Recycling facility tax credit
South Carolina provides a Recycling Facility Tax Credit to encourage large-scale investment in facilities that manufacture products using postconsumer waste materials. The credit is designed to support substantial capital investment in recycling operations and promote the use of recycled content in products sold in the market.
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 Tax Credit equals 30% of the cost of qualifying recycling property placed into service each year.
Key program features include:
- No limit on the amount of tax that may be offset by the credit.
- No expiration period for unused credits.
- Unused credits may be carried forward indefinitely.
This structure allows qualifying facilities to apply the credit over time as needed.
Frequently asked questions
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