In 2008, the Energy Efficient Manufactured Homes Incentive Program was established under Section 48-52-870 of the South Carolina Code of Laws. It was passed to create more significant incentives for ENERGY STAR-certified manufactured homebuyers.

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 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.

To implement the program, the Energy Office worked with the South Carolina Department of Revenue and the MHISC to develop instructions for retailer 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 with ENERGY STAR Manufactured Homes National Program Requirements (PDF).

The Energy Office continues to work with the MHISC to raise awareness of the program and to encourage dealers to give the tax credit application and the site installation checklist to the buyer, thus increasing the likelihood the homebuyer will take advantage of the tax incentive.

Program Overview

• ENERGY STAR Homebuyer Income Tax Credit Flyer (PDF)
• ETC-53: Energy Efficient Manufactured Home Credit Application (PDF)
• ENERGY STAR Tax Incentive At-a-Glance Checklist (PDF)
• ENERGY STAR Manufactured Homes National Program Requirements (PDF)
• Sample ENERGY STAR Installation Checklist (PDF)

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.

2019 Program Impact

Data from the Systems Building Research Alliance, the entity which tracks ENERGY STAR manufactured homes for the federal government, indicates that approximately 1,375 ENERGY STAR homes were produced for sale or installation in South Carolina in 2019. The Alliance also reports that a total of 4,871 homes were shipped to the state by the end of 2019, meaning that ENERGY STAR homes shipped to South Carolina retailers represent approximately 28.2 percent of the market, a 16 percent increase from 2018.

Only 1,185 of the 2,135 ENERGY STAR manufactured homes produced for South Carolina retailers had been sited and certified by the end of 2018.

The Manufactured Housing Institute of South Carolina (MHISC) estimates the average sales tax for an ENERGY STAR manufactured home is $300. With the legislation eliminating the state sales tax of an ENERGY STAR certified manufactured home, it can be assumed that of the 1,375 ENERGY STAR homes that were produced for sale or installation in South Carolina, that South Carolinians saved $412,500 in state sales tax for 2019.

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

• Data on the Energy Efficient Manufactured Homes Incentive Program (XLS)
• Energy Efficient Manufactured Homes Incentive Program - 2023 Summary (PDF)
• Energy Efficient Manufactured Homes Incentive Program - 2022 Summary (PDF)
• Energy Efficient Manufactured Homes Incentive Program - 2021 Summary (PDF)
• Energy Efficient Manufactured Homes Incentive Program - 2020 Summary (PDF)
• Energy Efficient Manufactured Homes Incentive Program - 2019 Summary (PDF)
• 2018 Report on Implementation of Energy Efficient Manufactured Homes Incentive Program (PDF)
• 2017 Report on Implementation of Energy Efficient Manufactured Homes Incentive Program (PDF)
• 2016 Report on Implementation of Energy Efficient Manufactured Homes Incentive Program (PDF)
• 2015 Report on Implementation of Energy Efficient Manufactured Homes Incentive Program (PDF)
• 2014 Report on Implementation of Energy Efficient Manufactured Homes Incentive Program (PDF)
• 2013 Report on Implementation of Energy Efficient Manufactured Homes Incentive Program (PDF)

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.