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Biomass Energy Production Incentive

Savings Category 
Combined Heat & Power
Landfill Gas
Anaerobic Digestion
Maximum Rebate 

$100,000 per fiscal year per taxpayer; $2.1 million per fiscal year for all taxpayers

Program Info
Sector Name 
South Carolina Energy Office
Expiration Date 


South Carolina
Program Type 
Performance-Based Incentive
Rebate Amount 

$0.01 per kWh / $0.30 per therm

Note: New claimaints are only eligible to receive this credit through June 30th, 2018 and will not be eligible to receive the credit for a full five year term.

In 2007 South Carolina enacted the Energy Freedom and Rural Development Act, which provides production incentives for certain biomass-energy facilities. Eligible systems earn $0.01 per kilowatt-hour (kWh) for electricity generated or $0.30 per therm (100,000 Btu) for energy produced from biomass resources. These incentives are available to systems that did not produce energy from biomass resources before June 30, 2008, or systems that increase production by at 25% over their greatest three-year average before June 30, 2008. The incentive payment is also applicable to energy from a qualifying facility placed in service and first producing energy on or after July 1, 2008. The maximum incentive is $100,000 per taxpayer per year. Incentives will be paid beginning on the date the system was placed in service. No incentives will be awarded after June 30, 2018. All claims will be paid from the state's general fund, and total claims may not exceed $2.1 million per fiscal year. As of August 2009, the South Carolina Department of Revenue had distributed $300,000 in payments. The incentive payment for the production of electricity or thermal energy may not be claimed for both electricity and energy produced from the same biomass resource.

For the purposes of this incentive, a biomass resource is defined as "wood, wood waste, agricultural waste, animal waste, sewage, landfill gas, and other organic materials, not including fossil fuels."

For more information about how to apply for the incentive, review the program application.