South Carolina

COLUMBIA - May 02 - Augusta Chronicle, The

Three proposals that would provide tax breaks for energy-efficient purchases were nearly defeated Thursday, but South Carolina's Senate leader saved them by agreeing to offer the incentives a year later.

Senate President Pro Tem Glenn McConnell's move came after colleagues raised concerns about whether the state can afford the tax breaks in a tight spending year.

"I just told them this state, in my opinion, is headed toward an energy shortage," said Mr. McConnell, R-Charleston. "This is one of the few things that we can do to help reduce that shortage."

Earlier Thursday, a Senate panel sidelined the proposals, which would have likely defeated them for the year.

"We're going to look at it again and try to work out something so we can try to get it out," said Sen. William O'Dell, R-Ware Shoals.

The incentives being considered include:

* A $750 rebate on the sale of manufactured homes that meet federal Energy Star standards

* A state tax credit equal to 20 percent of federal tax breaks for installing solar-electric, solar heating or hydrogen power systems

* A sales tax exemption for buying machinery and tools used to make electricity from solar, wind, tides, geothermal and biomass sources

* A two-time sales tax exemption during the months of October and April for people who by Energy Star-rated products for their homes, including dishwashers, air conditioners, fluorescent light bulbs and windows or doors

Ben Moore, the climate and energy project manager for the Coastal Conservation League, was delighted the bills were revived. South Carolina ranks near the bottom nationally in energy efficiency, and power bills could be lowered with the incentives, he said.

In the midst of an economic downturn, "this legislation puts more money in people's pockets. It is really a stimulus," he said.

Originally published by Associated Press.

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