Hydrogen Laws and Incentives in South Carolina
The list below contains summaries of all South Carolina laws and incentives related to hydrogen.
State Incentives
Alternative Fuel Project Grants
The South Carolina Office of Regulatory Staff-Energy Office (Energy Office) offers grants of up to $25,000 for alternative fuel demonstration projects. Eligible applicants include state agencies, local governments, public colleges and universities, K-12 public schools, and non-profit organizations. For more information, including how to apply, see the Energy Office’s Mini-Grant Program website.
Alternative Fuel Vehicle (AFV) Revolving Loan Program for Private Entities
The South Carolina Business Development Corporation provides low interest loans for a variety of energy efficiency improvements, including AFV conversions and incremental costs, with qualified project payback periods. Eligible recipients include businesses and industries. Utilities, non-profit organizations, and government entities may be eligible under special conditions. The loan may cover up to 100% of the project costs, ranging from $50,000 to $1 million. Repayment terms vary. For more information, including application deadlines, see the Energy Efficiency Revolving Loan website.
(Reference South Carolina Code of Laws 48-52-650)
Alternative Fuel Vehicle (AFV) Revolving Loan Program for Public Entities
The South Carolina Energy Office (SCEO) provides low interest loans for a variety of energy efficiency improvements, including AFV conversions and the incremental costs of a new AFV, with qualified project payback periods. Loans may cover up to 100% of project costs, ranging from $25,000 to $500,000 per state fiscal year. Eligible recipients include state agencies, local governments, public colleges and universities, school districts, and private non-profit organizations. State agencies and public educational institutions may combine their loan with a ConserFund Plus grant, which may cover up to 30% of total project costs. For more information, see the ConserFund website.
(Reference South Carolina Code of Laws 48-52-650)
Battery Manufacturing Tax Incentive
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. Additional restrictions apply.
(Reference South Carolina Code of Laws 12-10-30, 12-10-80, 12-15-20, 12-15-30, 12-37-930)
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
Alternative Fuel Vehicle Fee
Owners of plug-in electric vehicles and fuel cell electric vehicles must pay a biennial fee of $120, in addition to standard registration fees. Hybrid electric vehicle owners must pay a biennial fee of $60.
(Reference South Carolina Code of Laws 56-3-645 and 12-28-110(39))
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 South Carolina 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 permit 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.
(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 life cycle costs are comparable to other available motor vehicles.
(Reference South Carolina Code of Laws 1-11-310)
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.