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The maximum aggregate credit that may be claimed in a tax year for a single employee under this subsection and Section 12-6-3360 is five thousand five hundred dollars.

(B) In addition to the credits provided for in subsection (A) and Section 12-6-3360, a taxpayer who employs a person who received AFDC payments within this State for three months before becoming employed and employs that person to work full time in a least developed county, as defined in Section 12-6-3360, is allowed a credit in an amount equal to one hundred seventy-five dollars for each full month during the first thirty-six months of employment.

(C) The income tax credit provided by subsection (A) shall is not be allowed unless the taxpayer also makes available full individual or participating family health care coverage for the benefit of each qualified employee for which the credit is claimed earned.

(C) (D) The Department of Social Services and the South Carolina Employment Security Commission must make information available to employers interested in hiring AFDC recipients and must provide documentation to employers verifying a person's status as an AFDC recipient.

(D) This section applies to tax years beginning after 1994.

(E) No income tax credit provided for in subsection (A) may be taken under this section if the position filled by the former AFDC recipient was made available due to the termination or forced resignation of an employee for the purpose of obtaining the tax credit. Nothing in this section creates a private cause of action which does not otherwise exist at law.

(F) A credit claimed under this section but not used in a taxable year may be carried forward fifteen years from the taxable year in which the credit is earned."

B. This section is effective for taxable years beginning after 1995.

SECTION 15. Section 12-10-20 of the 1976 Code, as added by Act 25 of 1995, is amended by adding at the end:

"(4) The state's per capita income has not reached the United States average and certain rural, less developed counties have not experienced capital investment, per capita income, and job growth at a level equal to the state's average. The economic well-being of these areas will not be sustained without significant incentive to induce capital investment and job creation."

"(7) Reserved.`Services' means engagement primarily in an activity or activities listed under the Standard Industrial Classification (SIC) Code 80 according to the Federal Office of Management and Budget Standard Industrial Classification Manual 1987 edition."

SECTION 17. Section 12-10-40 of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:

"Section 12-10-40. Annually, by December thirty-first, using the most current data available, the State Budget and Control Board shall designate the enterprise zones within this State as provided in this section. Each enterprise zone must be located in this State and meet one of the following criteria:

(1) consist of a census tract in which either the median household income is eighty percent or less of the state average, or at least twenty percent of households are below the poverty level according to the most recent United States census;

(2) consist of a county classified as less developed pursuant to Section 12-7-1220;

(3) be located in a federal military base or installation which was closed, or designated to be closed, or in a federal facility in which the permanent employment was reduced by three thousand or more jobs after December 31, 1990;

(4) consist of a census tract with at least one hundred manufacturing jobs, at least fifty percent of which are textile and apparel jobs;

(5) consist of a census tract where a manufacturing facility has closed or experienced permanent layoffs and notified the Employment Security Commission under the federal Worker Adjustment and Retaining Notification (WARN) Act of 1988. The enterprise zone designation applies only for five years after the date of closure or layoff, and the number of jobs permanently lost must equal twenty-five percent or more of the total manufacturing workforce in the tract at the time the layoff occurred. The job loss shall have occurred no more than five years prior to the effective date of this chapter, except in any census tract where a catastrophic loss of one thousand or more jobs from a single employer has occurred since 1980 and fewer than half the job losses have been replaced. Any such tract will remain an enterprise zone until at least half the catastrophic job losses have been replaced. Where a municipality in which the catastrophic job loss occurred is split by census tracts, each tract containing any part of the municipality meets the catastrophic job loss criteria;

(8) consist of a research park established pursuant to Section 13-17-30 while the park is operated or controlled by the South Carolina Research Authority. The amount of benefits available to qualified businesses is determined by the county designation as defined in Section 12-6-3360(B), in which the business is located."

