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A71, R88, S814
STATUS INFORMATION
General Bill
Sponsors: Senators Land and Hutto
Document Path: l:\council\bills\ggs\22138htc05.doc
Introduced in the Senate on May 3, 2005
Introduced in the House on May 5, 2005
Last Amended on May 11, 2005
Passed by the General Assembly on May 17, 2005
Governor's Action: May 23, 2005, Signed
Summary: Corporate income tax moratorium
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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5/3/2005 Senate Introduced, read first time, placed on calendar without
reference SJ-14
5/3/2005 Senate Unanimous consent for second and third readings on next
two consecutive legislative days SJ-14
5/4/2005 Scrivener's error corrected
5/4/2005 Senate Read second time SJ-18
5/5/2005 Senate Read third time and sent to House SJ-3
5/5/2005 House Introduced and read first time HJ-5
5/5/2005 House Referred to Committee on Ways and Means HJ-6
5/10/2005 House Recalled from Committee on Ways and Means HJ-17
5/11/2005 House Debate adjourned HJ-27
5/11/2005 House Debate adjourned HJ-31
5/11/2005 House Amended HJ-84
5/11/2005 House Read second time HJ-86
5/11/2005 Scrivener's error corrected
5/12/2005 House Read third time and returned to Senate with amendments
HJ-10
5/12/2005 Scrivener's error corrected
5/17/2005 Senate Concurred in House amendment and enrolled SJ-27
5/18/2005 Ratified R 88
5/23/2005 Signed By Governor
5/25/2005 Copies available
5/25/2005 Effective date 05/23/05
5/27/2005 Act No. 71
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
5/3/2005
5/3/2005-A
5/4/2005
5/10/2005
5/11/2005
5/11/2005-A
5/12/2005
(A71, R88, S814)
AN ACT TO AMEND SECTION 12-6-3365, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TEN-YEAR CORPORATE INCOME TAX MORATORIUM ALLOWED FOR CREATING AND MAINTAINING AT LEAST ONE HUNDRED FULL-TIME NEW JOBS IN COUNTIES THAT MEET CERTAIN UNEMPLOYMENT OR PER CAPITA INCOME REQUIREMENTS, SO AS TO EXTEND THE MORATORIUM TO A TAXPAYER OTHERWISE ELIGIBLE FOR THE MORATORIUM BUT FOR THE REQUIREMENT THAT AT LEAST NINETY PERCENT OF THE TAXPAYER'S TOTAL INVESTMENT IN THIS STATE MUST BE IN THE MORATORIUM COUNTY AND ALLOW THE MORATORIUM WHEN THAT TAXPAYER CREATES AT LEAST ONE HUNDRED NEW JOBS AND INVESTS AT LEAST ONE HUNDRED FIFTY MILLION DOLLARS IN A MANUFACTURING FACILITY IN A SECOND COUNTY DESIGNATED AS DISTRESSED, LEAST DEVELOPED, OR UNDERDEVELOPED WITH THE NINETY PERCENT OVERALL LIMITATION APPLYING TO INVESTMENT IN ONE OR BOTH OF THESE COUNTIES, TO EXTEND THE MORATORIUM SIMILARLY WHEN THE NUMBER OF JOBS CREATED WOULD ALLOW THE TAXPAYER A FIFTEEN-YEAR MORATORIUM, TO PROVIDE THAT A CHANGE IN BUSINESS FORM DURING THE MORATORIUM PERIOD DOES NOT AFFECT THE MORATORIUM, TO DEFINE "TAXPAYER" TO INCLUDE A GROUP OF AFFILIATED TAXPAYERS, AND TO MAKE CONFORMING AMENDMENTS; AND TO AMEND SECTIONS 12-44-30, 4-12-30, AND 4-29-67, ALL AS AMENDED, RELATING TO DEFINITIONS FOR PURPOSES OF THE FEE-IN-LIEU OF TAX SIMPLICATION ACT OF 1997 AND THE PROJECTS ELIGIBLE FOR AND CALCULATION OF FEES-IN-LIEU OF TAXES UNDER THE FEE-IN-LIEU OF TAX STATUTES, SO AS TO PROVIDE THAT AN "ENHANCED INVESTMENT" FOR PURPOSES OF THE FEE-IN-LIEU OF TAX SIMPLICATION ACT OF 1997 INCLUDES AN ECONOMIC DEVELOPMENT PROJECT AS SUCH A PROJECT IS DEFINED IN THE STATE GENERAL OBLIGATION ECONOMIC DEVELOPMENT BOND ACT AND FOR WHICH THE SECRETARY OF COMMERCE HAS ISSUED THE CERTIFICATION THAT THE PROJECTS MEET THE REQUIREMENTS OF THE DEFINITION AND SIMILAR PROJECTS WITH THE SAME CERTIFICATION FROM THE SECRETARY OF COMMERCE QUALIFY THE PROJECT FOR AN ASSESSMENT RATIO NOT LOWER THAN FOUR PERCENT IN THE CALCULATION OF A FEE-IN-LIEU OF TAX UNDER THE OTHER FEE-IN-LIEU OF TAX STATUTES.
