The South Carolina government charges a fee for each gallon of fuel purchased in South Carolina. Effective July 1, 2017, the South Carolina motor fuel user fee increases by $0.02 per gallon every fiscal year until 2022. As of July 1, 2020 the motor fuel user fee is $0.24 per gallon of fuel (gasoline, gasohol, blended fuels containing gasoline, diesel fuel, substitute fuels, alternative fuels, or blended fuels containing diesel fuel).
The Motor Fuel Income Tax Credit allows taxpayers who own a qualifying vehicle registered in South Carolina to get a refundable credit of a portion of this fee. This credit is equal to the smaller of the increase in South Carolina motor fuel user fee or your preventative maintenance costs you paid for your qualifying vehicles during 2020.
The average motor fuel user fee increase for 2020 was $0.07 per gallon. You will only need to tell us how many gallons of fuel you purchased for your vehicle(s) during the year, and we will calculate the total amount of the motor fuel user fee increase that you paid.