SECTION 18. Section 12-10-50 of the 1976 Code, as added by Act 25 of 1995, is amended to read:

"Section 12-10-50. To qualify for the benefits provided in this chapter, a business must be located within an enterprise zone this State and satisfy the following criteria:

(1) it must be primarily engaged in a business of the type identified in Section 12-7-1220, 12-6-3360 or in the alternative it must be primarily engaged in a business providing services as defined in Section 12-10-30;

(2) the business in the enterprise zone shall provide a benefits package to full-time employees which includes health care;

(3) the qualifying business shall enter into a revitalization agreement which is approved by the council, except that no revitalization agreement is required for a qualifying business with respect to Sections 12-10-70(2), 12-10-70(3), and Section 12-10-80(D); and

(4) the council shall determine that the available incentives are appropriate for the project, and the council shall certify to the department that the total benefits of the project exceed the costs to the public, and that the qualifying business otherwise fulfills the requirements of this chapter. No provision of this chapter must be construed to allow the council to negotiate a fee-in-lieu of property taxes agreement or approve job training or retraining."

SECTION 19. A. Subsections (A) through (D) of Section 12-10-80 of the 1976 Code, as amended by an act of 1996 bearing ratification number 234, are further amended to read:

"(A) Upon certification by the council to the department of the council's determination that a business is a qualifying business, a qualifying business may collect a job development fee by retaining an amount of employee withholding permitted by subsection (C) (B) or (D), or both, for the purposes permitted by subsection (B) (C) or (D), respectively. To qualify for a job development fee, a qualifying business

(B) A qualifying business may collect a job development fee under the revitalization agreement for a period not to exceed fifteen years. A qualifying business must create at least ten new, full-time jobs at the South Carolina facility described in the revitalization agreement. Capital expenditures from the escrow account must be expended at the above-described facility or for utility or transportation improvements that

(5) construction or improvements of any real property and fixtures constructed or improved primarily for the purpose of complying with local, state, or federal environmental laws or regulations.

(C) The total amount retained from employee withholding by the qualifying business may not exceed the sum of the following amounts:

(1) two percent of the gross wages of each new employee who earns six dollars or more an hour but less than eight dollars an hour;

(2) three percent of the gross wages of each new employee who earns eight dollars or more an hour but less than ten dollars an hour;

(3) four percent of the gross wages of each new employee who earns ten dollars or more an hour but less than fifteen dollars an hour; and

(4) five percent of the gross wages of each new employee who earns fifteen dollars or more an hour.

The hourly gross wage figures set forth in this section must be adjusted annually by an inflation factor determined by the State Budget and Control Board.

(B) The total amount retained from employee withholding by the qualifying business may not exceed the sum of the following amounts:

(1) two percent of the gross wages of each new employee who earns six dollars or more an hour but less than eight dollars an hour;

(2) three percent of the gross wages of each new employee who earns eight dollars or more an hour but less than ten dollars an hour;

(3) four percent of the gross wages of each new employee who earns ten dollars or more an hour but less than fifteen dollars an hour; and

The hourly gross wage figures set forth in this section must be adjusted annually by an inflation factor determined by the State Budget and Control Board. The amount which may be retained by a qualifying business is limited by subsection (C)(6) and the revitalization agreement. The council may approve a waiver of the limits under subsection (C)(6) for qualifying businesses making a significant capital investment as defined in Section 4-12-30(D)(4) or Section 4-29-67(D)(4).

