S 720 Session 111 (1995-1996)
S 0720 General Bill, By Leventis
Similar(H 3918)
A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
12-7-1217 so as to provide state individual income tax credits for qualified
residential renewable energy source expenditures, qualified residential energy
efficiency expenditures, and for the purchase of motor vehicles using
alternative fuels; and to amend Section 12-36-2120, as amended, relating to
sales tax exemptions, so as to remove the total exemption for residential use
electricity and natural gas and provide for limited taxation on these items
and to provide for the crediting of the revenue.
04/11/95 Senate Introduced and read first time SJ-13
04/11/95 Senate Referred to Committee on Finance SJ-13
A BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA,
1976, BY ADDING SECTION 12-7-1217 SO AS TO PROVIDE
STATE INDIVIDUAL INCOME TAX CREDITS FOR
QUALIFIED RESIDENTIAL RENEWABLE ENERGY SOURCE
EXPENDITURES, QUALIFIED RESIDENTIAL ENERGY
EFFICIENCY EXPENDITURES, AND FOR THE PURCHASE OF
MOTOR VEHICLES USING ALTERNATIVE FUELS; AND TO
AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO
SALES TAX EXEMPTIONS, SO AS TO REMOVE THE TOTAL
EXEMPTION FOR RESIDENTIAL USE ELECTRICITY AND
NATURAL GAS AND PROVIDE FOR LIMITED TAXATION
ON THESE ITEMS AND TO PROVIDE FOR THE CREDITING
OF THE REVENUE.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Article 10, Chapter 7, Title 12 of the 1976 Code
is amended by adding:
"Section 12-7-1217. (A) A taxpayer is allowed a state
individual income tax credit equal to twenty-five percent of the
purchase price up to a maximum credit of one thousand dollars a
residential unit of all qualified residential renewable energy source
expenditures as defined in this section.
`Qualified residential renewable energy source expenditure'
means an expenditure made on or after July 1, 1995, by the
taxpayer for renewable energy source property installed in
connection with a residential building:
(1) which is located in the State;
(2) which is used by the taxpayer, or his tenants in a
landlord/tenant relationship, for residential purposes, or which is
constructed by the taxpayer to be used for residential purposes by
the buyer.
`Qualified residential renewable energy source expenditure'
includes expenditures for solar energy equipment for water heating,
space heating or cooling, or electricity, wood stove, or closed-loop
groundwater heat pumps which meet performance criteria
established by the Department of Revenue and Taxation in
consultation with the State Energy Office.
Renewable energy source expenditures in a newly constructed
home are not eligible if the home is not built in accordance with the
most recent Model Energy Code approved by the Council of
American Building Officials.
(B) A taxpayer is allowed a state individual income tax credit
equal to twenty-five percent of the purchase price up to a maximum
credit of one thousand dollars a residential unit of all qualified
residential energy efficiency expenditures as defined in this section.
`Qualified residential energy efficiency expenditure' means an
expenditure made on or after July 1, 1995, by the taxpayer for
renewable energy source property installed in connection with a
residential building:
(1) which is located in the State;
(2) which is used by the taxpayer, or his tenants in a
landlord/tenant relationship, for residential purposes, or which is
constructed by the taxpayer to be used for residential purposes by
the buyer.
`Qualified residential energy efficiency expenditure' includes
expenditures for insulation; an energy-saving automatic setback
thermostat; caulking or weatherstripping of exterior doors and
windows; or an energy control or monitoring device.
Energy efficiency expenditures in a newly constructed home are
not eligible if the home is not built in accordance with the most
recent Model Energy Code approved by the Council of American
Building Officials.
(C) A taxpayer is allowed a state individual income tax credit
equal to fifteen percent of the purchase price of a vehicle which can
be propelled primarily by an alternative fuel, or twenty-five percent
of the installation and equipment costs of converting a vehicle so
that it can be propelled primarily by an alternative fuel.
As used in this subsection `alternative fuel' means natural gas,
liquefied petroleum gas, any fuel containing at least seventy percent
ethanol, any fuel containing at least seventy percent methanol, and
electricity."
SECTION 2. Section 12-36-2120(33) of the 1976 Code, as
added by Act 612 of 1990, is amended to read:
"(33) electricity, natural gas, fuel oil, kerosene, LP gas,
coal, or any other combustible heating material or substance used
for residential purposes. Individual sales of kerosene of twenty
gallons or less by retailers are considered used for residential
heating purposes. In the case of electricity consumed in
excess of one thousand five hundred kilowatt hours and natural gas
consumed in excess of one hundred therms in any one monthly
billing cycle, the exemption allowed by this item extends only to
sixty percent of the gross proceeds of sales or sales price of the
electricity and natural gas. Revenue from the taxable portion of
electricity and natural gas sales must be credited to the general fund
of the State. The taxable portions of these sales are not subject to
the tax imposed pursuant to Chapter 10 of Title 4;"
SECTION 3. This act takes effect July 1, 1995, and in the case
of sales of electricity and natural gas, applies beginning with the
first monthly billing cycle beginning after June 30, 1995.
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