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Alternative Fueling Infrastructure Tax Credit

An income tax credit is available for 25% of the cost to purchase, construct, and install qualified alternative fueling infrastructure. Qualified property includes equipment used to distribute, dispense, or store alternative fuel. Eligible fuels include natural gas and propane. The entire credit must be taken in three equal annual installments beginning with the taxable year in which the facility is placed into service. Unused credits may be carried forward for up to ten succeeding taxable years. A taxpayer may transfer the tax credit to eligible agencies after notifying the South Carolina Department of Revenue. This tax credit expires January 1, 2026. (Reference Senate Bill 1122, 2015)

Alternative Fuel Vehicle (AFV) Revolving Loan Program for Public Entities

The South Carolina Energy Office provides low interest loans for a variety of energy efficiency improvements, including AFV conversions and incremental costs, with qualified project payback periods. Eligible recipients include state agencies, local governments, public colleges and universities, school districts, and private non-profit organizations. The loan may cover up to 100% of eligible project costs ranging from $25,000 to $500,000 per state fiscal year. For more information, see the ConserFund website. (Reference South Carolina Code of Laws 48-52-650)

Alternative Fuel Vehicle (AFV) Revolving Loan Program for Private Entities

The South Carolina Business Development Corporation provides low interest loans for a variety of energy efficiency improvements, including AFV conversions and incremental costs, with qualified project payback periods. Eligible recipients include business and industries; utilities, non-profit organizations, and government entities may be eligible under special conditions. The loan may cover up to 100% of the project costs ranging from $50,000 to $1 million and must be repaid after one and one half times the projected payback period of the loan. For more information, see the Energy Efficiency Revolving Loan website. (Reference (Reference South Carolina Code of Laws 48-52-650)

Alternative Fuel Vehicle and Infrastructure Financing

The SouthCarolinaSAVES (SCSAVES) Green Community Program provides low cost financing to eligible government entities, institutions, and commercial and industrial entities for qualified conservation measures, including natural gas and propane vehicle conversions, incremental costs of eligible vehicles, and alternative fueling infrastructure. Financing is available for up to 100% of the project cost ranging from $500,000 to $5 million; projects must have a payback period of no more than 15 years. The low cost financing is made possible through Qualified Energy Conservation Bonds allocated by the South Carolina Energy Office and issued by the South Carolina Jobs-Economic Development Authority. For more information, see the SCSAVES (PDF) website.

Alternative Fuel Tax

Alternative fuels and blended fuels are exempt from the state sales and use tax. These fuels are, however, subject to a state fuels user fee of $0.16 per gallon. Alternative fuels include liquefied petroleum gas (propane) and compressed natural gas. Blended fuels are defined as mixtures composed of gasoline or diesel fuel and another liquid, other than products such as carburetor detergent or oxidation inhibitor, that can be used as a fuel to operate a highway vehicle. (Reference South Carolina Code of Laws 12-28-110, 12-28-310, and 12-36-2120(15))

Clean Energy Advisory Commission

The South Carolina Clean Energy Industry Manufacturing Market Development Advisory Commission (Commission) will assist with the development of clean energy technologies, materials, and products, including advanced vehicle, alternative transportation fuel, battery manufacturing, and hydrogen fuel cell industries. The Commission will provide an initial report by December 31, 2014, to the governor and the general assembly, with a description and analysis of the existing clean energy manufacturing industry, job development potential, market potential, incentives offered by neighboring states, and recommendations for in-state production incentives, benchmarks to increase clean energy manufacturing, and marketing and public education programs. The Commission must issue a final report by September 30, 2015. (Reference House Bill 3125, 2014, and South Carolina Code of Laws 11-55-100)

2016 Session - Proposed Legislation

HB-4328

Amends the motor fuel tax section of the code to include two separate definitions, one addressing CNG GGE (5.66 lb.) and another for LNG DGE (6.06 lb.). The section amends Section 12-28-110. The Act says that it is effective upon signing by governor. Reference - HB4328 Bill History, Reference - HB4328 Bill Text Status: Committee amendment adopted on Senate floor 4/7/16; introduced version did not address CNG or LNG; 4/14/16 House concurs to Senate amendments.

HB-4932

Includes up to 2,000 pound weight allowance for natural gas trucks. Reference - HB4932 Bill History, Reference - HB4932 Bill Text Status: amended 4/12/16 and passed House - amendments included natural gas weight allowance; enacted 5/25/16.

