South Carolina Administrative Court Law Issues Summary Judgment against Energy Company in Tax Credit Case

Thursday, October 29, 2020 - 9:15am

The South Carolina Administrative Law Court granted a motion by the state’s department of revenue for a summary judgment to deny a capital investment tax credit to an energy company. In Duke Energy Corp. vs. S.C. Department of Revenue, the taxpayer challenged the state’s ruling that the capital investment tax had a $5 million lifetime limit, claiming the limit was $5 million per year. The state argued that if the limitation was annual, the word “annual” would have been included in the legislation, while Duke Energy claimed that since the tax was imposed annually and the statute calculated all aspects of the tax credit annually, the limit was annual. The court ruling included a conclusion that the limitation in the tax code was ambiguous and therefore had to be resolved in favor of the state, since statutes authorizing deductions are resolved against the taxpayer.

Learn more about renewable energy tax credits at the Novogradac 2020 Financing Renewable Energy Tax Credits Fall Virtual Conference, Nov. 5-6.