Recycling facility credit
South Carolina provides a Recycling Facility Credit to encourage large-scale investment in facilities that manufacture products using postconsumer waste materials. Eligible facilities may receive a tax credit equal to 30% of the cost of qualifying recycling property placed into service each year.
Qualified recycling facility requirements
To be considered a qualified recycling facility under this program, the operation must meet both investment and production standards.
Investment threshold
The facility must make a minimum capital investment of $150 million within five years.
Product composition requirement
The facility must manufacture products composed of at least 50% postconsumer waste material by weight or volume.
Both criteria must be satisfied to qualify for the credit.
Credit amount and limitations
The Recycling Facility Credit equals 30% of the cost of qualifying recycling property placed into service each year.
Key features include:
- No limit on the amount of tax that may be offset by the credit
- Unused credits may be carried forward indefinitely
Claiming the credit
To qualify, a company must receive certification from South Carolina Department of Commerce that the facility meets the requirements of a qualified recycling facility. Once certified, companies claim the credit through the South Carolina Department of Revenue (SCDOR) using Form TC-17.
