Reference is to the bill as introduced.
Amend the bill, and if amended, by striking SECTIONS 1, 2, and 3 beginning on page 2, and inserting:
/ SECTION 1. Article 3, Chapter 1, Title 13 of the 1976 Code is amended by adding:
"Section 13-1-390.
(A) In addition to those advisory
councils that may be established by the Secretary of Commerce
pursuant to Section 13-1-40, there is established within the
division a Clean Energy Industry Manufacturing Market
Development Advisory Council to assist in the development of
clean energy technology, materials, and products manufactured in
this State.
(B) The council is
composed of fourteen members. The Secretary of the South
Carolina Department of Commerce or the secretary's designee and
the Director of the State Energy Office or the director's
designee shall serve on the council and the Secretary of
Commerce shall appoint one member representative from each of
the following:
(1)
advanced vehicle technology industry;
(2)
alternative transportation fuels industry;
(3)
battery manufacturing industry;
(4)
biomass energy industry;
(5)
energy efficiency industry;
(6)
higher education research institution's incubation and
business development department;
(7)
hydroelectric component manufacturing industry;
(8)
hydrogen storage or fuel cell industry;
(9)
solar manufacturing industry;
(10)
SC Technical College System's clean energy workforce
development department;
(11)
utility industry; and
(12)
wind components manufacturing industry.
(C) Appointed members
of the council shall serve for terms of four years and until a
successor is appointed and qualified. Terms of members
initially appointed expire after June 30, 2017. Appointed
members serve at the pleasure of their appointing authority and
without compensation or expenses. The functions of the council
are advisory to the State. Vacancies must be filled in the
manner of original appointment for the unexpired portion of the
term. (D) The
chairman must be designated by the Secretary of Commerce and the
council shall select its own vice chairman and adopt those
procedures necessary for its operations. The council shall meet
at least once annually and at the call of the chair or at the
request of a majority of the members. A majority of the members
constitutes a quorum to do business. The State Energy Office and
the South Carolina Department of Commerce, if necessary, shall
provide the necessary staff and administrative facilities and
services to the council.
(E) Not later than
October 31, 2014, the council shall provide to the Governor and
the General Assembly an initial report which must include, at a
minimum, the following:
(1)
a description and analysis of this state's existing clean
energy manufacturing industry;
(2)
an analysis of job development potential for clean energy
manufacturing in this State;
(3)
an analysis of market potential in this State, in other
states, or in foreign countries for technology, materials, and
products manufactured by a clean energy industry from this
State;
(4)
recommendations for actions which may be taken to provide
incentives for manufacturing of clean energy technology,
materials, and products from this State;
(5)
recommendations on categories of clean energy markets that
should be developed in this State and benchmarks to increase
clean energy manufacturing in this State; and
(6)
recommendations for marketing and public education
programs that should be implemented by economic development
entities to provide information to the public and to business
and industry on the benefits of investment in the clean energy
manufacturing industry in this State.
(F) Following its
initial report, the council shall submit to the Governor and to
the General Assembly by the end of each calendar year an annual
report on the clean energy manufacturing industry activities in
this State which must include, at a minimum, the following:
(1)
revisions which the advisory council determines are
necessary to its initial and subsequent reports;
(2)
a description and analysis of the clean energy
manufacturing industry in this State and growth of the industry
during the preceding year;
(3)
recommendations regarding policies that could be
implemented to achieve growth in the clean energy manufacturing
industry in this State; and
(4)
any other recommendations, including tax and economic
development incentives, to facilitate the development of the
clean energy manufacturing industry in this State."
SECTION 2. Section 12-6-3588 of the 1976 Code, as added by Act 290 of 2010, is amended to read:
"Section 12-6-3588.
(A) The General Assembly has
determined to enact the 'South Carolina
Renewable Clean Energy Tax Incentive
Program' as contained in this section to encourage business
investment that will produce high quality employment
opportunities and enhance this State's position as a center for
production and use of renewable clean
energy products. The program accomplishes this goal by
providing tax incentives to companies in the solar, wind,
geothermal, hydrogen, energy storage, and energy
efficiency and other renewable energy
industries who which are expanding or
locating in South Carolina.