SB-982

Exempts natural gas from sales or use tax if the natural gas will be used to compress natural gas or cool natural gas. Effective July 1, 2016. Reference - SB982 Bill History, Reference - SB982 Bill Text Status: : to Finance Committee 1/13/15

SB-1075

Tax credits for natural gas vehicles and fueling infrastructure. CNG, LNG and LPG are included. Tax credits worth 25% of cost for infrastructure and 50% of incremental cost of vehicles, such to following limits: HD 26,001 and up $12K, dedicated less than 26,001 $8K, and bi-fuel less than 26,001 $6K. HD vehicles must be primarily fueled on alternative fuel which is defined as 90% or more. 2,000 pound weight exemption for wholly or partially fueled by alternative fuel vehicle. Exempts incremental cost from gross capital cost thereby reducing sales tax. Duration - 1/1/15 - 12/31/25. Reference - SB1075 Bill History, Reference - SB1075 Bill TextStatus: to Finance Committee, reported favorably with amendment on 3/23/16.

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2015 Session - Proposed Legislation

HB-3257

Exempts from sales and use tax cost of equipment used in production of electric or hybrid electric vehicles. Reference - HB3257 Bill History, Reference - HB3257 Bill Text

HB-3262

Imposes an additional 5 cent user fee on motor fuels consumed in the state as well as on motor carriers operating in the state. For years 2015 - 2021, individuals may claim a credit worth $50 if they have driven 5,000 miles in the state. Reference - HB3262 Bill History, Reference - HB3262 Bill Text

HB-3445

Imposes a user fee on all motor fuels in addition to current taxes. Fee is 7 cents and takes effective July 1, 2015 and expires July 2, 2020 if the wholesale price at that time is higher than 5 year average price. Reference - HB3445 Bill History, Reference - HB3445 Bill Text

HB-3836

Includes method of sale provision for CNG with GGE (5.66 lb.) and DGE (6.38) allowed and LNG with DGE (6.06 lb.) Exempts alternative fuels from the environmental impact fee imposed on motor fuels. Gross receipt exemption worth 30% of the cost of alternative fuel vehicles. Provides 2,000 lb. weight allowance for natural gas vehicles. Provides income tax credit for fueling infrastructure worth 25% of cost, and for new or converted heavy duty vehicle worth 50% of the incremental cost. Heavy duty credits are capped at $12K. For dedicated vehicles less than 26,001 lbs. the credit is worth $8K, and for bi-fuel vehicles that are not HDVs, the credit is worth $6K. Heavy duty means 26,001 lbs. GVWR or greater. Vehicles must operate on 90% or more natural gas. Adds LNG to the definition of alternative fuel. The tax credits are valid for 2015 to end of 2024. Reference - HB3836 Bill History, Reference - HB3836 Bill Text

HB-3838

Long bill makes changes to motor carrier registration requirements. Also includes the method of sale provision for CNG (GGE 5.66 lb. and DGE, 6.38 lb.) and LNG (DGE, 6.06 lb.) , GGE/DGE tax for CNG and DGE tax for LNG, 2,000 lb. weight allowance for natural gas vehicles, and 30% reduction in gross receipt tax for commercial natural gas vehicles. Reference - HB3838 Bill History, Reference - HB3838 Bill Text

SB-23

Amends motor fuel tax to apply current tax of 16 cents on LNG but on a diesel gallon equivalent basis. Effective date is July 1, 2015. Reference - SB23 Bill History, Reference - SB23 Bill Text

SB-27

Amends the motor fuel tax to increase the tax rate starting in 2016 at which time it would go from 16 to 18 cents and the increase by 2 cents each year thereafter through 2025 at which time it would be 36 cents. Reference - SB27 Bill History, Reference - SB27 Bill Text

SB-244

Authorizes local ballot measure to approve up to a 5 cent user fee on motor fuel retail sales in order to pay for road improvement projects. Includes all fuels and alternative fuels. Reference - SB244 Bill History, Reference - SB244 Bill Text

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2014 Session - Proposed Legislation

HB-4356

Authorizes local ballot measure to approve up to a 2 cent user fee on motor fuel retail sales in order to pay for road improvement projects. Includes all fuels and alternative fuels. Reference - HB4356 Bill History, Reference - HB4356 Bill Text Pending: House Ways and Means Committee

HB-4619

Provides tax credits for CNG and LNG and other alternative fuel vehicles: $500 less than 8,500 lbs. vehicles, $1000 8,501 - 13,999 lbs; $2,000 14,000 - 25,999 lbs., $5,000 if 26,000 lbs or greater. It actually is written so that a vehicle that is 26,000 lbs. does not qualify but that must be a mistake. Credits go into effect in 2015 and expire at end of 2021. New or converted vehicles with an EPA certificate of conformity qualify. Also provides state fleet purchasing preference for all types of alternative fuel vehicles and requires state to giver preference to alternative fuel school buses if such buses have comparable life cycle cost to other available buses. Reference - HB4619 Bill History, Reference - HB4619 Bill Text Pending: House Ways and Means Committee

