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Energy:
Clean Energy Tax Incentives

Our Position: support, with concerns
Bill Number: H.3644, S.525
Sponsor: Rep. Loftis, Sen. Campbell
Legislative Session: 2014

This House bill would provide tax incentives for the manufacturing of products leading to the development of “clean” energy sources, including companies in the solar, wind, geothermal, hydrogen, energy storage, and energy efficiency industries that spend at least $50 million in the same tax year as is applicable to the tax incentive: a company that has created at least one full-time job for every one million dollars of capital investment qualifying for the credit that each pays at least one hundred twenty-five percent of this State's average annual median wage as defined by the Department of Commerce. The credit is allowable for up to 60 months, or 5 years. (Negative) The problem is, as originally written, this incentive applied to “small modular reactors”: nuclear energy. We originally got this stricken and the bill delayed in the House for the year (where it originated), but a pending amendment would re-insert that language. Furthermore, no aforementioned “clean” manufacturing industry in SC will spend $50 million in a particular tax year, so it’s our opinion that this is a cloaked nuclear bill to begin with. Still without that amendment, it was our position this year that we support it; we oppose it with the amendment. Fortunately, the House version removed the 'small modular reactors' amendment, but the Senate version now incorporates a tax credit for all "clean" energy providers, which includes nuclear.

Status

5/13/14: H.3644 made it out of the House and is before the Senate Finance Committe. S.525 made out of the Senate Finance Committee, after broadening the tax credit to "clean" energy, but it is contested on the Senate floor.

Action Needed

None.

More information

http://www.scstatehouse.gov/sess120_2013-2014/bills/3644.htm

http://www.scstatehouse.gov/sess120_2013-2014/bills/525.htm

Background

This House bill would provide tax incentives for the manufacturing of products leading to the development of “clean” energy sources, including companies in the solar, wind, geothermal, hydrogen, energy storage, and energy efficiency industries that spend at least $50 million in the same tax year as is applicable to the tax incentive: a company that has created at least one full-time job for every one million dollars of capital investment qualifying for the credit that each pays at least one hundred twenty-five percent of this State's average annual median wage as defined by the Department of Commerce. The credit is allowable for up to 60 months, or 5 years. (Negative) The problem is, as originally written, this incentive applied to “small modular reactors”: nuclear energy. We got this stricken. Furthermore, no aforementioned “clean” manufacturing industry in SC will spend $50 million in a particular tax year, so it’s our opinion that this is a cloaked nuclear bill to begin with. Still without that amendment, it was our position this year that we support it; we oppose it with the amendment. S.525 seeks to re-opn the credit to all "clean" energy, which includes nuclear energy. The House bill is awaiting Senate subcommittee assignment; the Senate bill is stalled on the floor.
     
     

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