Green Initiative Credits

Green Initiative Credits Recycling Facility Tax Credit In order to reward qualified recycling facilities, South Carolina offers a credit equal to 30% of the cost of recycling property placed into service each year. A qualified recycling facility is one that has a $150 million dollar investment within five years and that manufactures products for sale composed of 50% or more postconsumer waste material by weight or volume. There is no limit to the amount of tax that can be offset with the credit, and the credit can be carried forward indefinitely. Solar Energy Tax Credit South Carolina allows a company a credit against income taxes equal to 25% of the costs incurred by the company in the purchase and installation of a solar energy system, including a small hydropower system, for heating water, space heating, air cooling, energy efficient daylighting, heat reclamation, energy-efficient demand response or the generation of electricity in or on a facility in South Carolina owned by the company. The credit cannot be claimed before installation of the system is completed. The amount of the credit may not exceed $3,500 for each facility or 50% of the income tax liability for the taxable year, whichever is less. Unused credit can be carried forward for 10 years. A “system” includes all exchangers, and other equipment used directly and exclusively for the solar energy system. It does not include any land or structural elements of the building such as walls, roofs or other equipment ordinarily contained in the structure. To qualify for the credit, the system must be certified for performance by the nonprofit Solar Rating & Certification Corporation or a comparable entity endorsed by the State Energy Office. Energy Conservation and Renewable Energy Tax Credit South Carolina allows a taxpayer a credit equal to 25% of all expenditures incurred during the taxable year for the purchase and installation of the following energy conservation and renewable energy production measures: Conservation tillage equipment Drip/trickle irrigation systems including all necessary measures and equipment Dual purpose combination truck and crane equipment A company may claim the credit only one time for each of the three measures in a lifetime. The maximum credit that may be claimed for each measure is $2,500. In the case of pass through entities, the credit is determined at the entity level and is limited to $2,500. Any unused credit can be carried forward for 5 years. Textile Revitalization Credit There are credits for rehabilitating abandoned textile mill sites that encourage businesses to redevelop abandoned textile mill sites. Sites that are eligible are abandoned sites directly used for textile manufacturing operations or ancillary uses for, or designed for use by, textile manufacturing. “Abandoned” means that at least 80% of the site has been closed for a period of at least one year. A company that improves, renovates or redevelops an eligible site may be eligible for  one of two tax credits: A credit against income taxes or license taxes  equal to 25% of the rehabilitation expenses. This credit is to be taken in equal installments over five years beginning with the tax year in which the site is placed in service. The credit may offset up to 100% of income or license tax liability. Unused credits can be carried forward up to five years. In this case, the taxpayer must file a Notice of Intent to Rehabilitate with the Department of Revenue before receiving building permits.

Sites that are eligible are abandoned sites directly used for textile manufacturing operations or ancillary uses for, or designed for use by, textile manufacturing. “Abandoned” means that at least 80% of the site has been closed for a period of at least one year. A company that improves, renovates or redevelops an eligible site may be eligible for  one of two tax credits: