South Carolina residents may want to start saying yes when it comes to getting receipts at gas pumps.
When state lawmakers voted last summer to increase the state’s motor fuel tax two cents each year until 2022 to help pay for road improvements and maintenance, they also passed an income tax credit for up to two vehicles or motorcycles for each resident taxpayer. The credit is calculated based on motor fuel purchased in South Carolina and preventative vehicle maintenance done in the state.
The tax credit may be claimed beginning in tax years 2018 through 2022. Taxpayers wanting to claim the credit should begin saving receipts Jan. 1.
Each resident taxpayer may include up to two private passenger vehicles that are registered in South Carolina.
To claim the credit, a taxpayer must maintain documentation of expenses and fill out South Carolina Form I-385 when filing their income tax return.
Documentation includes fuel receipt or credit card statements that show number of gallons purchased in South Carolina during the tax year and maintenance invoices showing the car model, amount, and type of preventative maintenance performed.
Fuel purchased and preventative maintenance performed outside of the state may not be used to determine the credit.
For more information, visit bit.ly/2zfmDcI