H 4696 Session 110 (1993-1994)
H 4696 General Bill, By J.J. Bailey
Similar(S 1055)
A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
12-7-1254, 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.
02/08/94 House Introduced and read first time HJ-13
02/08/94 House Referred to Committee on Ways and Means HJ-13
A BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976,
BY ADDING SECTION 12-7-1254, 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 10, Chapter 7, Title 12 of the 1976 Code is
amended by adding:
"Section 12-7-1254. (A) A utility engaging in a project
removing overhead electric transmission or distribution lines and
replacing them with underground equipment or installing new
underground equipment is allowed a credit against any tax due pursuant
to Section 12-7-230 or Section 12-19-70 as provided 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."
SECTION 2. This act takes effect upon approval by the Governor.
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