Search Federal and State Laws and Incentives

The South Carolina Clean Energy Industry Manufacturing Market Development Advisory Commission (Commission) will assist with the development of clean energy technologies, materials, and products, including advanced vehicle, alternative transportation fuel, battery manufacturing, and hydrogen fuel cell industries. The Commission issued a final report in September 2015, with a description and analysis of the existing clean energy manufacturing industry, job development potential, market potential, incentives offered by neighboring states, and recommendations for in-state production incentives, benchmarks to increase clean energy manufacturing, and marketing and public education programs. (Reference South Carolina Code of Laws 11-55-100)

State agencies purchasing motor vehicles must give preference to hybrid, plug-in hybrid electric, all-electric, biodiesel, hydrogen, fuel cell, or flexible fuel vehicles when the performance, quality, and anticipated life cycle costs are comparable to other available motor vehicles. (Reference South Carolina Code of Laws 1-11-310)

The South Carolina Energy Office (SCEO) provides low interest loans for a variety of energy efficiency improvements, including AFV conversions and incremental costs, with qualified project payback periods. Eligible recipients include state agencies, local governments, public colleges and universities, school districts, and private non-profit organizations. Private non-profit organizations and local government entities may be eligible for loans of up to 100% of eligible project costs ranging from $25,000 to $500,000 per state fiscal year. For state agencies and public educational institutions, SCEO will provide 70% of each project's funding as a loan and entities may also be eligible for ConserFund Plus grant of up to 30% project cost. For more information, see the ConserFund website. (Reference South Carolina Code of Laws 48-52-650)

A taxpayer that constructs and places into service a commercial facility for the production of biofuel is eligible for a tax credit of up to 25% of the cost of constructing or renovating a building and equipping the facility. Production of biofuel includes intermediate steps such as milling, crushing, and handling feedstock and the distillation and manufacturing of the final product. The entire credit must be taken in seven equal annual installments beginning with the taxable year in which the facility is placed into service. Qualifying fuels include liquid non-petroleum based fuel that can be placed in motor vehicle fuel tanks and used to operate on-road vehicles, including all forms of fuel commonly or commercially known or sold as biodiesel and ethanol. (Reference South Carolina Code of Laws 12-6-3610)

The South Carolina Business Development Corporation provides low interest loans for a variety of energy efficiency improvements, including AFV conversions and incremental costs, with qualified project payback periods. Eligible recipients include business and industries; utilities, non-profit organizations, and government entities may be eligible under special conditions. The loan may cover up to 100% of the project costs ranging from $50,000 to $1 million and must be repaid after one and one half times the projected payback period of the loan. No funding is currently available (verified July 2016). For more information, see the Energy Efficiency Revolving Loan website. (Reference South Carolina Code of Laws 48-52-650)

Terminal operators and other entities involved in the bulk transfer of gasoline or diesel, including suppliers and refiners, must offer all grades of petroleum products not already pre-blended with ethanol and biodiesel, and ensure that the motor fuel is suitable for subsequent blending with biofuels. Terminal operators and other bulk suppliers are not liable for fines, penalties, injuries, or damages resulting from subsequent blending of fuel sold at retail locations. Furthermore, no individual or entity can deny a distributor and retailer from blending biofuels for sale in South Carolina, as long as the individual or entity is registered with the U.S. Internal Revenue Service. (Reference South Carolina Code of Laws 39-41-235)

A taxpayer that purchases, constructs, or installs, and places into service a qualified commercial facility for distributing or dispensing biofuels is eligible for an income tax credit of up to 25% of the purchase, construction, and installation costs. Eligible property includes pumps, storage tanks, and related equipment used exclusively for distributing, dispensing, and storing biofuels. A qualified facility must clearly label the equipment used to store or dispense the fuel as being associated with the biofuel. The credit must be taken in three equal annual installments beginning with the taxable year in which the facility is placed into service. Qualifying fuels include blends containing at least 70% ethanol (E70) dispensed at the retail level for use in motor vehicles, and pure ethanol or biodiesel fuel dispensed by a distributor or facility that blends these non-petroleum liquids with gasoline or diesel fuel for use in motor vehicles. (Reference South Carolina Code of Laws 12-6-3610)