South Carolina Incentives and Laws for Hydrogen Fuel Cells
The list below contains summaries of all South Carolina incentives and laws related to Hydrogen Fuel Cells.
State Incentives
Battery Manufacturing Tax Incentives
For taxation purposes, the taxable fair market value of manufacturing machinery and equipment purchased for use at a renewable energy manufacturing facility may be reduced by 20% of the original cost. Qualified renewable energy manufacturing facilities include those manufacturing batteries for hybrid electric, fuel cell, or other motor vehicles certified by the South Carolina Energy Office. Qualified facilities must invest at least $100 million in the project and create at least 200 new full-time jobs with an average compensation level of 150% of the annual per capita income in South Carolina or the county where the facility is located, whichever is less. Qualified facilities may also claim job development tax credits for employee relocation expenses through July 1, 2014. Additional restrictions apply. (Reference South Carolina Code of Laws 12-6-3377, 12-10-30, 12-10-80, 12-15-20, 12-15-30, 12-37-930)
Fuel Cell Vehicle Tax Credit
South Carolina residents that claim the federal fuel cell vehicle tax credit are eligible for a state income tax credit equal to 20% of the federal credit. If the amount of the state credit exceeds the taxpayer's liability for the applicable tax year, any unused portion of the credit may be carried forward and claimed for up to five additional years. (Reference South Carolina Code of Laws 12-6-3377)
Hydrogen Infrastructure Development Grants
The South Carolina Research Authority administers the South Carolina Hydrogen Infrastructure Development Fund, which provides funding for grants that promote the development and deployment of hydrogen production, storage, distribution, and dispensing infrastructure and related products and services that enable the growth of hydrogen and fuel cell technologies in the state. Taxpayers may receive a 25% credit against state income taxes, insurance premium taxes, and certain license fees for contributions made to the fund. (Reference South Carolina Code of Laws 11-46)
Hydrogen and Fuel Cell Tax Exemption
The following are exempt from state sales tax: 1) any device, equipment, or machinery operated by hydrogen or fuel cells; 2) any device, equipment, or machinery used to generate, produce, or distribute hydrogen and designated specifically for hydrogen or fuel cell applications; and 3) any device, equipment, or machinery used predominantly for manufacturing, or research and development involving hydrogen or fuel cell technologies. (Reference South Carolina Code of Laws 12-36-2120(71))
Laws and Regulations
Hydrogen Fueling Infrastructure Permitting and Safety
Individuals or entities must submit an application and pay a $10 fee to the State Fire Marshall or a certified designee before renovating or constructing a facility to store or dispense hydrogen fuel. The State Fire Marshall must ensure that the state laws governing hydrogen fueling infrastructure are executed faithfully; require compliance with nationally recognized fire prevention and protection standards for hydrogen fueling infrastructure; develop training and certification requirements for county and municipal officials to grant permits for hydrogen fueling infrastructure; develop minimum requirements for the design, construction, location, installation, and operation of equipment for storing, handling, and dispensing hydrogen; and perform random inspections of licensed fueling infrastructure. When a codes and standards organization that is certified by the American National Standards Institute develops a standard procedure for training and certifying officials for permitting on hydrogen fueling infrastructure, the State Fire Marshall may adopt this procedure. (Reference South Carolina Code of Laws 23-9-20 and 23-9-510 through 23-9-570)
State Agency Preference for Alternative Fuel and Advanced Vehicles
State agencies purchasing motor vehicles must give preference to hybrid, plug-in hybrid electric, biodiesel, hydrogen, fuel cell, or flexible fuel vehicles when the performance, quality, and anticipated lifecycle costs are comparable to other available motor vehicles. (Reference South Carolina Code of Laws 1-11-310)
State Agency Alternative Fuel Use Requirement
Whenever practical and economically feasible, all state agencies operating alternative fuel vehicles must use alternative fuels in those vehicles. Private businesses are encouraged to increase the use of alternative fuels in the state. (Reference Executive Order 2001-35)
