For the sixth consecutive year, South Carolina’s Motor Fuel User Fee—which helps support road, bridge, and infrastructure construction—increases at the pump starting July 1. Users will pay $0.02 more per gallon, as the fee goes from $0.26 to $0.28 per gallon.
This is the final increase approved by lawmakers as 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 ending this year. The fee of $0.28 per gallon which begins in July is permanent.
From July 1, 2017, when the Motor Fuel User Fee first increased, through March 2022, approximately $898.4 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 $2 billion in road and bridge work, according to figures from the South Carolina Department of Transportation.
Motor Fuel Income
South Carolina taxpayers can claim a credit to help offset the increase 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 68,052 South Carolina returns, totaling $5,592,065 in credits issued so far this year. Those interested in claiming this credit next year should save receipts from gas purchases and vehicle maintenance work. For more information about the Motor Fuel Income Tax Credit Review, visit dor.sc.gov/taxcredits or review Revenue Ruling 17-6.