Renewable Natural Gas

2025-2026 Bill 556: Renewable Natural Gas

South Carolina General Assembly

126th Session, 2025-2026

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This Bill
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A225, R229, S556

STATUS INFORMATION

General Bill

Sponsors: Senator Verdin

Document Path: SR-0317KM25.docx

Introduced in the Senate on April 15, 2025

Introduced in the House on April 30, 2026

Last Amended on May 13, 2026

Governor's Action: May 19, 2026, Signed

Summary: Renewable Natural Gas

HISTORY OF LEGISLATIVE ACTIONS

Date

Body

Action Description with journal page number

4/15/2025

Senate

Introduced and read first time (
Senate Journal-page 10
)

4/15/2025

Senate

Referred to Committee on
Finance
(
Senate Journal-page 10
)

4/15/2026

Senate

Committee report: Favorable with amendment
Finance
(
Senate Journal-page 43
)

4/28/2026

Senate

Committee Amendment Adopted (
Senate Journal-page 45
)

4/28/2026

Senate

Read second time (
Senate Journal-page 45
)

4/29/2026

Senate

Committee Amendment Adopted (
Senate Journal-page 31
)

4/29/2026

Senate

Amended (
Senate Journal-page 31
)

4/29/2026

Senate

Read third time and sent to House (
Senate Journal-page 31
)

4/29/2026

Senate

Roll call Ayes-41 Nays-1 (
Senate Journal-page 31
)

4/30/2026

House

Introduced and read first time (
House Journal-page 154
)

4/30/2026

House

Referred to Committee on
Ways and Means
(
House Journal-page 154
)

5/6/2026

House

Committee report: Favorable
Ways and Means
(
House Journal-page 11
)

5/12/2026

House

Debate adjourned (
House Journal-page 80
)

5/13/2026

House

Amended (
House Journal-page 108
)

5/13/2026

House

Read second time (
House Journal-page 108
)

5/13/2026

House

Roll call Yeas-95 Nays-16 (
House Journal-page 109
)

5/14/2026

House

Read third time and returned to Senate with amendments (
House Journal-page 7
)

5/14/2026

Senate

Concurred in House amendment and enrolled (
Senate Journal-page 16
)

5/15/2026

Ratified R 229

5/19/2026

Signed By Governor

6/5/2026

Effective date 05/19/26

6/3/2026

Act No. 225

View the latest
legislative information
at the website

VERSIONS OF THIS BILL

04/15/2025
04/15/2026
04/28/2026
04/29/2026
05/06/2026
05/13/2026

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

NOTE: THIS IS A TEMPORARY VERSION. THIS DOCUMENT WILL REMAIN IN THIS VERSION UNTIL FINAL APPROVAL BY THE LEGISLATIVE COUNCIL.

(A225, R229, S556)

AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 12-6-3830 SO AS TO PROVIDE FOR A TAX CREDIT FOR RENEWABLE NATURAL GAS.

Be it enacted by the General Assembly of the State of South Carolina:

Renewable natural gas tax credit

SECTION 1. Article 25, Chapter 6, Title 12 of the S.C. Code is amended by adding:

Section 12-6-3830. (A) For the purposes of this section:

(1) "Commercial use" means a use intended for the purpose of generating a profit.

(2) "Equipment" means equipment and facilities used solely to collect, process, and transport landfill gas, on the property of the facility, into renewable natural gas. Equipment does not include offsite utility infrastructure, land acquisition costs, legal expenses, administrative costs, or unrelated pipeline expansion.

(3) "Renewable natural gas" means natural gas derived from landfill gas, also known as biomethane, which has been upgraded to a quality similar to fossil natural gas and has a methane concentration of ninety percent or greater.

(B) For taxable years beginning after 2025 and ending before Taxable Year 2030, there is allowed a credit against the income tax imposed pursuant to Section 12-6-530 or license fees imposed pursuant to Section 12-20-50, or both, for twenty-five percent of the costs incurred by a taxpayer for the purchase and installation of equipment used to produce renewable natural gas for commercial purposes. Costs incurred by a taxpayer and qualifying for the credit allowed by this section must be certified as having been incurred by the State Energy Office. The credit may be claimed in the year in which the equipment is placed in service and may be claimed for all expenditures incurred for the purchase and installation of the equipment, including related engineering, permitting, and other necessary services.

(C) A taxpayer may use up to twenty-five percent, or five million dollars, whichever is less, of credit for a single taxable year. The tax credit is nonrefundable, but unused credits earned prior to the end of 2030 may be carried forward for fifteen years from the year in which they were earned. The credit under this section may be transferred by the taxpayer to another person who is eligible to utilize the tax credit and who will then be subject to the same requirements within this section. Regardless of whether the credit is transferred, if a regulated utility receives this credit, the regulated utility must pass on the credit to the benefit of ratepayers through the utility's next rate proceeding, or as otherwise directed by the Public Service Commission.

(D) A taxpayer must submit a request for the credit to the State Energy Office no later than January thirty-first for all qualifying equipment placed in service in the previous calendar year. Within thirty days of receiving a request for the credit, the State Energy Office must notify the taxpayer whether the taxpayer qualifies for the credit and, if so, the amount of credit allocated to the taxpayer. A taxpayer may claim the maximum amount of the credit for its taxable year that contains the December thirty-first of the previous calendar year. The Department of Revenue may require any documentation that it deems necessary to administer the credit.

(E) If a facility receiving credits pursuant to this section ceases operation, fails to maintain commercial production, or removes qualifying equipment from service within five years of the date the equipment is placed in service, the taxpayer shall repay a prorated portion of the credits previously claimed, as determined by the department.

Time effective

SECTION 2. This act takes effect upon approval by the Governor.

Ratified the 15th day of May, 2026.

Approved the 19th day of May, 2026.

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This web page was last updated on
June 3, 2026 at 12:04 PM