HB-4957

Provides that CNG and LNG shall be taxed per GGE and DGE, respectively based on 5.66 lbs. and 6.06 lbs. Furthermore directs that CNG must be sold in GGE or DGE units (6.38 lbs.) and that LNG must be sold in DGE units. Also provides up to 2,000 lb. exemption on intrastate roadways for NGVs. And finally makes various changes to commercial vehicle fees. Reference - HB4957 Bill History, Reference - HB4957 Bill Text Pending: House Ways and Means Committee

SB-832

Would establish tax rate of $0.16 per DGE of LNG. A DGE would be defined as 6.06 pounds of LNG. Reference - SB832 Bill History, Reference - SB832 Bill Text Pending: Senate Finance Committee

SB-891

Amend the motor fuel tax so that it increases by 2 cents per year until it is increased from current level of 16 cents to 36 cents by 2023. Does not make other changes to the motor fuel tax. Reference - SB891 Bill History, Reference - SB891 Bill Text Pending: Senate Finance Committee

SB-1135

Companion to HB 4957. Reference - SB1135 Bill History, Reference - SB1135 Bill Text Pending: Senate Finance Committee

SB-402

Amends the current tax credits to remove language relating to now expired tax credits for certain alternative fuel vehicles and clarifies that the FCV credits expires when the federal tax credit for FCVs expires, which is at the end of 2014. Reference - SB402 Bill History, Reference - SB402 Bill Text Action: 2014-02-20 - Scrivener's error corrected

2013 Session - Proposed Legislation

HB-3432

Establishes a pilot program to study the use of biofuels and alternative fuels in public school buses. The project shall begin July 1, 2013 Reference - HB-3432 Bill History, Reference - HB-3432 Bill Text Pending: House Education and Public Works Committee

SB-149

Authorizes local ballot measure to approve up to a 2 cent user fee on motor fuel retail sales in order to pay for road improvement projects. Includes all fuels and alternative fuels.Reference - SB-149 Bill History, Reference - SB-149 Bill TextPending: Senate Finance Committee

HB-3498

Amends the state tax on motor fuels by increasing it from $0.16 to $0.26 but provides a refundable tax credit for every motor vehicle registered in SC so that the rate does not impact them as much. Refund is $26 per vehicle in 2013; $53 per vehicle in 2014 and 2015; l It also increases the tax in the future as wholesale price for motor fuel changes up or down. Tax on motor carriers also is similarly increased. Alternative fuels would be subject to the increase and the refund and receive no special treatment. Takes effect July 1, 2013 Reference - HB3498 Bill History, Reference - HB3498 Bill TextPending: House Ways and Means Committee

HB-3640

Increases the motor fuel taxes imposed on gasoline, diesel and alternative fuels, and motor carrier fuel; rates all increase from 16 cents to 21 cents. Reference - HB3640 Bill History, Reference - HB3640 Bill TextPending: House Ways and Means Committee

HB-3645

Increases the motor fuel taxes imposed on gasoline, diesel and alternative fuels, and motor carrier fuel; rates all increase from 16 cents to 21 cents. Also provides for future increases based on inflation factor. Reference - HB3645 Bill History, Reference - HB3645 Bill TextPending: House Ways and Means Committee

SB-402

Creates new tax credits for alternative fuel vehicles for tax years beginning after Dec. 31, 2013: 2014 - 2020. Credit value for CNG and LNG vehicles is as follows: 10% or $1,000 for new or converted vehicles less than 8,500 lbs., 10% or $5,000 for new or converted vehicles over 8,500 lbs. For conversions the 10% applies to cost of conversion. You have to apply for tax credits . Conversions must have an EPA certificate of conformity for the system used. For state fleets, the bill requires a plan for using more alternative fuel vehicles and also creates preference for buying alternative fuel vehicles when the life cycle cost are comparable to other vehicle; this also applies to school buses. Reference - SB402 Bill History, Reference - SB402 Bill TextReferred to Committee on Finance - Committee report: Majority favorable with amend., minority unfavorable Finance

SB-525

Modifies existing tax credits for fuel production. Previously the credits were limited to biofuels but now extends to fuels "derived from natural gas." Not sure if this is intended to extend to liquefaction facilities. Reference - SB525 Bill History, Reference - SB525 Bill TextReferred to Committee on Finance - Committee report: Majority favorable with amend., minority unfavorable Finance