Manufacturers and industrial processors with facilities located in South Carolina, may be eligible for a utility tax exemption. South Carolina offers an exemption from state and local sales tax on the purchase of electricity, natural gas, and water used in qualifying production activities. This tax exemption is authorized by South Carolina Code § 12-36-2120(19).

Exemption Language of South Carolina Code § 12-36-2120(19)

"Electricity used by cotton gins, manufacturers, miners, or quarriers to manufacture, mine, or quarry tangible personal property for sale" is exempt from sales tax."

Utility Study Requirement for Exemption Qualification

A South Carolina utility tax study must list every piece of equipment and appliance (production and non-production) that uses the utility and the annual consumption of each. Failure to properly calculate or classify utility usage is cause for denial of the exemption.

South Carolina Statute of Limitations on Tax Refund

3 years

State Sales Tax Rate: 6%

Average Local Sales Tax Rate: 1.46%

Helpful Resources

South Carolina Utility Exemption Certificate: Exemption Certificate ST-10

South Carolina Utility Exemption Statute/Rule: South Carolina Code § 12-36-2120(19)

South Carolina Claim Form for Tax Refund: Claim for Refund ST-14