South Carolina Code allows a taxpayer a tax credit for purchasing, constructing, installing and placing in service in the State eligible property that is used for distribution, dispensing, or storing alternative fuel at a new or existing commercial fuel distribution or dispensing facility in South Carolina. The credit is equal to 25% of the cost of purchasing, constructing and installing the eligible property. The credit must be taken in three equal annual installments beginning with the tax year the property is placed in service. If in one of the years the credit installment accrues the property used for distributing, dispensing, or storing renewable fuel is disposed of or taken out of service and is not replaced, the credit expires and the taxpayer may not take any remaining installment of the credit.
“Taxpayer” means any sole proprietor, partnership, corporation of any classification, limited liability company, or association taxable as a business entity. Also, the word taxpayer includes the State or any agency or instrumentality, authority, or political subdivision, including municipalities.
“Eligible property” includes any pump, compressor, storage tank, or related equipment that is directly and exclusively used for distribution, dispensing, or storing alternative fuel. The equipment must be labeled for this purpose and clearly identified as associated with alternative fuel.
“Alternative fuel” means compressed natural gas, liquified natural gas, or liquefied petroleum gas, dispensed for use in motor vehicles and compressed natural gas, liquified natural gas, or liquefied petroleum gas, dispensed by a distributor or facility.
General provisions relating to the above credits are summarized below:
1. Any unused portion of the unexpired credit may be carried forward for 10 tax years.
2. These credits are claimed on Form TC-59, “Alternative Fuel Property Credit.”
3. A taxpayer who claims any other credit for the cost of purchasing, constructing and installing property at the facility, may not claim this credit for the same costs.
4. The State or any agency or instrumentality, authority or political subdivision, including municipalities, may transfer the credit, but if the entity transfers the credit, it must notify the Department of Revenue of the transfer.
NOTE: This credit is only available for property or facilities placed in service before January 1, 2026.