H 4203 General Bill, By Herbkersman, Brantley, Viers, Merrill, Crawford, 
Rutherford, Agnew, Bales, Bannister, Bowen, Clyburn, Duncan, Edge, Funderburk, 
Gullick, Hosey, Kelly, Knight, Moss, Mulvaney, Neilson, Owens, Shoopman, 
G.M. Smith, J.R. Smith, Taylor, Thompson and Young
 A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION
 12-6-3380 SO AS TO ALLOW A STATE INCOME TAX CREDIT TO A TAXPAYER FOR
 THIRTY-THREE PERCENT OF THE COST HE INCURS TO PURCHASE REUSABLE MATERIALS USED
 IN CONSTRUCTION OR LANDSCAPING PROJECTS, AND TO DEFINE QUALIFIED EXPENDITURES
 AND REUSABLE MATERIALS.

   05/31/07  House  Introduced and read first time HJ-15
   05/31/07  House  Referred to Committee on Ways and Means HJ-15

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3380 SO AS TO ALLOW A STATE INCOME TAX CREDIT TO A TAXPAYER FOR THIRTY-THREE PERCENT OF THE COST HE INCURS TO PURCHASE REUSABLE MATERIALS USED IN CONSTRUCTION OR LANDSCAPING PROJECTS, AND TO DEFINE QUALIFIED EXPENDITURES AND REUSABLE MATERIALS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-3380.    (A)    For taxable years beginning after 2007, a taxpayer is allowed a credit against the income tax imposed pursuant to Chapter 6, Title 12 for qualified expenditures.

(B)    For purposes of this section:

(1)    'Qualified expenditures' means expenses incurred by a taxpayer to purchase reusable materials for use in construction or landscaping projects.

(2)    'Reusable materials' means materials that previously have been in use, are recycled, or are salvaged, and are renewed for resale to consumers.

(C)    The credit is equal to thirty-three percent of the qualified expenditures made by a taxpayer. Unused credits may be carried forward for five years after the tax year in which qualified expenditures were made. The credit is nonrefundable.

(D)    Notwithstanding the amount of credits allowed by this section, these credits, when combined with any other state income tax credits allowed the taxpayer for a particular taxable year, cannot reduce the taxpayer's South Carolina income tax liability more than fifty percent.

(E)    All documentation provided by taxpayers and their agents to the Department of Revenue in connection with claiming the credits allowed by this section is considered a tax return and subject to the penalty provided in Section 12-54-40(f)."

SECTION    2.    This act takes effect upon approval by the Governor.