(B) As used in this
section:
(1)
'Capital investment' means an expenditure to acquire,
lease, or improve property that is used in operating a business,
including land, buildings, machinery, and fixtures.
(2)
'Manufacturing' means fabricating, producing, or
manufacturing raw or unprepared materials into usable products,
imparting new forms, qualities, properties, and combinations.
Manufacturing does not include generating electricity for
off-site consumption.
(3)
'Qualifying investment' means investment in land,
buildings, machinery, and fixtures for expansion of an existing
facility or establishment of a new facility in this State.
Qualifying investment does not include relocating an existing
facility in this State to another location in this State without
additional capital investment.
(4)
'Renewable Clean energy
operations' are limited to manufacturers of systems
and or components that are used or
useful in manufacturing renewable or
operation of clean energy equipment for the generation,
storage, testing and research and development, and transmission
or distribution of electricity from renewable
clean energy sources, including specialized packaging for
the renewable clean energy equipment
manufactured at the facility. A clean energy operation does
not include generating electricity for off-site consumption.
(C) A business or
corporation meeting the requirements of this section
beginning in 2010 is eligible to receive a ten
percent nonrefundable income tax credit of the
cost of the company's total qualifying investments in plant and
equipment in this State for renewable
clean energy operations.
(D) The business or
corporation must shall:
(1)
manufacture renewable clean energy
systems and or components in South
Carolina for solar, wind, geothermal, hydrogen, energy
storage, or energy efficiency or other renewable
energy uses in order to be eligible for the tax credit
authorized by this section;
(2)
invest at least five hundred fifty
million dollars in a Tier IV county; at least one hundred
million dollars in a Tier III county; at least one hundred fifty
million dollars in a Tier II county; and at least two hundred
million dollars in a Tier I county according to the county
ranking and designation system as provided pursuant to Section
12-6-3360(B) in the year the tax credit is claimed in new
qualifying plant and equipment; and
(3)
have created at least one and
one-half full-time job for every five hundred
thousand one million dollars of capital
investment qualifying for the credit that each pays at least one
hundred twenty-five percent of this State's average annual
median wage as defined by the Department of Commerce.
(E) The income tax
credit program is allowed for up to sixty
months for a five-year period beginning
with the first month for which the business or corporation is
eligible to receive the credit January 1,
2010, and ending no later than December 31,
2015 2020.
(F) A taxpayer may
separately qualify for new facilities in separate locations or
for separate expansions of existing facilities located in this
State.
(G) A taxpayer's total
credit for all expenditures allowed pursuant to this section
must not exceed five hundred thousand dollars for any year and
five million dollars total for all years. Unused credits may be
carried forward for fifteen years after the tax year in which a
qualified expenditure was made. The credit is nonrefundable.
(H) To obtain the
amount of the credit available to a taxpayer, each taxpayer
shall notify the Department of Revenue and the Department of
Commerce, in writing, of its intention to claim the tax credit.
The Department of Revenue shall determine the proof necessary to
meet the requirements of subsection (D)(1) and (2).
Expenditures qualifying for a the
tax credit allowed by this section must be certified by the
State Energy Office Department of
Revenue. The State Energy Office
Department of Revenue may consult with appropriate state
and federal officials on standards for certification.
(I)
To obtain the amount of the credit available to a
taxpayer, Each taxpayer
must shall submit a request for the
credit to the State Energy Office Department
of Revenue by January thirty-first for qualifying expenses
incurred in the previous calendar year and the State
Energy Office Department of Revenue must notify
the taxpayer that the submitted expenditures qualify for the
credit and the amount of credit allocated to such taxpayer by
March first of that year. A taxpayer may claim the maximum
amount of the credit for its taxable year which contains the
December thirty-first of the previous calendar year.