(C) Capital expenditures from the escrow account must be expended at the above-described facility or for utility or transportation improvements that serve this facility. The qualifying business may expend funds from the escrow account if (a) the expenditures are incurred during the term of the revitalization agreement or within sixty days before the execution of a revitalization agreement, including a preliminary revitalization agreement, (b) the expenditures from the escrow account are authorized by the revitalization agreement, and (c) the expenditures are for any of the following purposes:

(1) training costs and facilities;

(2) acquiring and improving real estate whether constructed or acquired by purchase, or in cases approved by the council, acquired by lease or otherwise;

(3) improvements to both public and private utility systems including water, sewer, electricity, natural gas, and telecommunications;

(4) fixed transportation facilities including highway, rail, water, and air;

(5) construction or improvements of any real property and fixtures constructed or improved primarily for the purpose of complying with local, state, or federal environmental laws or regulations;

(6) the amount of job development fees a qualifying business may retain for its use for qualifying expenditures is limited according to the designation of the county as defined in Section 12-6-3360 as follows:

(a) one hundred percent of the maximum job development fees may be retained by businesses located in counties designated as `least developed';

(b) eighty-five percent of the maximum job development fees may be retained by businesses located in counties designated as `under developed';

(c) seventy percent of the maximum job development fees may be retained by businesses located in counties designated as `moderately developed'; or

The council shall certify to the department the maximum job development fee for each qualified business. After receiving certification the department shall remit withholding equal to the difference between the maximum job development fee and the job development fee actually retained to the State Rural Infrastructure Fund as defined in Section 12-10-85.

(D) Subject to the conditions in this section, any qualifying business in an enterprise zone this State may negotiate with the council to retain from employee withholding an amount equal to five hundred dollars a year for each production employee being retrained, where this retraining is necessary for the qualifying business to remain competitive or to introduce new technologies. This retraining must be approved by and performed by the technical college under the jurisdiction of the State Board for Technical and Comprehensive Education serving the designated enterprise zone. The technical college may provide the retraining program delivery directly or contract with other training entities to accomplish the required training outcomes. In addition to the yearly limits, the amount retained from employee withholding may not exceed two thousand dollars over five years for each production employee being retrained. Additionally, the qualifying business must match on a dollar-for-dollar basis the amount retained from employee withholding. The total amount retained from withholding and all of the qualifying business' matching funds must be paid to the technical college that provides the training to defray the cost of the training program. Any training cost in excess of the job development fees and matching funds is the responsibility of the qualifying business based on negotiations with the technical college."

B. Section 12-10-80 of the 1976 Code, as last amended by an act of 1996 bearing ratification number 234, is further amended by adding at the end:

"(H) Job development fees may not be retained by a governmental employer who employs persons at a closed or realigned military installation as defined in Section 12-10-85(E)."

SECTION 20. Section 12-10-90 of the 1976 Code, as added by Act 25 of 1995, is amended to read:

"Section 12-10-90. If a qualifying business fails to achieve the level of capital investment or employment set forth in the revitalization agreement, the department council may terminate the revitalization agreement and reduce or suspend all or any part of the incentives until the time the anticipated capital investment and employment levels are met. However,

SECTION 21. Section 12-14-30(3)(b) of the 1976 Code, as amended by an act of 1996 bearing ratification number 234, is further amended to read:

"(b) Reserved. a manufacturing facility that has closed or experienced permanent layoffs and notified the Employment Security Commission under the federal Worker Adjustment and Retraining Notification (WARN) Act of 1988. The number of jobs lost must equal twenty-five percent or more of the total workforce in the census tract in which the facility is located at the time the layoff occurred. The job loss must have occurred no more than five years before April 4, 1995, except in any census tract where a catastrophic loss of one thousand or more jobs from a single employer has occurred since 1980 and fewer than half the jobs have been replaced."

SECTION 22. Section 12-36-70(b) of the 1976 Code, as added by Act 612 of 1990, is amended to read:

"(b) furnishing accommodations to transients for a consideration, except an individual furnishing accommodations of less than six sleeping rooms within a single building, on the same site which is the individual's place of abode;"

SECTION 23. Section 12-36-120(4) of the 1976 Code, as last amended by Act 361 of 1992, is further amended to read:

"(4) materials, containers, cores, labels, sacks, or bags, or pallets used incident to the sale and delivery of tangible personal property, or used by manufacturers, processors, and compounders in shipping tangible personal property."

