Search Federal and State Laws and Incentives

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 incremental costs, with qualified project payback periods. Eligible recipients include state agencies, local governments, public colleges and universities, school districts, and private non-profit organizations. Private non-profit organizations and local government entities may be eligible for loans of up to 100% of eligible project costs ranging from $25,000 to $500,000 per state fiscal year. For state agencies and public educational institutions, SCEO will provide 70% of each project's funding as a loan and entities may also be eligible for ConserFund Plus grant of up to 30% project cost. 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, and non-profit organizations. 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 and must be repaid after one and one half times the projected payback period of the loan. For more information, including application deadlines, see the Energy Efficiency Revolving Loan website. (Reference South Carolina Code of Laws 48-52-650)

Alternative Fueling Infrastructure Tax Credit

An income tax credit is available for 25% of the cost to purchase, construct, and install qualified alternative fueling infrastructure. Qualified infrastructure includes equipment used to distribute, dispense, or store alternative fuel. Eligible fuels include natural gas and propane. The entire credit must be taken in three equal annual installments beginning with the taxable year in which the facility is placed into service. Unused credits may be carried forward for up to ten succeeding taxable years. A taxpayer may transfer the tax credit to eligible agencies after notifying the South Carolina Department of Revenue. This tax credit expires January 1, 2026. (Reference South Carolina Code of Laws 12-28-110, 12-37-2820, and 12-6-3695)

Idle Reduction and Natural Gas Vehicle (NGV) Weight Exemptions

Any motor vehicle or combination of vehicles equipped with idle reduction technology is allowed to exceed the maximum gross vehicle and axle weight limits by up to 550 pounds to compensate for the added weight of the idle reduction technology. The vehicle operator must provide documentation that the vehicle is equipped with fully functional idle reduction technology.

A vehicle powered primarily by natural gas may exceed the state's gross, single axle, tandem axle, or bridge formula weight limits by an amount equal to the difference of the weight of the natural gas tank and fueling system and the weight of a comparable diesel tank and fueling system, up to 2,000 pounds. Upon request, the vehicle operator must provide documentation that verifies the weight of the natural gas fueling system.

(Reference South Carolina Code of Laws 56-5-4160(M) ) and 56-5-4160(L))

Alternative Fuel Project Grants

The South Carolina Office of Regulatory Staff-Energy Office (Energy Office) awards grants for alternative fuel demonstration projects. Projects may receive grants of up to $5,000. 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 Loans, Grants & Tax Incentives website.