Biofuels Research and Development Tax Credit

Expired: 12/31/2011

For taxable years through 2011, an income tax credit is available for qualified research and development expenditures, which include developing feedstocks and production processes for cellulosic ethanol, and algae-derived and waste grease-derived biodiesel. Qualified expenditures involving cellulosic ethanol and algae-derived diesel are eligible for a 25% credit, and qualified expenditures involving waste grease-derived biodiesel are eligible for a 10% credit. Cellulosic ethanol is defined as fuel derived from ligno-cellulosic materials, including wood chips, corn stover, and switchgrass. (Reference South Carolina Code of Laws 12-6-3631)