S 1055 General Bill, By Passailaigue

Similar(H 4696)
 A Bill to amend Article 13, Chapter 7, Title 12, Code of Laws of South
 Carolina, 1976, by adding Section 12-7-1255, so as to provide a tax credit for
 electric utilities to convert overhead electric transmission or distribution
 lines to underground service and to install new electric underground service
 for the beautification or conservation of the environment.

   01/19/94  Senate Introduced and read first time SJ-6
   01/19/94  Senate Referred to Committee on Finance SJ-6

A BILL

TO AMEND ARTICLE 13, CHAPTER 7, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, BY ADDING SECTION 12-7-1255, SO AS TO PROVIDE A TAX CREDIT FOR ELECTRIC UTILITIES TO CONVERT OVERHEAD ELECTRIC TRANSMISSION OR DISTRIBUTION LINES TO UNDERGROUND SERVICE AND TO INSTALL NEW ELECTRIC UNDERGROUND SERVICE FOR THE BEAUTIFICATION OR CONSERVATION OF THE ENVIRONMENT.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Article 13, Chapter 7, Title 12 of the 1976 Code is amended by adding:

"Section 12-7-1255. (A) A utility engaging in a project to remove overhead electric transmission or distribution lines and to replace them with underground equipment or to install new underground equipment is allowed a credit against any tax due pursuant to Section 12-7-230 or Section 12-19-70 as set forth in this section.

(B) Expenses that qualify as underground service project costs are as follows:

(a) costs incurred in the engineering design, conversion, and removal of existing overhead electric transmission and distribution lines;

(b) acquisition costs, including obtaining permits, easements, and purchasing land for the construction of new or existing underground service; and

(c) all other direct construction costs for improving existing or building new underground service projects.

(C) The amount of the credit is equal to twenty-five percent of the total qualifying underground service project costs listed in subsection (B).

(D) The credit can be claimed for the taxable year when any underground service project is placed in service.

(E) To the extent that this credit applies to the cost of certain property, the depreciable basis of the property for South Carolina income tax purposes must be reduced by the amount of the credit claimed with respect to the property.

(F) A regulated utility shall account for this credit in the same manner and with the same ratemaking requirements as is the requirement for the investment tax credit under Section 46 of the Internal Revenue Code of 1986, as amended."

SECTION 2. This act takes effect upon approval by the Governor.