For the fifth consecutive year, South Carolina's Motor Fuel User Fee, which helps support road, bridge, and infrastructure construction in South Carolina, will increase from $0.24 to $0.26 per gallon beginning July 1.
The increase is part of the South Carolina Infrastructure and Economic Development Reform Act passed by the General Assembly in 2017, which raises the fee by $0.02 each July until 2022.
|Motor Fuel User Fee Rate Changes|
Fee Per Gallon*|
|July 1, 2017 – June 30, 2018||$0.18|
|July 1, 2018 – June 30, 2019||$0.20|
|July 1, 2019 – June 30, 2020||$0.22|
|July 1, 2020 – June 30, 2021||$0.24|
|July 1, 2021 – June 30, 2022||$0.26|
|July 1, 2022 and after||$0.28|
*This number does not include the inspection fee ($0.0025) and the environmental impact fee ($0.005) which have not changed and are still applied to motor fuel.
From July 1, 2017, when the Motor Fuel User Fee first increased, through April 2021, approximately $608.5 million in increased Motor Fuel User Fee revenues have been deposited into the state Infrastructure Maintenance Trust Fund in order to help support more than $1 billion in road and bridge work, according to figures from the South Carolina Department of Transportation.
Motor Fuel Income Tax Credit
South Carolina taxpayers can claim a credit to help offset increases in the Motor Fuel User Fee. The credit equals the lesser of the vehicle maintenance fees paid during the year or what was paid in the increased Motor Fuel User Fees.
Preliminary SCDOR data shows this credit has been claimed on 63,517 South Carolina returns, totaling $3,896,450 in credits issued, so far this year. The available credit cap increased from $65 million last year to $85 million this year.
Review Revenue Ruling 17-6 for more information about the Motor Fuel Income Tax Credit. For more details on the Motor Fuel User Fee and Income Tax Credit, visit dor.sc.gov.
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