(A)(1) For taxable years beginning after 2006, and before 2017, there is allowed a credit against the tax imposed pursuant to this chapter for any corn-based ethanol or soy-based biodiesel facility which is in production at the rate of at least twenty-five percent of its name plate design capacity for the production of corn-based ethanol or soy-based biodiesel, before denaturing, on or before December 31, 2011. The credit equals twenty cents a gallon of corn-based ethanol or soy-based biodiesel produced and is allowed for sixty months beginning with the first month for which the facility is eligible to receive the credit and ending not later than December 31, 2016. The taxpayer is eligible to claim the credit after the facility has six consecutive months of operation at an average production rate of at least twenty-five percent of its name plate design capacity. In the first taxable year in which the taxpayer is eligible to claim the credit, the taxpayer may claim the credit for the first six months it met the requirements in addition to qualifying production during its current taxable year.
(2) For taxable years beginning after 2006, and before 2017, there is allowed a credit against the tax imposed pursuant to this chapter for an ethanol facility using a feedstock other than corn or a biodiesel facility using a feedstock other than soy oil which is in production at the rate of at least twenty-five percent of its name plate design capacity for the production of ethanol or biodiesel, before denaturing, on or before December 31, 2011. The credit equals thirty cents a gallon of noncorn ethanol or nonsoy oil biodiesel produced and is allowed for up to sixty months beginning with the first month for which the facility is eligible to receive the credit and ending no later than December 31, 2016. The taxpayer is eligible to claim the credit after the facility has six consecutive months of operation at an average production rate of at least twenty-five percent of its name plate design capacity. In the first taxable year in which the taxpayer is eligible to claim the credit, the taxpayer may claim the credit for the first six months it met the requirements in addition to qualifying production during its current taxable year.
(3) Any unused credit may be carried forward for ten years.
(B) As used in this section:
(1) "Ethanol facility" means a plant or facility primarily engaged in the production of ethanol or ethyl alcohol derived from renewable and sustainable bioproducts used as a substitute for gasoline fuel.
(2) "Biodiesel facility" means a plant or facility primarily engaged in the production of plant- or animal-based fuels used as a substitute for diesel fuel.
(3) "Name plate design capacity" means the original designed capacity of an ethanol or biodiesel facility. Capacity may be specified as bushels of grain ground or gallons of ethanol or biodiesel produced a year.
(C)(1) Beginning January 1, 2017, an ethanol or biodiesel facility must receive a credit against the tax imposed by this chapter in the amount of seven and one-half cents a gallon of ethanol or biodiesel, before denaturing, for new production for a period not to exceed thirty-six consecutive months.
(2) For purposes of this subsection, "new production" means production which results from a new facility, a facility which has not received credits before 2017, or the expansion of the capacity of an existing facility by at least two million gallons first placed into service after 2016, as certified by the design engineer of the facility to the State Energy Office.
(3) For expansion of the capacity of an existing facility, "new production" means annual production in excess of twelve times the monthly average of the highest three months of ethanol or biodiesel production at an ethanol or biodiesel facility during the twenty-four-month period immediately preceding certification of the facility by the design engineer.
(4) Credits are not allowed pursuant to this subsection for expansion of the capacity of an existing facility until production is in excess of twelve times the three-month average amount determined pursuant to this subsection during any twelve-consecutive-month period beginning no sooner than January 1, 2017.
(5) The amount of a credit granted pursuant to this section based on new production must be approved by the State Energy Office based on the ethanol or biodiesel production records as may be necessary to reasonably determine the level of new production.
(D)(1) The credits described in this section are allowed only for ethanol or biodiesel produced at a plant in this State at which all fermentation, distillation, and dehydration takes place. Credit is not allowed for ethanol or biodiesel produced or sold for use in the production of distilled spirits.
(2) Not more than twenty-five million gallons of ethanol or biodiesel produced annually at an ethanol or biodiesel facility is eligible for the credits in subsections (A) and (B) of this section, and the credits only may be claimed by a producer for the periods specified in subsections (A) and (B) of this section.
(3) Not more than ten million gallons of ethanol or biodiesel produced during a twelve-consecutive-month period at an ethanol or biodiesel facility is eligible for the credit described in subsection (C) of this section, and the credit only may be claimed by a producer for the periods specified in subsection (C) of this section.