Be it enacted by the General Assembly of the State of South Carolina:
Income tax moratorium - eligibility extended
SECTION 1. A. Section 12-6-3365 of the 1976 Code, as last amended by Act 172 of 2004, is further amended to read:
"Section 12-6-3365. (A) A taxpayer creating and maintaining at least one hundred full-time new jobs, as defined in Section 12-6-3360(M), at a facility of a type identified in Section 12-6-3360(M) is allowed a moratorium on state corporate income taxes imposed pursuant to Section 12-6-530 for the ten taxable years beginning the first full taxable year after the taxpayer qualifies and ending either ten years from that year or the year when the taxpayer's number of full-time new jobs falls below one hundred, whichever is earlier.
(B)(1) To qualify for the moratorium pursuant to subsection (A), a taxpayer shall:
(a)(i) create at least one hundred full-time new jobs at a facility in a county with an average annual unemployment rate of at least twice the state average during each of the last two completed calendar years, based on the most recent unemployment rates available, or that is one of the three lowest per capita income counties, based on the average of the three most recent years of available average per capita income data; and
(ii) invest at least ninety percent of its total investment in this State in the moratorium county; or
(b)(i) create at least one hundred full-time new jobs, and invest at least one hundred fifty million dollars, at a manufacturing facility in a county with an average annual unemployment rate of at least twice the state average during each of the last two completed calendar years, based on the most recent unemployment rates available, or that is one of the three lowest per capita income counties, based on the average of the three most recent years of available average per capita income data; and
(ii) create at least one hundred full-time new jobs, and invest at least one hundred fifty million dollars, at a manufacturing facility in a second county which is designated as distressed, least developed, or underdeveloped pursuant to Section 12-6-3360; and
(iii) invest at least ninety percent of its total investment in this State in one or both of the counties specified in subsubitems (i) and (ii) of subsection (B)(1)(b);
(2) Taxpayers qualifying under subsection (B)(1)(b) are entitled to the moratorium for separate ten-year periods under subsection (A) for income attributable to facilities in each county, beginning with the first full taxable year after the taxpayer qualifies in the respective county and ending with respect to the income attributable to facilities in that county either ten years from that year or the year when the taxpayer's number of full-time new jobs in that county falls below one hundred, whichever is earlier. Loss of the moratorium in one county due to job reduction does not impact the moratorium for income attributable to facilities in the other county.
(C) During the applicable moratorium period, the moratorium applies to that portion of the taxpayer's corporate income or premium tax that represents the ratio of the taxpayer's new investment in the qualifying county or counties to its total investment in this State.
(D) The department shall prescribe certification procedures to ensure that the taxpayer may claim the moratorium in future years even if a particular county is removed from the list of qualifying counties.
(E)(1) If the taxpayer creates and maintains at least two hundred full-time new jobs at the facility specified in subsection (B)(1)(a) within five years from the date the taxpayer creates the first full-time new job at the facility, the moratorium period is fifteen taxable years, beginning the first full taxable year after the taxpayer qualifies and ending either fifteen years from that year or the year when the taxpayer's number of full-time new jobs falls below two hundred, whichever is earlier.
(2) If the taxpayer creates and maintains at least two hundred full-time new jobs at facilities in either or both of the counties specified in subsection (B)(1)(b) within five years from the date the taxpayer creates the first full-time new job in either of the counties, the moratorium period is fifteen taxable years with respect to income attributable to facilities in the county or counties where the taxpayer qualifies, beginning the first full taxable year after the taxpayer qualifies in a respective county and ending either fifteen years from that year or the year when the taxpayer's number of full-time new jobs in the respective county fall below two hundred, whichever is earlier.
(3) Notwithstanding any other provision of this section, if the taxpayer qualifies in one or more counties for the fifteen-year period specified in this subsection and subsequently within the ten-year period specified in subsection (A) reduces the number of jobs at any such facility to fewer than two hundred but more than one hundred, the taxpayer is entitled to the moratorium with respect to such facility for the balance of the ten-year period. Loss of the fifteen-year period in one county described in subsection (B)(1)(b) due to job reduction does not impact the fifteen-year period for income attributable to facilities in the other county.
