Bill > S0556

This bill establishes a tax credit for renewable natural gas (RNG) production in South Carolina, specifically targeting the conversion of landfill gas into high-quality biomethane. The bill defines RNG as natural gas derived from landfill gas with at least 90% methane concentration and provides a tax incentive for businesses investing in equipment to collect, process, and inject RNG into natural gas transmission pipelines. For tax years between 2026 and 2031, eligible taxpayers can claim a credit of 25% of their equipment purchase and installation costs, with a maximum annual credit of $5 million or 25% of total costs, whichever is less. To claim the credit, taxpayers must submit a request to the State Energy Office by January 31st for equipment placed in service in the previous calendar year, and the credit is nonrefundable but can be carried forward for up to 15 years or transferred to another eligible entity. The bill aims to encourage renewable energy development by providing financial incentives for businesses investing in RNG infrastructure, with the credit designed to offset income taxes or license fees, thereby promoting more sustainable energy practices.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=0556&session=126&summary=B