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. Specifically, the bill allows a tax credit of twenty-five percent of these costs for taxable years beginning after 2025 and ending before 2032. The credit is subject to certification by the State Energy Office and can be claimed in the year the equipment is placed in service, covering all related expenditures.

Additionally, the bill stipulates that a taxpayer can utilize up to twenty-five percent or five million dollars of the credit in a single taxable year, whichever is less. The tax credit is nonrefundable but allows for unused credits to be carried forward for fifteen years. Taxpayers must submit requests for the credit to the State Energy Office by January 31 for qualifying equipment placed in service in the previous calendar year, and the Department of Revenue may require necessary documentation for administration purposes. The act will take effect upon approval by the Governor.

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