The bill S. 556 proposes to amend the South Carolina Code of Laws by adding Section 12-6-3830, which establishes a tax credit for the production of renewable natural gas (RNG). This credit is aimed at taxpayers who incur costs for the purchase and installation of equipment used to convert landfill gas into RNG for commercial purposes. The bill defines key terms such as "commercial use," "equipment," and "renewable natural gas," and specifies that the tax credit will be available for taxable years beginning after 2025 and ending before 2032. Taxpayers can claim a credit of 25% of their qualifying expenses, which must be certified by the State Energy Office, and can carry forward unused credits for up to 15 years.

Additionally, the bill outlines the process for taxpayers to apply for the credit, requiring them to submit a request to the State Energy Office by January 31 for equipment placed in service in the previous calendar year. The credit is nonrefundable, with a cap of 25% or $5 million per taxable year, whichever is less, and it can be transferred to other eligible taxpayers. The Department of Revenue is authorized to request necessary documentation to administer the credit. The act will take effect upon approval by the Governor.

Statutes affected:
04/15/2025: 12-6-3830
Latest Version: 12-6-3830