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A354, R355, S1141
Sponsors: Senators McConnell, Rankin, Martin, Leventis, Peeler, Alexander, Hayes, Setzler, Hutto, Ceips, Knotts and Malloy
Document Path: l:\s-jud\bills\mcconnell\jud0053.nvc.doc
Introduced in the Senate on February 21, 2008
Introduced in the House on April 30, 2008
Last Amended on May 28, 2008
Passed by the General Assembly on June 4, 2008
Governor's Action: June 11, 2008, Vetoed
Legislative veto action(s): Veto overridden
Summary: Energy Efficient Manufactured Homes Incentive Program
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 2/21/2008 Senate Introduced and read first time SJ-55 2/21/2008 Senate Referred to Committee on Finance SJ-55 4/23/2008 Senate Committee report: Favorable with amendment Finance SJ-21 4/24/2008 Senate Committee Amendment Adopted SJ-84 4/24/2008 Senate Amended SJ-84 4/24/2008 Senate Read second time SJ-84 4/29/2008 Senate Read third time and sent to House SJ-54 4/30/2008 House Introduced and read first time HJ-8 4/30/2008 House Referred to Committee on Labor, Commerce and Industry HJ-9 5/21/2008 House Committee report: Favorable with amendment Labor, Commerce and Industry HJ-6 5/27/2008 House Amended HJ-18 5/27/2008 House Read second time HJ-20 5/28/2008 House Read third time and returned to Senate with amendments HJ-21 5/28/2008 Senate House amendment amended SJ-116 5/28/2008 Senate Returned to House with amendments SJ-116 6/3/2008 Scrivener's error corrected 6/4/2008 House Concurred in Senate amendment and enrolled HJ-99 6/5/2008 Ratified R 355 6/11/2008 Vetoed by Governor 6/25/2008 Senate Veto overridden by originating body Yeas-43 Nays-0 6/25/2008 House Veto overridden Yeas-98 Nays-0 7/10/2008 Copies available 7/10/2008 Effective date See Act for Effective Date 7/14/2008 Act No. 354
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
(A354, R355, S1141)
AN ACT TO AMEND SECTION 12-36-2110, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CALCULATION OF TAX ON MANUFACTURED HOMES, SO AS TO REFINE THE DEFINITION OF A MANUFACTURED HOME THAT IS SUBJECT TO A MAXIMUM SALES TAX BECAUSE IT MEETS CERTAIN ENERGY EFFICIENCY STANDARDS; BY ADDING ARTICLE 10 TO CHAPTER 52, TITLE 48 SO AS TO ESTABLISH AN INCENTIVE PROGRAM PROVIDING A NONREFUNDABLE INCOME TAX CREDIT FOR THE PURCHASE AND INSTALLATION OF ENERGY EFFICIENT MANUFACTURED HOMES IN SOUTH CAROLINA; TO AMEND SECTION 12-6-3587, AS AMENDED, RELATING TO A TAX CREDIT FOR PURCHASE AND INSTALLATION OF A SOLAR ENERGY SYSTEM, SO AS TO INCLUDE THE PURCHASE AND INSTALLATION OF A SMALL HYDROPOWER SYSTEM AND TO DEFINE SUCH A SYSTEM; AND TO AMEND SECTION 12-14-80, AS AMENDED, RELATING TO THE ECONOMIC IMPACT ZONE TAX CREDIT, SO AS TO RESTATE THE CREDIT AS AN INVESTMENT TAX CREDIT, PROVIDE THAT THE CREDIT IS AVAILABLE FOR THE PLACEMENT IN SERVICE OF CERTAIN QUALIFIED EQUIPMENT AND A COMMITMENT TO THE REQUIRED CAPITAL INVESTMENT, PROVIDE FOR QUALIFICATIONS FOR AND LIMITATIONS ON THE CREDIT, AND TO PROVIDE FOR THE PROCESS FOR CLAIMING THE CREDIT.
Be it enacted by the General Assembly of the State of South Carolina:
Calculation of tax on manufactured home
SECTION 1. Section 12-36-2110(B) of the 1976 Code, as last amended by Act 12 of 2005, is further amended to read:
"(B) For the sale of a manufactured home, as defined in Section 40-29-20, the tax is calculated as follows:
(1) subtract trade-in allowance from the sales price;
(2) multiply the result from item (1) by sixty-five percent;
(3) if the result from item (2) is no greater than six thousand dollars, multiply by five percent for the amount of tax due;
(4) if the result from item (2) is greater than six thousand dollars, the tax due is three hundred dollars plus two percent of the amount greater than six thousand dollars.
