(A) For taxable years beginning after 2007, and before 2012, a taxpayer is allowed a credit against the income tax imposed pursuant to this chapter for qualified expenditures for research and development.
(B) For purposes of this section:
(1) "Qualified expenditures for research and development" include expenditures to develop feedstocks and processes for cellulosic ethanol and for algae-derived biodiesel.
(2) "Cellulosic ethanol" means fuel from ligno-cellulosic materials, including wood chips, corn stover, and switchgrass.
(C) The credit is equal to twenty-five percent of qualified expenditures for research and development. A taxpayer's total credit in all years, for all expenditures allowed pursuant to this section, must not exceed one hundred thousand dollars. Unused credits may be carried forward for five years after the tax year in which a qualified expenditure was made. The credit is nonrefundable.
(D) The amount of the credit provided by this section to a taxpayer must be invested by the taxpayer in demonstration projects on or research and development of:
(1) enzymes and catalysts;
(2) best and most cost efficient feedstocks for South Carolina; and
(3) product development.
(E) Expenditures qualifying for a tax credit allowed by this section and investments made by a taxpayer pursuant to subsection (D) must be certified by the State Energy Office, in consultation with the Department of Agriculture and the South Carolina Institute for Energy Studies.
(F) Notwithstanding the credit amount allowed pursuant to this section, for a fiscal year all claims made pursuant to this section must not exceed one hundred thousand dollars and must apply proportionately to all eligible claimants.