(F) The taxpayer must create the one hundred full-time new jobs within five years from the date it creates the first full-time new job in the county specified in subsections (B)(1)(a)(i) or (B)(1)(b)(i), except that the taxpayer must have hired its first full-time new employee in the county specified in subsections (B)(1)(a)(i) or (B)(1)(b)(i) by July 1, 2005, to be eligible for either the ten-year or fifteen-year moratorium.
(G) Any moratorium allowed under subsection (B)(1)(b) is not affected if the taxpayer changes its form of business organization within the ten or fifteen-year moratorium period.
(H) For purposes of qualification under subsection (B)(1)(b) and all related provisions, the term 'taxpayer' means a single taxpayer or, collectively, a group of one or more affiliated taxpayers."
B. The amendment to Section 12-6-3365 of the 1976 Code as contained in subsection (A) of this section does not affect the provisions of Section 3, Act 277 of 2000, as that section relates to the repeal of Section 12-6-3365 of the 1976 Code.
Enhanced investment; fee-in-lieu of tax
SECTION 2. Section 12-44-30(7) of the 1976 Code, as last amended by Act 69 of 2003, is further amended by adding:
"(7) 'Enhanced investment' means a project which results in a total investment:
(a) by a single sponsor of at least two hundred million dollars, resulting in a total investment of at least four hundred million dollars when added to the previous investments, and creating at least two hundred new full-time jobs at the project;
(b) by a single sponsor investing at least four hundred million dollars and which is creating at least two hundred new full-time jobs at the project;
(c) by a single sponsor investing at least six hundred million dollars in this State;
(d) at least four hundred million dollars in the building of a project consisting of gas-fired combined-cycle power facility by a sponsor which creates at least twenty-five full-time jobs as defined in Section 12-6-3360(M) at that project and invests an additional five hundred million dollars in this State. The investment must be made by a sponsor which consists of a corporation, its subsidiaries, and its limited liability companies. The new full-time jobs requirement of this subsection does not apply to a taxpayer which paid more than fifty percent of all property taxes actually collected in the county for more than twenty-five years ending on the date of the fee agreement; or
(e) that satisfies the requirements of Section 11-41-30(2)(a) and for which the Secretary of Commerce has delivered the certification described in Section 11-41-70(2)(a)."
Fee-in-lieu of tax
SECTION 3. Section 4-12-30(D)(4)(a) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(a) The assessment ratio may not be lower than four percent:
(i) in the case of a single sponsor investing at least two hundred million dollars, resulting in a total investment of at least four hundred million dollars when added to previous investments by a sponsor, and creating at least two hundred new full-time jobs at a project;
(ii) in the case of a single sponsor investing at least four hundred million dollars and which is creating at least two hundred new full-time jobs at a project;
(iii) in the case of a single sponsor investing at least six hundred million dollars in this State;
(iv) in the case of a business including a corporation, its subsidiaries, and its limited liability company members, that:
A. builds a project consisting of gas-fired combined-cycle power facility and invests at least four hundred million dollars and creates at least twenty-five full-time jobs as defined in Section 12-6-3360(M) at that project; and
B. invests an additional five hundred million dollars in this State; or
(v) in the case of a project that satisfies the requirements of Section 11-41-30(2)(a) and for which the Secretary of Commerce has delivered the certification described in Section 11-41-70(2)(a)."
Fee-in-lieu of tax
SECTION 4. Section 4-29-67(D)(4)(a) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(a) The assessment ratio may not be lower than four percent:
(i) in the case of a single sponsor investing at least two hundred million dollars, resulting in a total investment of at least four hundred million dollars when added to previous investments by a sponsor, and which is creating at least two hundred new full-time jobs at the project;
(ii) in the case of a single sponsor investing at least four hundred million dollars and which is creating at least two hundred new full-time jobs at the project;
(iii) in the case of a single sponsor which is investing at least six hundred million dollars in this State;
(iv) in the case of a business including a corporation, its subsidiaries, and its limited liability company members, that:
A. builds a project consisting of gas-fired combined-cycle power facility and invests at least four hundred million dollars and creates at least twenty-five full-time jobs as defined in Section 12-6-3360(M) at that project; and
B. invests an additional five hundred million dollars in this State; or
(v) in the case of a project that satisfies the requirements of Section 11-41-30(2)(a) and for which the Secretary of Commerce has delivered the certification described in Section 11-41-70(2)(a)."
Time effective
SECTION 5. This act takes effect upon approval by the Governor.
Ratified the 18th day of May, 2005.
Approved the 23rd day of May, 2005.
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