Current Status Bill Number:3921 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19950404 Primary Sponsor:Keyserling All Sponsors:Keyserling, Whatley and L. Whipper Drafted Document Number:JIC\5653HTC.95 Companion Bill Number:721 Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Alternative energy related activities, tax credit
Body Date Action Description Com Leg Involved
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House 19950404 Introduced, read first time, 30 HWM
referred to Committee
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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-7-1216 SO AS TO ALLOW CORPORATE INCOME TAX CREDITS FOR VARIOUS ALTERNATIVE ENERGY RELATED ACTIVITIES; AND TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES TAX EXEMPTIONS, SO AS TO REDUCE THE EXEMPTION ALLOWED FUEL AND ELECTRICITY USED IN MANUFACTURING, POWER GENERATION, TRANSPORTATION, MINING, AND QUARRYING, AND TO PROVIDE FOR THE USE OF THE REVENUE OF THE REDUCED EXEMPTIONS.
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 12-7-1216. (A) A corporation that constructs in this State a facility for the production of photovoltaic equipment is allowed a credit against its corporate income tax liability an amount equal to twenty-five percent of the installation and equipment costs of construction. This credit is not allowed to the extent that any of the costs of the equipment were provided by federal, state, or local government grants. To secure the credit allowed by this section, the taxpayer must own or control the facility at the time of construction. The credit allowed by this section may not exceed the tax liability of the corporation in the tax year for which the tax credit is provided. An unused amount of the credit allowed under this section may be carried over for the next succeeding five taxable years.
As used in this subsection `photovoltaic equipment' means those products designed, manufactured, and produced to convert sunlight directly into electricity.
(B) A corporation that constructs or installs solar energy equipment for the production of heat or electricity in the manufacturing or service processes of its business located in this State is allowed a credit against its corporate income tax liability an amount equal to twenty-five percent of the installation and equipment costs of the solar energy equipment. The credit allowed under this section may not exceed twenty-five thousand dollars for any single installation. This credit is not allowed to the extent that any of the costs of the equipment were provided by federal, state, or local government grants. To secure the credit allowed by this section, the taxpayer must own or control the business at the time the solar energy equipment is installed. The credit allowed by this section may not exceed the tax liability of the corporation or business in the taxable year for which the tax credit is provided. An unused amount of the credit allowed under this section may be carried over for the next succeeding three taxable years.
As used in this subsection `solar energy equipment' means equipment and materials designed to collect, store, transport, or control energy derived directly from the sun.
(C) A corporation that constructs in this State a facility for refueling or recharging vehicles propelled by natural gas, liquefied petroleum gas, or electricity is allowed a credit against its corporate income tax liability an amount equal to twenty-five percent of the installation and equipment costs of construction. Any corporation that installs equipment for refueling or recharging vehicles propelled by natural gas, liquefied petroleum gas, or electricity, at its refueling or recharging facility located in this State, is allowed a credit against its corporate income tax liability an amount equal to twenty-five percent of the installation and equipment costs. The credits allowed under this section may not exceed twenty-five thousand dollars for each fueling location. No credits are allowed to the extent that costs of the construction or equipment were provided by federal, state, or local government grants. To be eligible for the credits allowed by this section, the corporation must own or control the facility at the time of construction. The credits allowed by this section must not exceed the amount of the income tax liability of the corporation in the tax year for which the tax credit is provided. An unused amount of the credit allowed under this section may be carried over for the next succeeding five years.
(D) A corporation that purchases vehicles that can be propelled primarily by alternative fuels is allowed a credit against its corporate income tax liability an amount equal to fifteen percent of the purchase price of each vehicle. A corporation that converts existing petroleum-fueled vehicles to operate primarily on alternative fuels is allowed a credit against its corporate income tax liability an amount equal to twenty-five percent of the installation and equipment costs. The credits allowed by this section may not exceed seven thousand five hundred dollars an eligible vehicle purchased or converted in the tax year for which the tax credit is provided. An unused amount of the credit allowed under this section may be carried over for the next succeeding two years.
As used in this section `alternative fuel' means natural gas, liquefied petroleum gas, a fuel containing at least seventy percent ethanol, or a fuel containing at least seventy percent methanol, and electricity."
SECTION 2. Items (9) and (19) of Section 12-36-2120 of the 1976 Code, as added by Act 612 of 1990, are amended to read:
"(9) eighty percent of the gross proceeds of sales, or sales price of coal, or coke or other fuel sold to manufacturers, electric power companies, and transportation companies for:
(a) use or consumption of the production of by-products;
(b) the generation of heat or power used in manufacturing tangible personal property for sale. For purposes of this item `manufacturer' or `manufacturing' includes the activities of a processor;
(c) the generation of electric power or energy for use in manufacturing tangible personal property for sale; or
(d) the generation of motive power for transportation. For the purposes of this exemption, `manufacturer' or `manufacturing' includes the activities of mining and quarrying;.
Fifty percent of the revenue from the sales and use tax on the taxable portion of sales pursuant to this item must be credited to a fund in the State Treasury, separate and distinct from the general fund of the State, styled the `Recycling Industry Incentive Fund' to be used by the Department of Commerce to provide incentives for industries using post-consumer recycled materials to locate in this State. The balance 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;
(19) eighty percent of the gross proceeds of sale, or sale price of electricity used by manufacturers, miners, or quarriers to manufacture, mine, or quarry tangible personal property for sale. For purposes of this item, `manufacturer' or `manufacture' includes the activities of processors;. Revenues from the taxable portion of these sales must be credited as provided in item (9) of this section, mutatis mutandis, and the taxable portion of these sales are not subject to the tax imposed pursuant to Chapter 10 of Title 4;"
SECTION 3. This section takes effect July 1, 1995.