1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 12 1976, BY ADDING SECTION 1263770 SO AS TO PROVIDE 13 FOR AN INCOME TAX CREDIT TO AN INDIVIDUAL OR 14 BUSINESS THAT CONSTRUCTS, PURCHASES, OR LEASES 15 RENEWABLE ENERGY PROPERTY AND PLACES IT IN 16 SERVICE IN THIS STATE, AND TO PROVIDE A 17 DEFINITION OF “RENEWABLE ENERGY PROPERTY”. 18 19 Be it enacted by the General Assembly of the State of South 20 Carolina: 21 22 SECTION 1. Article 25, Chapter 6, Title 12 of the 1976 Code is 23 amended by adding: 24 25 “Section 1263770. (A) A taxpayer that constructs, purchases, 26 or leases renewable energy property and places it in service in this 27 State during the taxable year is allowed an income tax credit equal 28 to thirtyfive percent of the cost, including the cost of installation, 29 of the property. A taxpayer who owns renewable energy property 30 that serves a nonbusiness purpose must take the credit in the 31 taxable year in which the property is placed in service. For all 32 other renewable energy property, the credit must be taken in five 33 equal installments beginning with the taxable year in which the 34 property is placed in service. A lessor shall give a taxpayer who 35 leases renewable energy property from him a statement that 36 describes the renewable energy property and states the cost of the 37 property upon request. No credit is allowed under this section to 38 the extent the cost of the renewable energy property is provided by 39 public funds. For purposes of this section, ‘public funds’ does not 40 include grants made under Section 1603 of the American Recovery 41 and Reinvestment Tax Act of 2009.

[3874] 1 1 (B) If the renewable energy property with respect to which the 2 credit was claimed is disposed of, taken out of service, or moved 3 out of the State in a year in which the installment of a credit 4 accrues, then the credit expires and the taxpayer may not take any 5 remaining installments of the credit. 6 (C) A credit for each installation of renewable energy property 7 placed in service for a business purpose may not exceed two 8 million five hundred thousand dollars. Renewable energy property 9 is placed in service for a business purpose if the useful energy 10 generated by the property is offered for sale or is used onsite for a 11 purpose other than providing energy to a residence. 12 (D) If the renewable energy property is placed into service for a 13 nonbusiness purpose, then the credit may not exceed: 14 (1) one thousand four hundred dollars for each dwelling unit 15 for solar energy equipment for domestic water heating, including 16 pool heating; 17 (2) three thousand five hundred dollars for each dwelling 18 unit for solar energy equipment for active space heating, combined 19 active space and domestic water systems, and passive space 20 heating; 21 (3) eight thousand four hundred dollars for each installation 22 of geothermal equipment; and 23 (4) ten thousand five hundred dollars for each installation of 24 any other renewable energy property. 25 (E) A taxpayer who claims any other credit allowed with 26 respect to renewable energy property may not take the credit 27 allowed in this section with respect to the same property. A 28 taxpayer may not take the credit allowed in this section for 29 renewable energy property the taxpayer leases from another unless 30 the taxpayer obtains the lessor’s written certification that the lessor 31 will not claim a credit under this section with respect to the 32 property. 33 (F) For purposes of this section, ‘renewable energy property’ 34 means any of the following machinery and equipment or real 35 property: 36 (1) biomass equipment that uses renewable biomass 37 resources for biofuel production of ethanol, methanol, and 38 biodiesel, anaerobic biogas production of methane utilizing 39 agricultural and animal waste or garbage, or commercial thermal 40 or electrical generation. The term also includes related devices for 41 converting, conditioning, and storing the liquid fuels, gas, and 42 electricity produced with biomass equipment;

[3874] 2 1 (2) combined heat and power system property as defined in 2 26 U.S.C. Section 48; 3 (3) geothermal equipment that either: 4 (a) is a heat pump that uses the ground or groundwater as 5 a thermal energy source to heat a structure or as a thermal energy 6 sink to cool a structure; or 7 (b) uses the internal heat of the earth as a substitute for 8 traditional energy for water heating or active space heating or 9 cooling; 10 (4) hydroelectric generators located at existing dams or in 11 freeflowing waterways and related devices for water supply and 12 control and converting, conditioning, and storing the electricity 13 generated; 14 (5) solar energy equipment that uses solar radiation as a 15 substitute for traditional energy for water heating, active space 16 heating and cooling, passive heating, daylighting, generating 17 electricity, distillation, desalination, detoxification, or the 18 production of industrial or commercial process heat. The term also 19 includes related devices necessary for collecting, storing, 20 exchanging, conditioning, or converting solar energy to other 21 useful forms of energy; 22 (6) wind equipment required to capture and convert wind 23 energy into electricity or mechanical power and related devices for 24 converting, conditioning, and storing the electricity produced or 25 relaying the electricity by cable from the turbine motor to the 26 power grid.” 27 28 SECTION 2. This act takes effect in income tax years beginning 29 after 2015. 30 31 XX 32

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