SECTION 24. Section 12-36-920(A) of the 1976 Code, as added by Act 612 of 1990, is amended to read:

"(A) A sales tax equal to seven percent is imposed on the gross proceeds derived from the rental or charges for any rooms, campground spaces, lodgings, or sleeping accommodations furnished to transients by any hotel, inn, tourist court, tourist camp, motel, campground, residence, or any place in which rooms, lodgings, or sleeping accommodations are furnished to transients for a consideration. This tax does not apply where the facilities consist of less than six sleeping rooms, contained in a single building on the same site, which is used as the individual's place of abode. The gross proceeds derived from the lease or rental of sleeping accommodations supplied to the same person for a period of ninety

SECTION 25. Section 12-36-2120(14) of the 1976 Code, as added by Act 612 of 1990, is amended to read:

"(14) wrapping paper, wrapping twine, paper bags, and containers, or pallets, used incident to the sale and delivery of tangible personal property."

SECTION 26. A. Section 12-36-2120 of the 1976 Code, as amended, is further amended by adding the following new items to be appropriately numbered to read:

"( ) Material handling systems and material handling equipment including, but not limited to, racks, whether or not the racks are used to support a facility structure or part thereof, used in the operation of a distribution facility or a manufacturing facility. In order to qualify for this exemption, the taxpayer shall notify the department before the first month it uses the exemption and shall invest at least forty million dollars in any real or personal property in this State over the five-year period beginning on the date provided by the taxpayer to the department in its notices.

( ) Parts and supplies used by persons engaged in the business of repairing or reconditioning aircraft owned by or leased to the federal government or commercial air carriers. This exemption does not extend to tools and other equipment not attached to or that do not become a part of the aircraft."

B. The provisions of subsection A. of this section take effect on the first day of the second month following approval by the Governor.

SECTION 27. Section 12-37-220(B)(33) of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"(33) All personal property including aircraft of an air carrier including aircraft used in operating which operates an air carrier hub terminal facility in this State for a period of ten consecutive years from the date of qualification, if its qualifications are maintained. An air carrier hub terminal facility is defined in Section 55-11-500."

SECTION 28. Notwithstanding any other provision of law, Section 12-10-80(A) of the 1976 Code job development fees may be retained for employees hired after December 31, 1995, if the qualified business qualifies under Section 4-12-30(D)(4) of the 1976 Code or Section 4-29-67(D)(4) of the 1976 Code and enters into a revitalization agreement applying to these employees before August 1, 1996.

SECTION 29. Section 12-10-70 of the 1976 Code is repealed.

Renumber sections to conform.

Amend totals and title to conform.

Rep. HARRELL explained the amendment.

The amendment was then adopted.

Further proceedings were interrupted by the House standing at ease until the Joint Assembly, the pending question being consideration of amendments.

The House stood at ease subject to the call of Chair.

At 11:59 A.M. the House resumed, the SPEAKER in the Chair.

At 12:00 Noon the Senate appeared in the Hall of the House.

The President of the Senate called the Joint Assembly to order and announced that it had convened under the terms of a Concurrent Resolution adopted by both Houses.

The Reading Clerk of the House read the following Concurrent Resolution:

H. 4484 -- Rep. Keegan: A CONCURRENT RESOLUTION TO INVITE THE WINNERS OF THE 1996 SOUTH CAROLINA FOLK HERITAGE AWARDS AND THE MEMBERS OF THE 1996 FOLK HERITAGE AWARDS ADVISORY COMMITTEE TO ATTEND A JOINT SESSION OF THE HOUSE OF REPRESENTATIVES AND THE SENATE IN THE HALL OF THE HOUSE ON WEDNESDAY, APRIL 24, 1996, AT 12:00 NOON, AND TO RECOGNIZE AND COMMEND THE 1996 SOUTH CAROLINA FOLK HERITAGE AWARD WINNERS

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