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COMMITTEE REPORT
May 21, 2008
S. 1141
Introduced by Senators McConnell, Rankin, Martin, Leventis, Peeler, Alexander, Hayes, Setzler, Hutto, Ceips, Knotts and Malloy
S. Printed 5/21/08--H.
Read the first time April 30, 2008.
To whom was referred a Bill (S. 1141) to amend Section 12-36-2110, Code of Laws of South Carolina, 1976, relating to the calculation of tax on manufactured homes, so as to refine the, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, starting on page 3, line 14, by deleting SECTION 3 and inserting:
/ SECTION 3. Section 12-6-3587 of the 1976 Code is amended to read:
"(A) There is allowed as a tax credit against the income tax liability of a taxpayer imposed by this chapter an amount equal to twenty-five percent of the costs incurred by the taxpayer in the purchase and installation of a solar energy system or small hydropower system for heating water, space heating, air cooling, energy-efficient daylighting, heat reclamation, energy-efficient demand response, or the generation of electricity in or on a facility in South Carolina and owned by the taxpayer. The tax credit allowed by this section must not be claimed before the completion of the installation. The amount of the credit in any year may not exceed three thousand five hundred dollars for each facility or fifty percent of the taxpayer's tax liability for that taxable year, whichever is less. If the amount of the credit exceeds three thousand five hundred dollars for each facility, the taxpayer may carry forward the excess for up to ten years.
(B) 'System' includes all controls, tanks, pumps, heat exchangers, and other equipment used directly and exclusively for the solar energy system. The term 'system' does not include any land or structural elements of the building such as walls and roofs or other equipment ordinarily contained in the structure. No A credit shall may not be allowed for a solar system unless the system is certified for performance by the nonprofit Solar Rating and Certification Corporation or a comparable entity endorsed by the State Energy Office.
(C) For purposes of this section, 'small hydropower system' means new generation capacity on a nonimpoundment or on an existing impoundment that:
(1) meets licensing standards as defined by the Federal Energy Regulatory Commission (FERC);
(2) is a run-of-the-river facility with a capacity not to exceed 5MW; or
(3) consists of a turbine in a pipeline or in an irrigation canal."
Renumber sections to conform.
Amend title to conform.
HARRY F. CATO for Committee.
TO AMEND SECTION 12-36-2110, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CALCULATION OF TAX ON MANUFACTURED HOMES, SO AS TO REFINE THE DEFINITION OF A MANUFACTURED HOME THAT IS SUBJECT TO A MAXIMUM SALES TAX BECAUSE IT MEETS CERTAIN ENERGY EFFICIENCY STANDARDS; AND TO AMEND CHAPTER 52, TITLE 48, BY ADDING ARTICLE 10 SO AS TO ESTABLISH AN INCENTIVE PROGRAM FOR THE PURCHASE AND INSTALLATION OF ENERGY EFFICIENT MANUFACTURED HOMES IN SOUTH CAROLINA.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-36-2110(B) of the 1976 Code is amended to read:
"(B) For the sale of a manufactured home, as defined in Section 40-29-20, the tax is calculated as follows:
(1) subtract trade-in allowance from the sales price;
(2) multiply the result from item (1) by sixty-five percent;
(3) if the result from item (2) is no greater than six thousand dollars, multiply by five percent for the amount of tax due;
(4) if the result from item (2) is greater than six thousand dollars, the tax due is three hundred dollars plus two percent of the amount greater than six thousand dollars.
However, a manufactured home is exempt from any tax that may be due above in excess of three hundred dollars that may be due as a result of the calculation in item (4) if it meets these energy efficiency levels: storm or double pane glass windows, insulated or storm doors, a minimum thermal resistance rating of the insulation only of R-11 for walls, R-19 for floors, and R-30 for ceilings. However, variations in the energy efficiency levels for walls, floors, and ceilings are allowed and the exemption on tax due above three hundred dollars applies if the total heat loss does not exceed that calculated using the levels of R-11 for walls, R-19 for floors, and R-30 for ceilings. The edition of the American Society of Heating, Refrigerating, and Air Conditioning Engineers Guide in effect at the time is the source for heat loss calculation. Notwithstanding the provisions of this subsection, from July 1, 2009, to July 1, 2019, a manufactured home is exempt from any tax that may be due as a result of the calculation in this subsection if it has been designated by the United States Environmental Protection Agency and the United States Department of Energy as meeting or exceeding each agency's energy saving efficiency requirements or has been designated as meeting or exceeding such requirements under each agency's ENERGY STAR program. The dealer selling the manufactured home must maintain records, on forms provided by the State Energy Office, on each manufactured home sold contains the above calculations and verifying whether or not the manufactured home met that meets the energy efficiency levels provided for in this subsection. These records must be maintained for three years and must be made available for inspection upon request of the Department of Consumer Affairs or the State Energy Office.
The maximum tax authorized by this subsection does not apply to a single-family modular home regulated pursuant to Chapter 43, Title 23."
SECTION 2. Chapter 52, Title 48 of the 1976 Code is amended by adding:
Section 48-52-870. (A)The Energy Efficient Manufactured Homes Incentive Program is established to provide financial incentives for the purchase and installation of energy efficient manufactured homes in South Carolina. Any person who purchases a manufactured home designated by the United States Environmental Protection Agency and the United States Department of Energy as meeting or exceeding each agency's energy saving efficiency requirements or which has been designated as meeting or exceeding such requirements under each agency's ENERGY STAR program from a retail dealership licensed by the South Carolina Manufactured Housing Board for use in this State is eligible for a nonrefundable income tax credit equal to seven hundred fifty dollars. The credit may be claimed beginning July 1, 2009, and no later than July 1, 2019.
(B) The South Carolina Energy Office shall adopt rules pursuant to develop tax credit applications and administer the issuance of tax credits and must track and report on the fiscal and energy impacts of this program."
SECTION 3. Section 12-6-3587(A) of the 1976 Code is amended to read:
"(A) There is allowed as a tax credit against the income tax liability of a taxpayer imposed by this chapter an amount equal to twenty-five percent of the costs incurred by the taxpayer in the purchase and installation of a solar energy system for heating water, space heating, air cooling, or energy efficiency standards such as demand response, daylighting and heat reclaim systems, or the generation of electricity in or on a facility in South Carolina and owned by the taxpayer. The tax credit allowed by this section must not be claimed before the completion of the installation. The amount of the credit in any year may not exceed three thousand five hundred dollars for each facility or fifty percent of the taxpayer's tax liability for that taxable year, whichever is less. If the amount of the credit exceeds three thousand five hundred dollars for each facility, the taxpayer may carry forward the excess for up to ten years."
SECTION 4. This act takes effect July 1, 2009.
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