(I) To obtain
the amount of the credit available to a taxpayer, the
Department of Commerce also must certify to the
State Energy Office Department of
Revenue that the taxpayer has met the job creation
requirements of subsection (D)(3). (J) The
credits authorized by this section are in lieu of any other
applicable income tax credits or abatements allowed by state
law, and in the event of an overlap or conflict in available
credits or abatements to a taxpayer, the taxpayer must select
the credit or abatement
he the taxpayer
desires in the manner prescribed by the Department of Revenue to
the extent the credits or abatements conflict or overlap."
SECTION 3. Section 12-6-3600 of the 1976 Code, as last amended by Act 261 of 2008, is further amended to read:
"Section 12-6-3600.
(A)(1) For taxable years beginning
after 2006, and before 2017 2020, there
is allowed a credit against the tax imposed pursuant to this
chapter for any corn-based ethanol or soy-based
biodiesel liquid fuel production
facility which is in production at the rate of at least
twenty-five percent of its name plate design capacity for the
production of corn-based ethanol or soy-based
biodiesel liquid fuel, before
denaturing, on or before December 31, 2011
2015. The credit equals twenty cents a gallon of
corn-based ethanol or soy-based
biodiesel liquid fuel produced and is
allowed for sixty months beginning with the first month for
which the facility is eligible to receive the credit and ending
not later than December 31, 2016 2019.
The taxpayer is eligible to claim the credit after the facility
has six consecutive months of operation at an average production
rate of at least twenty-five percent of its name plate design
capacity. In the first taxable year in which the taxpayer is
eligible to claim the credit, the taxpayer may claim the credit
for the first six months it met the requirements in addition to
qualifying production during its current taxable year.
(2)
For taxable years beginning after 2006, and before
2017 2020, there is allowed a credit
against the tax imposed pursuant to this chapter for an
ethanol a liquid fuel production facility using
a feedstock other than corn or a biodiesel facility
using a feedstock other than soy oil which is in
production at the rate of at least twenty-five percent of its
name plate design capacity for the production of ethanol
or biodiesel liquid fuel, before denaturing, on
or before December 31, 2011 2015. The
credit equals thirty cents a gallon of noncorn
ethanol or nonsoy oil
biodiesel liquid fuel produced and is
allowed for up to sixty months beginning with the first month
for which the facility is eligible to receive the credit and
ending no later than December 31, 2016
2019. The taxpayer is eligible to claim the credit after
the facility has six consecutive months of operation at an
average production rate of at least twenty-five percent of its
name plate design capacity. In the first taxable year in which
the taxpayer is eligible to claim the credit, the taxpayer may
claim the credit for the first six months it met the
requirements in addition to qualifying production during its
current taxable year.
(3)
Any unused credit may be carried forward for ten years.
(B) As used in this
section:
(1)
'Liquid fuel' means any fuel that will power an
internal combustion engine and is derived from algae,
cellulose, corn, natural gas, soy, used oil, waste oil, or
yellow grease and used as a substitute for gasoline or diesel
fuel. Liquid fuel as defined in this item does not include
fuels derived from crude tall oil. Ethanol
facility" means a plant or facility primarily engaged in
the production of ethanol or ethyl alcohol derived from
renewable and sustainable bioproducts used as a substitute for
gasoline fuel. (2)
'Liquid fuel production facility' means a plant
or facility primarily engaged in the production of liquid fuel
as defined in this section.
Biodiesel
facility" means a plant or facility primarily engaged in
the production of plant- or animal-based fuels used as a
substitute for diesel fuel. (3)
'Name plate design capacity' means the original
designed capacity of
an ethanol or biodiesel
a liquid fuel production facility. Capacity may be
specified as bushels of grain ground or gallons of
ethanol or biodiesel liquid fuel
produced a year.
(C)(1) Beginning
January 1, 2017 2020, an ethanol
or biodiesel a liquid fuel production facility
must receive a credit against the tax imposed by this chapter in
the amount of seven and one-half cents a gallon of
ethanol or biodiesel liquid fuel, before
denaturing, for new production for a period not to exceed
thirty-six consecutive months.
(2)
For purposes of this subsection, 'new production' means
production which results from a new facility, a facility which
has not received credits before 2017
2020, or the expansion of the capacity of an existing
facility by at least two million gallons first placed into
service after 2016 2019, as certified by
the design engineer of the facility to the State Energy Office.
