Energy Efficient Manufactured Homes Incentive Program - for homes purchased before 7/1/2024

In 2008, the General Assembly established the Energy Efficient Manufactured Homes Incentive Program under Section 48-52-870 of the South Carolina Code of Laws, to further incentivize the purchase of ENERGY STAR-certified manufactured homes.

This incentive includes a $750 nonrefundable state income tax credit for eligible homebuyers. In addition, Section 12-26-2110 eliminates state sales tax on ENERGY STAR-certified manufactured homes (but not optional furniture or drapes) from July 1, 2009, to July 1, 2020. Act 138 of 2020 extended this incentive through July 1, 2024. Manufactured homes purchased after July 1, 2024, are not eligible for this incentive.

The State Energy Office worked with the South Carolina Department of Revenue and the Manufactured Housing Institute of South Carolina (MHISC) to develop instructions for retailers and a tax credit application form for homebuyers. It is important to note that retailers who sell ENERGY STAR manufactured homes are required to certify that energy-saving measures have been installed in accordance ENERGY STAR Manufactured Homes National Program Requirements (PDF).

Program Overview

Consumers that purchase a manufactured home that meets the criteria should mail the following completed documents to the Energy Office:

  • Completed ENERGY STAR Manufactured Home Credit Application
  • A copy of the Bill of Sale
  • A copy of the ENERGY STAR Site Installation Checklist (received from the retailer)

If approved, the approved form and supporting documents will be mailed back to the consumer. The approved form must be submitted with paper tax forms or retained with other tax documents by electronic filers.

100% Sales Tax Exemption

Consumers that have purchased an eligible ENERGY STAR manufactured home will not be charged the $300 sales tax. They may be charged up to $80 for appliances, but the entire $300 sales tax will not be applicable. Buyers of homes that do not meet the energy-efficient criteria would pay an additional two percent in state sales tax. Consumers do not need to apply or provide any information to the Energy Office for this sales tax incentive.

Steps for Manufacturers to Take 

  1. Retailers which sell ENERGY STAR manufactured homes are required to certify that energy-saving measures have been installed in accordance with guidance.
  2. The retailer is required to return this certification to the manufacturer of the home.
  3. The manufacturer files the certification with the entity responsible for tracking ENERGY STAR homes sales nationally, on behalf of the EPA and DOE.
  4. The retailer that sold the ENERGY STAR home supplies the home buyer with the Energy Office’s Energy Efficient ENERGY STAR Manufactured Home $750 Tax Credit Application Form.

Steps for Homeowners to Take 

  1. The home buyer must complete the application form and provide it to the Energy Office.
  2. The Energy Office reviews the application form, ensure the home buyers has received the ENERGY STAR certification and/or the site installation checklist meets ENERGY STAR Manufactured Homes National Program Requirements.
  3. The Energy Office signs and returns the application form to the home buyer.
  4. The home buyer(s) must include these documents in their tax filing to claim the $750 state income tax credit.

ENERGY STAR Manufactured Homes Standards

In 2001, The US Department of Energy (USDOE) and the US Environmental Protection agency (EPA) created standards for ENERGY STAR manufactured homes, which are at least 15 percent more energy efficient than homes meeting the minimum energy code. In general, ENERGY STAR qualified homes include features and appliances that makes them as much as 30 percent more efficient than most recently constructed manufactured or site-built homes. Factors contributing to increased efficiency include the following:

  • Effective insulation in walls and floors
  • High-performance windows, including protective coatings and improved frame assemblies
  • Tight construction and ducts so that cracks and holes are sealed to reduce drafts, dust, and moisture problems
  • High- efficiency heating and cooling equipment
  • ENERGY STAR-qualified lighting and appliances

The Energy Office maintains a Savings & Benefits Matrix, developed in 2011, to track, calculate, and report various impact metrics requested by the US DOE, including fuel-specific energy savings, fuel specific energy production, energy cost savings and environmental impacts.

Archived EE Manufactured Homes Data, Reports and Summaries

  1. Calculations are based on the most recent US Energy Information Agency data (2015) for residential energy use based on square footage of homes. The South Carolina Energy Office made the very conservative assumption that the ENERGY STAR home would save only 15 percent of the energy used by the average home of approximately the same square footage.
  2. Cost savings are based on an average cost per kilowatt-hours of electricity as reported by the US Energy Information Agency.
  3. The expected lifetime of a new manufactured home is conservatively estimated at 30 years based on information supplied by the Systems Building Research Alliance.
  4. Calculations are based on an estimated 143.47 pounds of CO2 emitted per MMBtu of energy used.