However, a manufactured home is exempt from any tax in excess of three hundred dollars that may be due as a result of the calculation in item (4) if it meets these energy efficiency levels: storm or double pane glass windows, insulated or storm doors, a minimum thermal resistance rating of the insulation only of R-11 for walls, R-19 for floors, and R-30 for ceilings. However, variations in the energy efficiency levels for walls, floors, and ceilings are allowed and the exemption on tax due above three hundred dollars applies if the total heat loss does not exceed that calculated using the levels of R-11 for walls, R-19 for floors, and R-30 for ceilings. The edition of the American Society of Heating, Refrigerating, and Air Conditioning Engineers Guide in effect at the time is the source for heat loss calculation. Notwithstanding the provisions of this subsection, from July 1, 2009, to July 1, 2019, a manufactured home is exempt from any tax that may be due as a result of the calculation in this subsection if it has been designated by the United States Environmental Protection Agency and the United States Department of Energy as meeting or exceeding each agency's energy saving efficiency requirements or has been designated as meeting or exceeding such requirements under each agency's ENERGY STAR program. The dealer selling the manufactured home must maintain records, on forms provided by the State Energy Office, on each manufactured home sold that meets the energy efficiency levels provided for in this subsection. These records must be maintained for three years and must be made available for inspection upon request of the Department of Consumer Affairs or the State Energy Office.
The maximum tax authorized by this subsection does not apply to a single-family modular home regulated pursuant to Chapter 43, Title 23."
Energy efficient manufactured home incentive
SECTION 2. Chapter 52, Title 48 of the 1976 Code is amended by adding:
Section 48-52-870. (A) The Energy Efficient Manufactured Homes Incentive Program is established to provide financial incentives for the purchase and installation of energy efficient manufactured homes in South Carolina. Any person who purchases a manufactured home designated by the United States Environmental Protection Agency and the United States Department of Energy as meeting or exceeding each agency's energy saving efficiency requirements or which has been designated as meeting or exceeding such requirements under each agency's ENERGY STAR program from a retail dealership licensed by the South Carolina Manufactured Housing Board for use in this State is eligible for a nonrefundable income tax credit equal to seven hundred fifty dollars. The credit may be claimed beginning July 1, 2009, and no later than July 1, 2019.
(B) The South Carolina Energy Office shall adopt rules pursuant to develop tax credit applications and administer the issuance of tax credits and must track and report on the fiscal and energy impacts of this program."
Tax credit for solar and hydropower systems
SECTION 3. Section 12-6-3587 of the 1976 Code, as last amended by Act 116 of 2007, is further amended to read:
"Section 12-6-3587. (A) There is allowed as a tax credit against the income tax liability of a taxpayer imposed by this chapter an amount equal to twenty-five percent of the costs incurred by the taxpayer in the purchase and installation of a solar energy system or small hydropower system for heating water, space heating, air cooling, energy-efficient daylighting, heat reclamation, energy-efficient demand response, or the generation of electricity in or on a facility in South Carolina and owned by the taxpayer. The tax credit allowed by this section must not be claimed before the completion of the installation. The amount of the credit in any year may not exceed three thousand five hundred dollars for each facility or fifty percent of the taxpayer's tax liability for that taxable year, whichever is less. If the amount of the credit exceeds three thousand five hundred dollars for each facility, the taxpayer may carry forward the excess for up to ten years.
(B) 'System' includes all controls, tanks, pumps, heat exchangers, and other equipment used directly and exclusively for the solar energy system. The term 'system' does not include any land or structural elements of the building such as walls and roofs or other equipment ordinarily contained in the structure. A credit may not be allowed for a solar system unless the system is certified for performance by the nonprofit Solar Rating and Certification Corporation or a comparable entity endorsed by the State Energy Office.
(C) For purposes of this section, 'small hydropower system' means new generation capacity on a nonimpoundment or on an existing impoundment that:
(1) meets licensing standards as defined by the Federal Energy Regulatory Commission (FERC);
(2) is a run-of-the-river facility with a capacity not to exceed 5MW; or
(3) consists of a turbine in a pipeline or in an irrigation canal."
Investment tax credit
SECTION 4. A. Section 12-14-80 of the 1976 Code, as last amended by Act 116 of 2007, is further amended to read:
"Section 12-14-80. (A) There is allowed an investment tax credit for any taxable year in which the taxpayer places in service qualified manufacturing and productive equipment and which taxpayer:
(1) is engaged in this State in at least one economic impact zone, as defined in Section 12-14-30(1), in an activity or activities listed under the North American Industry Classification System Manual (NAICS) Section 326;
(2) is employing five thousand or more full-time workers in this State and having a total capital investment in this State of not less than two billion dollars; and
(3) commits to invest five hundred million dollars in capital investment in this State between January 1, 2006, and July 1, 2011.
(B) For purposes of this section, 'qualified manufacturing and productive equipment property' means property that satisfies the requirements of Section 12-14-60(B)(1)(a), (b), and (c).
(C) The amount of the credit allowed by this section is equal to the aggregate amount computed based on Section 12-14-60(A)(2).
