Matching Grant Tax Credits

Amounts paid by the homeowner in connection with a matching grant qualify for the credits.
The homeowner receives a matching SC Safe Home grant of $3,000 and pays the matching funds of $3,000. The $3,000 paid by the homeowner for qualifying fortification measures can be used to calculate the credits. The amount of credit for the fortification measures under S.C. Code Section 12-6-3660 would be $3,000 X 25% = $750.
The grant funds cannot be used to claim the credit unless the homeowner is required to include those funds in income on the homeowner’s individual income tax return. If the grant funds were included in the homeowner’s income for income tax purposes, the taxpayer could claim a credit under S.C. Code Section 12-6-3660 for $1,000 ($6,000 X 25% = $1,500; limited to a maximum credit of $1,000).