Tax Deductions

South Carolina Gasoline Tax Credit

As of January 1, 2018, South Carolina has added a new Refundable Motor Fuel Income Tax Credit to offset the state gas tax increases from July 2017 to 2022.  To claim the credit, you will need to save all gasoline receipts for gas purchased in SC and all maintenance receipts for the vehicle (only eligible if performed in South Carolina).  The amount of the credit is the lesser of the increased gas tax paid or the actual maintenance expenses performed on the vehicle.  Here are the full details per the SC Department of Revenue:

This credit is so insignificant that it may not be worth the effort to track the expenses.  Let’s take a look at an example for an average driver.

  • Drive 12,000 miles per year
  • Vehicle gets 20 miles per gallon
  • Vehicle needs 600 gallons of gas
  • Increased gas tax is 600 gallon @ average .03 per gallon (.02 for January through June and .04 for July through December)
  • Eligible for credit of $18

How much are you willing to work for the $18?  Think about the total expense it will cost the Department of Revenue to establish the form and set up all of their systems to track this minuscule credit.  This is a terrible waste of taxpayer funds and a bureaucratic embarrassment.