South Carolina Natural Gas Laws and Incentives

State Incentives

Alternative Fuel and Advanced Vehicle Tax Credit

A state income tax credit equal to 20% of the federal fuel cell, advanced lean burn, hybrid electric vehicle, and alternative fuel vehicle credits is available to South Carolina resident taxpayers who are eligible for, and claim, the federal credits. If the amount of the 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 years. The state tax credit is calculated without regard to the phase out period limits of Internal Revenue Code Section 30(B)(f). (Reference South Carolina Code of Laws 12-6-3377)

State Laws and Regulations

State Agency Alternative Fuel Use Requirement

Whenever practical and economically feasible, all state agencies operating alternative fuel vehicles are required to 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)

Alternative Fuel Tax

All fuels, including alternative fuels and alternative fuel blends, are exempt from the state sales and use tax. However, all fuels are subject to a state fuels user fee of $0.16 per gallon. Alternative fuels include butane, liquefied petroleum gas, and compressed natural gas. Blended fuels are defined as mixtures composed of gasoline or diesel fuel and another liquid, other than products such as carburetor detergent or oxidation inhibitor, which can be used as a fuel to operate a highway vehicle. (Reference South Carolina Code of Laws 12-28-110, 12-28-310, and 12-36-2120)