form I-385, “Motor Fuel Income Tax Credit.” This form must be included with the resident taxpayer’s income tax return.

The credit is claimed on the resident taxpayer’s income tax return. How is the credit calculated and claimed by a resident taxpayer? Likewise, if a resident individual purchases his first vehicle in the spring after graduation from school, then the vehicle qualifies for the credit for the portion of the year the vehicle is registered in South Carolina.Ģ2. His BMW is eligible for the credit as “Vehicle 2.” He will combine his motor fuel expenses and preventative maintenance expenses paid during the year for the pickup truck and the Volvo and report the total combined expenses as “Vehicle 1” on the credit form. On the motor fuel income tax credit form, I-385, the taxpayer will list as “Vehicle 1” the vehicle make, model, tag number and other information of the vehicle owned and registered in South Carolina (i.e., the Volvo). A resident taxpayer trades in his small pickup truck in June and purchases a Volvo. Note: The result is different if Vehicle A is sold after the purchase of Vehicle B.Įxample. The taxpayer will combine the motor fuel expenses of the “old” vehicle (Vehicle A) and the “new” vehicle (Vehicle B) and will combine the preventative maintenance expenses of the “old” vehicle (Vehicle A) and the “new” vehicle (Vehicle B) for purposes of computing the credit. The vehicle traded in or totaled (Vehicle A) and the replacement vehicle (Vehicle B) count as “one vehicle equivalent” when determining the number of vehicles a taxpayer may use in computing the credit.

If a taxpayer trades in a vehicle (Vehicle A) during the tax year and purchases another vehicle (Vehicle B), or totals a vehicle (Vehicle A) and replaces the wrecked vehicle with another vehicle (Vehicle B), are both the “old” and the “new” vehicles eligible for the credit?īoth Vehicle A and Vehicle B are eligible for the credit.

Turbotax calculator with hybrid credit license#

Ineligible costs include, but are not limited to, infrastructure maintenance fees paid upon registering a vehicle in South Carolina, license plate fees, insurance, property taxes, interest expense on vehicle loans, costs reimbursed by insurance, or body and paintwork expenses.ġ8. Note: General costs associated with owning, operating, and registering a vehicle are not eligible for the credit. These costs must be incurred in South Carolina for a vehicle registered in South Carolina to qualify. Preventative maintenance costs eligible for the credit include new tires, oil changes, regular vehicle maintenance, and the like. What qualifies as a “preventative maintenance” cost eligible for the credit? Note: The motor fuel income tax credit is not available for aviation fuel, dyed diesel, liquefied natural gas used in large trucks, or gasoline, diesel or other fuels used in a lawn mower, generator, boat, airplane, farm machinery, machinery designed for off-road use, etc. A resident individual includes a “part-year resident” (a resident individual for only a portion of the tax year). A nonresident taxpayer does not qualify for the credit.Ī “resident individual” is an individual domiciled in South Carolina. A resident taxpayer may be an individual, partnership, corporation, trust, estate or any other entity subject to South Carolina income tax or required to file an income tax return.

Who is the “taxpayer” that qualifies for the credit?Ī “taxpayer” must be a South Carolina resident taxpayer to qualify for the credit. Assume instead that the taxpayer has a $0 South Carolina income tax liability for the tax year if so, he would be refunded the entire $20 motor fuel income tax credit.ħ. If a taxpayer earns a $20 motor fuel income tax credit, but has only a $5 South Carolina income tax liability for the tax year, then he will offset his $5 tax liability by $5 of his refundable credit, and would receive a refund for the remaining $15 motor fuel income tax credit.