Biomass Energy Tax Credit (Personal) (South Carolina)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place South Carolina

Name Biomass Energy Tax Credit (Personal)(South Carolina)
Incentive Type Personal Tax Credit
Applicable Sector Industrial
Eligible Technologies Anaerobic Digestion, Biomass, CHP/Cogeneration, Landfill Gas
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 25% of eligible costs

Carryover Provisions Excess credit may be carried forward for 15 years





Start Date 2007-01-01







Maximum Incentive $650,000










Program Administrator South Carolina Department of Revenue


Last DSIRE Review 2012-08-20
Last Substantive Modification
to Summary by DSIRE
2011-11-15


Incentive Source http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=SC60F&re=1&ee=1


Summary

In 2007 South Carolina enacted the Energy Freedom and Rural Development Act (S.B. 243), which amended previous legislation concerning a landfill methane tax credit. The original legislation, enacted in 2006, allows a 25% corporate tax credit for costs incurred by a taxpayer for the use of landfill methane gas to provide power for a manufacturing facility. The 2007 amendments provide that, for taxable years beginning after 2007, taxpayers are allowed a credit against the income tax and/or license fees for 25% of the costs incurred by the taxpayer for the purchase and installation of equipment used to create heat, power, steam, electricity or another form of energy for commercial use from a fuel consisting of at least 90% biomass resources.

In 2011, the South Carolina Department of Revenue [1] issued a private ruling that the tax credit could be applied to an individual's income taxes. Specifically, a limited liability company (LLC) utilizing the biomass tax credit is allowed to pass through the credit to the shareholders of an S Corporation owning 60% of the parent LLC, provided there are at least four shareholders and all are residents of South Carolina. Costs incurred by a taxpayer must be certified by the State Energy Office, in consultation with the South Carolina Department of Agriculture and the South Carolina Institute for Energy Studies, in order to qualify for the credit.

For taxable years beginning after 2007, the tax credit for all expenditures is limited to $650,000 per taxpayer year, and may not exceed 50% of a taxpayer's liability for that year. Unused credits may be carried forward for 15 years. For a fiscal year, all claims may not exceed $650,000 and must apply proportionately to all eligible claimants. To obtain the maximum amount of credit available, the taxpayer must submit a request for credit to the State Energy Office by January 31st for all qualifying equipment placed in service in the previous calendar year. The State Energy Office must notify the taxpayer that it qualifies for the credit and the amount of credit allocated to the taxpayer by March 1st of that year.

For purposes of this credit, a biomass resource means non-commercial wood, by-products of wood processing, demolition debris containing wood, agricultural waste, animal waste, sewage, landfill gas, and other organic materials, not including fossil fuels. "Commercial use" means a use intended for the purpose of generating a profit. A "manufacturing facility" means an establishment where tangible personal property is produced or assembled.


Incentive Contact

Contact Name Public Information
Department South Carolina Energy Office

Address 1200 Senate Street
Address 2 408 Wade Hampton Building
Place Columbia, South Carolina
Zip/Postal Code 29201
Phone (803) 737-8030
Phone 2 (800) 851-8899
Fax (803) 737-9846

Website http://www.energy.sc.gov/
     
     

Authorities (Please contact the if there are any file problems.)

Authority 1: S.C. Code § 12-6-3620
Date Effective 2007-01-01
Date Enacted 2006-06-22


Authority 2: S.C. Department of Revenue Ruling #11-6
Date Effective 2011-11-04


















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1.  "Database of State Incentives for Renewables and Efficiency (DSIRE)"