Environmental and pollution control equipment exemptions
South Carolina provides sales and use tax exemptions for certain equipment used to prevent or abate air, water or noise pollution associated with qualifying industrial operations. These exemptions can help reduce the cost of required environmental and pollution control equipment.
By reducing the cost of qualifying equipment, these exemptions support continued investment in South Carolina’s manufacturing and industrial operations.
Overview of the exemption
South Carolina’s machine exemption allows qualifying companies to purchase certain machinery, parts and attachments without paying sales and use tax. The exemption includes certain equipment necessary to prevent or abate air, water or noise pollution associated with qualifying industrial machinery.
Pollution control equipment may qualify when it is necessary to comply with an order of a U.S. or South Carolina agency and relates to machinery used in manufacturing, processing, agricultural packaging, recycling, compounding, mining or quarrying tangible personal property for sale.
Eligibility criteria
Qualifying equipment may include machines, parts and attachments necessary to prevent or abate air, water or noise pollution caused or threatened by machinery used in eligible industrial activities.
To qualify, the equipment must:
- Be used in connection with machinery used in manufacturing, processing, agricultural packaging, recycling, compounding, mining or quarrying tangible personal property for sale
- Be necessary to comply with an order from an agency of the United States or South Carolina for the prevention or abatement of air, water or noise pollution
Claiming the exemption
The South Carolina Department of Revenue (SCDOR) administers the sales and use tax exemption.
A company claiming the pollution control machine exemption must provide SCDOR with a certified statement from the ordering agency confirming that the equipment is necessary to prevent or abate pollution caused or threatened by qualifying machinery.
Companies should confirm eligibility and documentation requirements with SCDOR before purchasing equipment.
