Search Federal and State Laws and Incentives

State Agency Preference for Alternative Fuel and Advanced Vehicles

State agencies purchasing motor vehicles must give preference to hybrid, plug-in hybrid electric, all-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)

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)

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 . For more information, see the ConserFund website.

(Reference South Carolina Code of Laws 48-52-650)

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 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)))

Electric Transportation Impact Studies

The Joint Committee on the Electrification of Transportation (Committee) must study the challenges and opportunities associated with transportation electrification and make recommendations to the General Assembly. The Committee must investigate the following areas:

• The environmental, economic, and customer challenges associated with electric vehicles (EVs);
• The potential value of advancing the development and deployment of EVs and associated infrastructure; and,
• The impacts of EVs on current infrastructure, customers, utilities, and electricity grid.

The South Carolina Department of Revenue must provide an annual report to the Committee on the prior fiscal year’s revenue collection for the repair, maintenance, or improvements to the South Carolina transportation system.

(Reference South Carolina Code of Laws 58-27-260)

Transportation Electrification Utility Impact Study

No earlier than April 1, 2023, the Public Service Commission (PSC) must open a docket for the purpose of identifying the regulatory challenges and opportunities associated with transportation electrification, including:

• Grid integration and modernization efforts;
• Regulatory policies to support efficient and cost-effective transportation electrification;
• Data management and coordination;
• Grid investments to support electric vehicle (EV) deployment;
• Increased EV adoption and the development of their charging infrastructure; and,
• Rate design and load management strategies.

The PSC must also submit reports on a triennial basis to the Joint Committee on the Electrification of Transportation on regulatory issues related to transportation electrification.

(Reference South Carolina Code of Laws 58-27-265)

Electric Transportation Stakeholder Group

The South Carolina Office of Regulatory Staff (ORS) must engage stakeholders to explore opportunities to advance transportation electrification and identify potential challenges. Regulatory staff must work with private and public sector stakeholders to examine the legislative and regulatory environmental, economic, and customer challenges and opportunities. ORS must submit a report on opportunities to advance transportation electrification to the Joint Committee on the Electrification of Transportation on a bi-annual basis.

(Reference South Carolina Code of Laws 58-27-270)