Archives > 1976 South Carolina Code of Laws - Previous Versions > 2007 Session > Title 12

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Title 12 - Taxation

CHAPTER 63.

ENERGY FREEDOM AND RURAL DEVELOPMENT ACT

SECTION 12-63-10. Citation of chapter.

This chapter may be cited as the "Energy Freedom and Rural Development Act".

SECTION 12-63-20. Sales tax rebates on purchase of ecologically friendly vehicle; incentive payment for alternative fuel purchase and production of electricity or methane gas.

(A)(1) A sales tax rebate must be applied to a vehicle purchase beginning after June 30, 2008, and ending before July 1, 2013, as follows:

(a) three hundred dollars for an in-state purchase or lease of a Flex-Fuel Vehicle (FFV), which is capable of operating on E85 motor fuel. An eligible vehicle for each model year is a model identified by the manufacturer as being a flexible-fuel vehicle capable of operating on E85 motor fuel. E85 motor fuel is a fuel comprised of eighty-five percent ethanol fuel and fifteen percent gasoline fuel;

(b) three hundred dollars for an in-state purchase or lease of a hydrogen-fueled vehicle and an advanced lean-burn vehicle. A hydrogen-fueled vehicle and an advanced lean-burn vehicle is a vehicle classified by the United States Department of Energy as a hydrogen-fueled vehicle or lean-burn vehicle;

(c) three hundred dollars for an in-state purchase or lease of a hybrid vehicle, an electric vehicle, and a plug-in hybrid vehicle. A hybrid vehicle is defined as a hybrid gasoline-electric vehicle that is partially powered by a large on-board battery. An electric vehicle is defined as having at least three wheels, uses a large on-board battery or electrical storage device, and is rated for more than thirty-five miles per hour and approved for use by the United States Department of Transportation for use on United States highways (excludes neighborhood electric vehicles (NEVs)). A plug-in hybrid vehicle is a vehicle classified by the United States Department of Energy as a hybrid vehicle capable of being propelled by both a gasoline-fueled internal combustion engine and an electric motor powered by a battery that can be recharged by being plugged into an external source of electricity;

(d) three hundred dollars for the in-state purchase or lease of a high fuel-economy vehicle with a city fuel-economy rating by the United States Environmental Protection Agency (EPA) of thirty miles a gallon or higher; and

(e) not more than five hundred dollars for the purchase of equipment for conversion of a conventional hybrid electric vehicle to a plug-in hybrid electric vehicle or for the in-state purchase of EPA-certified equipment for conversion of conventional vehicles to operate on propane, compressed natural gas, liquefied natural gas, hydrogen, or E85 (eighty-five percent ethanol and fifteen percent gasoline).

(2) The rebates allowed pursuant to this subsection must be in the form of a payment sent to the buyer upon completion of a form created by the Department of Revenue and made available to the public, dealers, and the Department of Motor Vehicles.

(3) The rebates allowed pursuant to this subsection shall be phased in at twenty percent a year until the rebate equals three hundred dollars for subitems (a) through (d) of subsection (A)(1) and five hundred dollars for subitem (e) of subsection (A)(1). The amount of rebate that a person may claim is limited to the amount of rebate in effect for the year in which the vehicle was purchased or converted, whichever is applicable.

(B)(1) An incentive payment for an alternative fuel purchase is provided beginning after June 30, 2009, and ending before July 1, 2012, and shall be provided from the general fund, excluding revenue derived from the sales and use tax as follows:

(a) five cents to the retailer for each gallon of E70 fuel or greater sold provided that the ethanol-based fuel is subject to the South Carolina motor fuel user fee;

(b) twenty-five cents to the retailer for each gallon of pure biodiesel fuel sold so that the biodiesel in the blend is at least two percent B2 or greater, provided that the qualified biodiesel content fuel is subject to the South Carolina motor fuel user fee. Biodiesel fuel is a fuel for motor vehicle diesel engines comprised of vegetable oils or animal fats and meeting the specifications of the American Society of Testing and Materials (ASTM) D6751; and

(c) twenty-five cents to the retailer or wholesaler for each gallon of pure biodiesel fuel sold as dyed diesel fuel for "off-road" uses, so that the biodiesel in the blend is at least two percent B2 or greater.

(2) The payments allowed pursuant to this subsection must be made to the retailer upon compliance with verification procedures set forth by the Department of Agriculture.

(C)(1) An incentive payment for production of electricity or methane gas fuel is provided beginning after June 30, 2008, and ending before July 1, 2018, and shall be provided from the general fund, excluding revenue derived from the sales and use tax as follows:

(a) One cent per kilowatt-hour (kwh) for electricity produced from biomass resources in a facility not using biomass resources before June 30, 2008, or facilities which produce at least twenty-five percent more electricity from biomass resources than the greatest three-year average before June 30, 2008, up to a maximum of one hundred thousand dollars per year per taxpayer for five years. The rebate is applicable to energy from a qualifying facility placed in service and first producing energy on or after July 1, 2008, and extends for five years, ending on July 1, 2013, or, if later, five years from the date the facility was placed in service and first produced electricity. In no case shall the rebate apply after June 30, 2018.

(b) Nine cents per therm for methane gas fuel produced from biomass resources in a facility not using biomass resources before June 30, 2008, or facilities which produce at least twenty-five percent more methane gas from biomass resources than the greatest three-year average before June 30, 2008, up to a maximum of one hundred thousand dollars per year per taxpayer for five years. The rebate is applicable to energy from a qualifying facility placed in service and first producing energy on or after July 1, 2008, and extends for five years, and ending before July 1, 2013, or, if later, five years from the date the facility was placed in service and first produced electricity. In no case shall the rebate apply after June 30, 2018.

(2) For purposes of this subsection, a biomass resource means wood, wood waste, agricultural waste, animal waste, sewage, landfill gas, and other organic materials.

(D) The Department of Revenue may prescribe forms and procedures, issue policy documents, and distribute funds as necessary to ensure the orderly and timely implementation of the provisions of this section. The Department of Revenue shall coordinate with the Department of Agriculture as necessary.

(E) Notwithstanding the incentive amounts provided pursuant to this section:

(1) for a fiscal year all claims made pursuant to subsection (A)(1)(a) of this section must not exceed 2,050,000 dollars and must apply proportionately to all eligible claimants;

(2) for a fiscal year all claims made pursuant to subitems (b) through (e) of subsection (A)(1) of this section must not exceed 2.1 million dollars and must apply proportionately to all eligible claimants; and

(3) for a fiscal year all claims made pursuant to subsections (B) and (C) of this section must not exceed 2.1 million dollars and must apply proportionately to all eligible claimants.

SECTION 12-63-30. Biodiesel fuel at state-owned diesel fueling facilities.

A state-owned diesel fueling facility shall provide fuel containing at least five percent biodiesel fuel in all diesel pumps.