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Combined Heat and Power Partnership

Biomass Energy Tax Credit (Corporate)

Date Last Updated11/16/2012
Incentive TypeTax
State/FederalSC
Incentive Administrator/Contact OfficeSouth Carolina Energy Office
Incentive Initiation Date1/1/2007
Incentive Size and Funding SourceTaxpayers 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 RecipientTax 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 FuelLandfill Gas; Woody Biomass; Biogas
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required (%)Does Not Specify
Other Selected Eligibility CriteriaEligible 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 DetailsCosts 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.
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