(4) Not more than one hundred twenty-five million gallons of ethanol or biodiesel produced at an ethanol or biodiesel facility by the end of the sixty-month period set forth in subsection (A) or (B) of this section is eligible for the credit under the subsection. An ethanol or biodiesel facility which receives a credit for ethanol or biodiesel produced under subsection (A) or (B) of this section may not receive a credit pursuant to subsection (C) of this section until its eligibility to receive a credit under subsection (A) or (B) of this section has been completed.
(E) The State Energy Office shall prescribe an application form and procedures for claiming credits under this section.
(F) For purposes of ascertaining the correctness of the credit allowed pursuant to this section, the State Energy Office or the department may examine or cause to have examined, by any agent or representative designated for that purpose, any books, papers, records, or memoranda bearing upon these matters.
(G) Notwithstanding the credit amount allowed by this section, for Fiscal Year 2008-2009, all claims made pursuant to this section must not exceed eight hundred thousand dollars and must apply proportionately to all eligible claimants.
(H)(1) To obtain the maximum amount of the credit available to a taxpayer, each taxpayer must submit a request for credit to the State Energy Office by January thirty-first for all gallons of qualifying fuel produced in the previous calendar year and the State Energy Office must notify the taxpayer that it qualifies for the credit and the amount of credit allocated to the taxpayer by March first of that year. A taxpayer may claim the maximum credit for its taxable year which contains the December thirty-first of the previous calendar year. The Department of Revenue may require any documentation that it deems necessary to administer the credit.
(2) For the state's fiscal year beginning July 1, 2008, the maximum amount of credit is to be determined based on an eighteen-month period beginning July 1, 2008, through December 31, 2009. Applications are to be made by January 31, 2010, for the previous eighteen-month period commencing July 1, 2008, and ending December 31, 2009. A taxpayer allocated a credit for this eighteen-month period may claim the credit for its tax year which contains December 31, 2009.
(3) To the extent the maximum amount of the credit contained in this section is repealed, the elimination of the maximum amount shall be seen as the last expression of the legislature and to the extent any language in this act conflicts with that repeal, it shall be considered null and void.
HISTORY: 2006 Act No. 386, Section 36.A, eff June 14, 2006; 2007 Act No. 83, Sections 14.A and 14.B, eff June 19, 2007; 2008 Act No. 261, Section 3.A, eff May 29, 2008.
Structure South Carolina Code of Laws
Chapter 6 - South Carolina Income Tax Act
Section 12-6-20. Administration and enforcement of chapter.
Section 12-6-40. Application of federal Internal Revenue Code to State tax laws.
Section 12-6-50. Internal Revenue Code sections specifically not adopted by State.
Section 12-6-510. Tax rates for individuals, estates, and trusts for taxable years after 1994.
Section 12-6-515. State individual income tax bracket reduction.
Section 12-6-520. Annual adjustments to individual state income tax brackets; inflation adjustments.
Section 12-6-530. Corporate income tax.
Section 12-6-535. Small business trust taxed at highest rate.
Section 12-6-540. Income tax rates for exempt organizations and cooperatives.
Section 12-6-550. Corporations exempt from taxes imposed by Sections 12-6-530 and 12-6-540.
Section 12-6-560. Computation of resident individual's gross, adjusted gross, and taxable income.
Section 12-6-580. Computation of corporation's gross and taxable income.
Section 12-6-590. Treatment of "S" corporations for tax purposes; shareholders.
Section 12-6-600. Taxation of partnerships.
Section 12-6-610. Computation of gross and taxable income of resident estate or trust.
Section 12-6-630. Taxation of entities not specified or excluded.
Section 12-6-640. Use of monies appropriated to Commissioners of Pilotage.
Section 12-6-1120. Gross income; computation; modifications.
Section 12-6-1130. Taxable income; computation; modifications.
Section 12-6-1140. Deductions from individual taxable income.
Section 12-6-1160. Dependent deduction for resident individual.
Section 12-6-1171. Military retirement income deduction; definitions; surviving spouse.
Section 12-6-1175. Wages paid to unauthorized alien; business expense deduction disallowed.
Section 12-6-1220. Individual Development Account.
Section 12-6-1610. Definitions.
Section 12-6-1630. Taxation of distributions or at death of account owner.
Section 12-6-1710. Taxation of part-year resident.
Section 12-6-2230. Allocation of income not allocated under Section 12-6-2220.
Section 12-6-2240. Apportionment of all income remaining after allocation.
Section 12-6-2252. Allocation and apportionment of business income.
Section 12-6-2280. Sales factor; definitions.
Section 12-6-2295. Items included and excluded from terms "sales" and "gross receipts".
