SC SCH TC 59: Alternative Fuel Property Credit (Revision 2020-06)
South Carolina · South Carolina DOR · Used for tax years 2024, 2025, 2026
South Carolina Schedule TC-59 calculates the Alternative Fuel Property Credit for eligible property used to distribute, dispense, or store alternative fuel at South Carolina facilities. It reports qualifying costs, the annual credit installment, the credit taken for the current y
Who files this form
Use SC SCH.TC-59 to claim the Alternative Fuel Property Credit for eligible property purchased or constructed, installed, and placed in service in South Carolina. The property must be used to distribute, dispense, or store alternative fuel at a new or existing fuel distribution or dispensing facility. Line 1 covers costs at facilities owned by the taxpayer.
Eligible taxpayers include sole proprietors, partnerships, corporations, limited liability companies, and associations taxable as business entities. The definition also includes the State and its agencies, instrumentalities, authorities, and political subdivisions, including municipalities.
When it's due
For tax years beginning after 2015, eligible property must be placed in service by January 1, 2026 to qualify for the credit.
The form does not state a filing deadline.
What you'll need
Have the following information available to complete the schedule:
- Your name and SSN or FEIN. Individual taxpayers must provide their SSN.
- The cost of purchasing, constructing, and installing eligible property.
- Whether the property was placed in service during the current tax year or an earlier year.
- A previous year's TC59 if you need to carry over an annual installment amount.
- Any unused credits carried forward from previous tax years.
- Your current-year tax liability.
Individuals enter the credit on SC1040TC. Corporations enter it on SC1120TC.
How to file
- Enter eligible property costs on line 1 and multiply by 25% for line 2.
- If the property was placed in service this tax year, divide line 2 by three to find the annual installment on line 3. Otherwise, enter the installment amount from a previous year's TC59.
- Add any prior-year carryforward to the annual installment to find the total available credit.
- Enter your current-year tax liability. The credit taken is the smaller of the available credit or that liability.
- Subtract the credit taken from the available credit to calculate the carryforward.
Individuals: Enter the credit on SC1040TC. Corporations: Enter it on SC1120TC.
Paper filing: Attach this schedule to your Income Tax return.
Electronic filing: Keep a copy with your tax records.
The form does not provide a mailing address.
Common mistakes
- Taking the entire credit in the first year. The credit must be taken in three equal annual installments, starting with the tax year the property is placed in service.
- Reusing costs claimed for another credit. Construction and installation costs used to claim another credit cannot be used for this credit.
- Continuing installments after removing property from service. If the property is disposed of or taken out of service and not replaced, remaining installments are unavailable.
- Overlooking equipment labeling. Equipment must be labeled for its alternative-fuel purpose and clearly identified as associated with alternative fuel.
- Transferring the credit without notifying SCDOR. SCDOR must be notified of any intent to transfer the credit.
Questions people ask
How much is the credit?
The credit equals 25% of eligible purchasing, construction, and installation expenses. It must be taken in three equal annual installments beginning with the tax year the property is placed in service.
What property is eligible?
Eligible property includes pumps, compressors, storage tanks, and related equipment directly and exclusively used to distribute, dispense, or store alternative fuel. The equipment must be labeled for that purpose and clearly identified as associated with alternative fuel.
What counts as alternative fuel?
The form lists compressed natural gas, liquefied natural gas, and liquefied petroleum gas dispensed for use in motor vehicles, as well as those fuels dispensed by a distributor or facility.
Can I carry forward unused credit?
Yes. Unused credit may be carried forward for up to 10 tax years. The current-year credit is limited to your current-year tax liability.
Can I transfer the credit?
Yes. You must notify SCDOR of any intent to transfer the credit.