Questions & Answers

What is the South Carolina Motor Fuel Income Tax Credit?

The South Carolina Motor Fuel Income Tax Credit is a refundable credit for full-year or part-year South Carolina residents who have at least one qualifying vehicle registered in South Carolina that uses gasoline, gasohol, diesel, or alternative fuel (e.g., compressed natural gas, liquefied petroleum gas, or liquefied natural gas) as fuel. All-electric vehicles do not qualify for this credit.

The amount of the credit is based on the smaller of the increase in South Carolina motor fuel user fee you paid during 2020 or the preventative maintenance costs incurred in South Carolina during 2020.

Each taxpayer can claim this credit for up to two vehicles registered in South Carolina. If you are married filing a joint return, each spouse may claim a credit for up to two qualifying vehicles registered in his or her name. They may not both claim a credit on the same vehicle. It is possible for a couple filing a joint return to claim credit for up to four vehicles.

If you have more qualifying vehicles for this credit than allowed, enter the information for each vehicle you own or lease, that is registered in South Carolina, and we will select which vehicles to include on your return to maximize your credit.

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