The bill S. 556 proposes the addition of Section 12-6-3830 to the South Carolina Code of Laws, establishing 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 nonrefundable but can be carried forward for up to fifteen years, and taxpayers can transfer the credit to eligible individuals or entities.

To qualify for the credit, taxpayers must have their costs certified by the State Energy Office and submit a request by January 31 for the previous calendar year's qualifying equipment. The bill outlines definitions for "commercial use," "equipment," and "renewable natural gas," ensuring clarity in the application of the tax credit. The Department of Revenue is authorized to require necessary documentation to administer the credit effectively. The act will take effect upon approval by the Governor.

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