(3)
For expansion of the capacity of an existing facility,
'new production' means annual production in excess of twelve
times the monthly average of the highest three months of
ethanol or biodiesel liquid fuel
production at an ethanol or biodiesel a
liquid fuel production facility during the twenty-four-month
period immediately preceding certification of the facility by
the design engineer.
(4)
Credits are not allowed pursuant to this subsection for
expansion of the capacity of an existing facility until
production is in excess of twelve times the three-month average
amount determined pursuant to this subsection during any
twelve-consecutive-month period beginning no sooner than January
1, 2017 2020.
(5)
The amount of a credit granted pursuant to this section
based on new production must be approved by the State Energy
Office based on the ethanol or biodiesel
liquid fuel production records as may be necessary to
reasonably determine the level of new production.
(D)(1) The credits
described in this section are allowed only for ethanol
or biodiesel liquid fuel produced at a plant in
this State at which all fermentation, distillation, and
dehydration takes place. Credit is not allowed for
ethanol or biodiesel liquid fuel
produced or sold for use in the production of distilled spirits.
(2)
Not more than twenty-five million ten
million gallons of ethanol or biodiesel
liquid fuel produced annually at an ethanol or
biodiesel a liquid fuel production facility is
eligible for the credits in subsections (A) and (B) of this
section, and the credits only may be claimed by a producer for
the periods specified in subsections (A) and (B) of this
section.
(3)
Not more than ten million gallons of ethanol or
biodiesel liquid fuel produced during a
twelve-consecutive-month period at an ethanol or
biodiesel a liquid fuel production facility is
eligible for the credit described in subsection (C) of this
section, and the credit only may be claimed by a producer for
the periods specified in subsection (C) of this section.
(4)
Not more than one hundred twenty-five
fifty million gallons of ethanol or
biodiesel liquid fuel produced at an
ethanol or biodiesel a liquid fuel production
facility by the end of the sixty-month period set forth in
subsection (A) or (B) of this section is eligible for the credit
under the subsection. An ethanol or
biodiesel A liquid fuel production facility
which receives a credit for ethanol or
biodiesel liquid fuel produced under subsection
(A) or (B) of this section may not receive a credit pursuant to
subsection (C) of this section until its eligibility to receive
a credit under subsection (A) or (B) of this section has been
completed.
(E) The State Energy
Office shall prescribe an application form and procedures for
claiming credits under this section.
(F) For purposes of
ascertaining the correctness of the credit allowed pursuant to
this section, the State Energy Office or the department may
examine or cause to have examined, by any agent or
representative designated for that purpose, any books, papers,
records, or memoranda bearing upon these matters.
(G)
Notwithstanding the credit amount allowed by this
section, for Fiscal Year 2008-2009, all claims made pursuant to
this section must not exceed eight hundred thousand dollars and
must apply proportionately to all eligible claimants.
(H)(1)
To obtain the maximum amount of the credit
available to a taxpayer, each taxpayer must submit a request for
credit to the State Energy Office by January thirty-first for
all gallons of qualifying fuel produced in the previous calendar
year and 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 first of that year. A taxpayer may
claim the maximum credit for its taxable year which contains the
December thirty-first of the previous calendar year. The
Department of Revenue may require any documentation that it
deems necessary to administer the credit.
(2)
For the state's fiscal year
beginning July 1, 2008, the maximum amount of credit is to be
determined based on an eighteen-month period beginning July 1,
2008, through December 31, 2009. Applications are to be made by
January 31, 2010, for the previous eighteen-month period
commencing July 1, 2008, and ending December 31, 2009. A
taxpayer allocated a credit for this eighteen-month period may
claim the credit for its tax year which contains December 31,
2009.
(3) To the
extent the maximum amount of the credit contained in this
section is repealed, the elimination of the maximum amount shall
be seen as the last expression of the legislature and to the
extent any language in this act conflicts with that repeal, it
shall be considered null and void." /
Renumber sections to conform.
Amend title to conform.