(D) A taxpayer that qualifies for the tax credit allowed by this section may claim the credit allowed by this section in addition to the credit allowed by Section 12-6-3360 as a credit against withholding taxes imposed by Chapter 8 of this title. The taxpayer must first apply the credit allowed by this section and Section 12-6-3360 against income tax liability. To the extent that the taxpayer has unused credit pursuant to this section for the taxable year after the application of the credits allowed by this section and Section 12-6-3360 against income tax liability, the taxpayer may claim the excess credit as a credit against withholding taxes on its four quarterly withholding tax returns for the taxpayer's taxable year; except that the credit claimed against withholding tax may not exceed fifty percent of the withholding tax shown as due on the return before the application of other credits including other credits pursuant to Section 12-10-80 or 12-10-81. For the period July 1, 2007, to June 30, 2008, a taxpayer using this section may not reduce its state withholding tax to less than the withholding tax remitted for the period June 30, 2006, to July 1, 2007.
(E) Unused credits allowed pursuant to this section may be carried forward for use in a subsequent tax year. During the first ten years of each tax credit carryforward, the credit may not reduce a taxpayer's state income tax liability by more than fifty percent, and for a subsequent year the credit carryforward may not reduce a taxpayer's state income tax liability by more than twenty-five percent. Investment tax credit carryforwards pursuant to this section and credit carryforwards pursuant to Section 12-6-3360 must first be used as a credit against income taxes for that year. Any excess may be used pursuant to subsection (D) as a credit against withholding taxes; except that the limitations of subsection (D) apply each year and the economic impact zone tax credit carryforwards that existed on the effective date of Act 83 of 2007 may not be used to reduce withholding tax liabilities pursuant to this section.
(F) The amount of credit used against withholding taxes must reduce the amount of credit that may be used against income tax liability. The amount of credit used against withholding taxes must reduce the amount of credit that may be used against income taxes.
(G) If the taxpayer disposes of or removes qualified manufacturing and productive equipment property from the State during any taxable year and before the end of applicable recovery period for such property as determined under Section 168(e) of the Internal Revenue Code, then the income tax due pursuant to this chapter for the current taxable year must be increased by an amount of any credit claimed in prior years with respect to that property, determined by assuming the credit is earned ratably over the useful life of the property and recapturing pro rata the unearned portion of the credit. This recapture applies to credit previously claimed as a credit against income taxes pursuant to this chapter or withholding tax pursuant to Chapter 8.
(H) For South Carolina income tax purposes, the basis of the qualified manufacturing and productive equipment property must be reduced by the amount of any credit claimed with respect to the property, whether claimed as a credit against income taxes or withholding. If a taxpayer is required to recapture the credit in accordance with subsection (G), the taxpayer may increase the basis of the property by the amount of basis reduction attributable to claiming the credit in prior years. The basis must be increased in the year in which the credit is recaptured.
(I) A credit must not be taken pursuant to this section for capital investments placed in service outside of an economic impact zone until the taxpayer has invested two hundred million dollars of the five hundred million-dollar investment requirement described in subsection (A)(3), and the taxpayer files a statement with the department stating that it: (i) commits to invest a total of five hundred million dollars in this State between January 1, 2006, and July 1, 2011; and (ii) shall refund any credit received with interest at the rate provided for underpayments of tax if it fails to meet the requirement of subsection (A)(3). This statement and proof of qualification must be filed with the notice required in subsection (J). Credit is not allowed pursuant to this section for property placed in service before June 30, 2007. For credit claimed before the investment of the full five hundred million dollars, the company claiming the credit must execute a waiver of the statute of limitations pursuant to Section 12-54-85, allowing the department to assess the tax for a period commencing with the date that the return on which the credit is claimed is filed and ending three years after the company notifies the department that the full five hundred million dollar investment has been made. A waiver of the statute of limitations must accompany the return on which the credit is claimed.
(J) The taxpayer shall notify the department before taking any credits pursuant to this section. Taxpayer shall state it has met the requirements of subsection (A). Additionally, in a taxable year after the year of qualification for credit pursuant to this section, the taxpayer shall include with its tax return for that year: (i) a statement that the taxpayer has continued to meet the requirements of subsections (A)(1) and (A)(2); (ii) the reconciliation required in subsection (D); and (iii) any statement and support for subsection (I)."
B. This subsection takes effect July 1, 2007, and applies for capital investments placed in service outside of an economic impact zone after June 30, 2007, and for quarterly state withholding returns due on and after that date, provided that for the period July 1, 2007, to June 30, 2008, a taxpayer using this section may not reduce its state withholding tax to less than the withholding tax remitted for the period June 30, 2006, to July 1, 2007.
SECTION 5. This act takes effect July 1, 2009.
Ratified the 5th day of June, 2008.
Vetoed by the Governor -- 6/11/08.
Veto overridden by Senate -- 6/25/08.
Veto overridden by House -- 6/25/08.
This web page was last updated on Monday, October 10, 2011 at 1:31 P.M.