Combined Heat and Power Partnership
Biomass Energy Tax Credit (Corporate)
| Date Last Updated | 11/16/2012 |
| Incentive Type | Tax |
| State/Federal | SC |
| Incentive Administrator/Contact Office | South Carolina Energy Office |
| Incentive Initiation Date | 1/1/2007 |
| Incentive Size and Funding Source | Taxpayers are allowed a credit against the income tax and/or license fees for 25% of the costs incurred by the purchase and installation by the taxpayer. For taxable years beginning after 2007, the tax credit for all expenditures is limited to $650,000 per taxpayer year, and may not exceed 50% of a taxpayer's liability for that year. Unused credits may be carried forward for 15 years. For a fiscal year, all claims may not exceed $650,000 and must apply proportionately to all eligible claimants. |
| Eligible Recipient | Tax credit can be applied to an individual's income taxes. A limited liability company (LLC) using the biomass tax credit is allowed to pass through the credit to the shareholders of an S Corporation owning 60% of the parent LLC, provided there are at least four shareholders and all are residents of South Carolina. |
| Eligible Fuel | Landfill Gas; Woody Biomass; Biogas |
| Eligible Project Size (MW) | Does Not Specify |
| Minimum Efficiency Required (%) | Does Not Specify |
| Other Selected Eligibility Criteria | Eligible equipment must be used to create heat, power, steam, electricity or another form of energy for commercial use from a fuel consisting of at least 90% biomass. For purposes of this credit, a biomass resource means non-commercial wood, by-products of wood processing, demolition debris containing wood, agricultural waste, animal waste, sewage, landfill gas and other organic materials, not including fossil fuels. "Commercial use" means a use intended for the purpose of generating a profit. |
| Other Incentive Details | Costs incurred by a taxpayer must be certified by the State Energy Office, in consultation with the South Carolina Department of Agriculture and the South Carolina Institute for Energy Studies. |
| Resource Website(s) |