Section 12-6-2850. Definitions.
Section 12-6-3360. Job tax credit.
Section 12-6-3362. Small business jobs tax credit; alternate method.
Section 12-6-3376. Income tax credit for plug-in hybrid vehicle.
Section 12-6-3377. Hybrid, fuel cell, alternative fuel or lean burn motor vehicle tax credit.
Section 12-6-3378. Tax credits for certain agribusinesses and service-related facilities.
Section 12-6-3380. Tax credit for child and dependent care expenses.
Section 12-6-3381. Premarital preparation course tax credit; form.
Section 12-6-3385. Income tax credit for tuition; definitions.
Section 12-6-3400. Credit for income tax paid by South Carolina resident to another state.
Section 12-6-3410. Corporate income tax credit for corporate headquarters.
Section 12-6-3415. Tax credit for research and development expenditures.
Section 12-6-3420. Tax credit for construction or improvement of infrastructure project.
Section 12-6-3440. Tax credit for employee child care programs.
Section 12-6-3460. Definitions.
Section 12-6-3465. Recycling facility tax credits.
Section 12-6-3470. Employer tax credit.
Section 12-6-3477. Apprentice income tax credit.
Section 12-6-3480. Tax credits.
Section 12-6-3500. Retirement plan credits.
Section 12-6-3530. Community development tax credits.
Section 12-6-3550. Voluntary cleanup activity tax credit; eligibility requirements.
Section 12-6-3570. Motion picture related income tax credit claims.
Section 12-6-3575. Health insurance tax credits.
Section 12-6-3582. Income tax credits; agricultural use of anhydrous ammonia.
Section 12-6-3585. Industry Partnership Fund tax credit.
Section 12-6-3589. Tax credit for effluent toxicity testing.
Section 12-6-3590. Credit for milk producer; promulgation of regulations.
Section 12-6-3600. Credit for ethanol and biodiesel facilities.
Section 12-6-3610. Credit for property used for distribution or dispensing renewable fuel.
Section 12-6-3620. Purchase and installation of equipment to produce energy from biomass resources.
Section 12-6-3622. Fire sprinkler system tax credits.
Section 12-6-3630. Income tax credits; hydrogen research contributions.
Section 12-6-3631. Biodiesel expenditures tax credit.
Section 12-6-3632. Earned income tax credit.
Section 12-6-3660. Tax credit for costs of retrofitting to make residence more hurricane resistant.
Section 12-6-3670. Credit for excess premium paid for property and casualty insurance.
Section 12-6-3695. Alternative fuel property income tax credit.
Section 12-6-3750. Nonrefundable tax credit for processing donated deer for charitable distribution.
Section 12-6-3775. Solar energy tax credits.
Section 12-6-3780. Credit for preventative maintenance.
Section 12-6-3790. Educational Credit for Exceptional Needs Children's Fund.
Section 12-6-3795. South Carolina housing tax credit.
Section 12-6-3800. Income tax credit for service as a preceptor.
Section 12-6-3920. Extension for filing and paying estimated taxes.
Section 12-6-4410. Taxable years.
Section 12-6-4420. Method of accounting.
Section 12-6-4430. "S" corporation elections.
Section 12-6-4910. Persons, corporations, and other entities required to make tax returns.
Section 12-6-4920. Interstate motor carrier required to file return.
Section 12-6-4930. Tax return of estate or trust; by whom to be made.
Section 12-6-4940. Trust institutions maintaining common trust fund must make tax return; contents.
Section 12-6-4950. Information returns.
Section 12-6-4970. Time to file returns.
Section 12-6-4980. Extension of time for filing return.
Section 12-6-5010. Release of claim to personal exemption by custodial parent.
Section 12-6-5030. Composite returns for partnership or "S" corporation.
Section 12-6-5050. Tax preparer's taxpayer identification number.
Section 12-6-5095. Rounding to nearest whole dollar on tax returns.
Section 12-6-5510. Certificate of compliance as prima facie evidence.
Section 12-6-5540. Copies of returns; verification of information on returns.
Section 12-6-5550. State income tax refund as belonging to surviving spouse.
Section 12-6-5570. Authority to make expenditures.
Section 12-6-5580. Failure to do an act deemed committed in person's county of residence.
Section 12-6-5590. Donative intent; requirements; determining factors.
Section 12-6-5595. Timber deeds as real property conveyances.
Section 12-6-5600. Residency of individuals and businesses; boundary clarification.