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Bill 4887

Indicates Matter Stricken
Indicates New Matter

Indicates Matter Stricken

Indicates New Matter

COMMITTEE REPORT

April 17, 2008

H. 4887

S. Printed 4/17/08--H.

Read the first time March 26, 2008.

To whom was referred a Bill (H. 4887) to amend the Code of Laws of South Carolina, 1976, by adding Sections 12-54-52 and 12-54-53 so as to provide that, for purposes of taxes, etc., respectfully

That they have duly and carefully considered the same and recommend that the same do pass with amendment:

Amend the bill, as and if amended, (B)(2) as found in SECTION 40, page 54, line 16, by deleting / six / and inserting / three /.

Amend the bill further, by adding an appropriately numbered SECTION to read:

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

"Section 12-6-3680.    (A)    For purposes of this section:

(1)    'Recycling facility' means a facility located in South Carolina that:

(a)    engages in recycling as defined in Section 44-96-40(37); and

(b)    manufactures product for sale composed of over fifty percent post-consumer recycled content and pre-consumer recycled content by weight or by volume.

(B)    A taxpayer owning and operating a recycling facility as defined in subsection (A) is allowed a refundable income tax credit equal to the yearly amount expended by the recycling facility for electric service used in the manufacturing process multiplied by the percentage of recycled content calculated in subsection (A)(1)(b) of this section, and multiplied by the following:

(1)    one percent in the first year the credit is claimed;

(2)    two percent in the second year the credit is claimed;

(3)    three percent in the third year the credit is claimed;

(4)    four percent in the fourth year the credit is claimed; and

(5)    four percent in subsequent years, not to exceed the amount of credit received pursuant to item (4).

(C)    The credit is first allowed against returns due to be filed in Fiscal Year 2009-2010. A credit is not allowed and may not be claimed for a taxable year except as provided in subsection (E).

(D)    A taxpayer may claim the credit allowed in this section only on the taxpayer's annual return. The taxpayer shall provide all information that the department determines is necessary for the calculation and administration of the credit.

(E)    Beginning with the February 15, 2009, forecast by the Board of Economic Advisors of annual general fund revenue growth for the upcoming fiscal year, and annually after that, if the forecast of that growth equals at least five percent of the most recent estimate by the board of general fund revenues for the current fiscal year, then the applicable credit is allowed for the taxable year, returns for which are due in the fiscal year beginning July first. If the February fifteenth forecast or adjusted forecast annual general fund revenue growth for the upcoming fiscal year meets the requirement for the credit, the board promptly shall certify this result in writing to the department.

(F)    The recycling facility must maintain or increase the number of employees in South Carolina in order to qualify for the credit. The benchmark for the number of employees of a recycling facility is the number of employees submitted to the department in the initial claim seeking the credit. The recycling facility must submit a notarized certification of the number of employees to the Department of Revenue each year."/

Amend the bill further, by adding an appropriately numbered SECTION to read:

/    SECTION    ___.    Section 12-21-3970 of the 1976 Code is amended to read:

"Section 12-21-3970.    For each licensed nonprofit organization the promoter manages, operates, or conducts bingo, the promoter must shall purchase a promoter's license as provided in Section 12-21-3950 before managing, operating, or conducting bingo. No promoter is permitted more than five licenses. This license must be prominently displayed at the location where bingo is conducted." /

Amend the bill further, Section 12-54-85(C)(4), (5), and (6) as found in SECTION 28, page 28, lines 8-26, by deleting items (4), (5), and (6) in their entirety and inserting:

/        (4)    the person liable for any taxes consents in writing, before the expiration of the time prescribed in this section for assessing taxes due, to the assessment of the taxes after the time prescribed by this section; or

(5)    the tax is a use tax imposed under Chapter 36 of this title, or a local use tax administered and collected by the department on behalf of a local jurisdiction, and the assessment of the use tax is the result of information received from, or as a result of exchange agreements with, other state or local taxing authorities, regional or national tax administration organizations, or the federal government. The use taxes in this case may be assessed at any time within twelve months after the department receives the information, but no later than seventy-two months after the last day the use tax may be paid without penalty. /

Amend the bill further, Section 12-6-1120(4) as found in SECTION 48, page 94, line 17, by deleting / Tier III / and inserting / Tier II /.

Amend the bill further, Section 12-28-955 as found in SECTION 49, beginning on page 94, by deleting lines 22-37 in their entirety and inserting:

/    "Section 12-28-955.    (A)    Every supplier and permissive supplier who properly remits user fees under this chapter is allowed to retain one-tenth percent of the user fee imposed by this chapter and collected and remitted by that supplier in accordance with this chapter to cover the cost of administration including reporting, audit compliance, dye injection, and shipping paper preparation. A transporter licensed to distribute motor fuel in this State is eligible for reimbursement of its initial expenses and for recurring administrative costs to comply with Department of Revenue electronic reporting requirements. A transporter is entitled to a one-time reimbursement of its initial expenses not to exceed two thousand dollars. In addition, a transporter is entitled to an annual reimbursement of its administrative costs equal to three dollars for each one hundred thousand gallons, or fraction of it, of motor fuel transported based on a monthly average not to exceed twelve hundred dollars for each year. /

Amend the bill further, SECTION 19 as found on pages 23, lines 1-43, and 24, lines 1-34, by deleting SECTION 19 in its entirety and inserting / SECTION 19.    Deleted /.

Renumber sections to conform.

Amend title to conform.

DANIEL T. COOPER for Committee.

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 12-54-52 AND 12-54-53 SO AS TO PROVIDE THAT, FOR PURPOSES OF TAXES ADMINISTERED BY THE DEPARTMENT OF REVENUE, INTERNAL REVENUE CODE SECTIONS 6694 AND 6695, RESPECTIVELY, ARE ADOPTED; AND TO AMEND SECTION 12-6-50, AS AMENDED, RELATING TO IRC SECTIONS ADOPTED BY THIS STATE, SO AS TO CONFORM TO THOSE ADDITIONS; TO AMEND SECTION 4-9-195, AS AMENDED, RELATING TO SPECIAL PROPERTY TAX ASSESSMENTS GRANTED TO CERTAIN PROPERTY, SO AS TO FURTHER PROVIDE FOR CERTIFICATION OF LOW AND MODERATE INCOME RENTAL PROPERTY THAT DOES OR DOES NOT QUALIFY FOR A HISTORICAL DESIGNATION; TO AMEND SECTION 11-35-5230, AS AMENDED, RELATING TO REGULATIONS FOR NEGOTIATIONS WITH STATE MINORITY FIRMS, SO AS TO CHANGE STATUTORY REFERENCES FROM "MINORITY FIRMS" TO "SOCIALLY AND ECONOMICALLY DISADVANTAGED SMALL BUSINESSES", AND TO CHANGE THE DELINEATION OF THE TEN-YEAR PERIOD FOR WHICH THE SUBJECT TAX CREDIT MAY BE CLAIMED; TO AMEND SECTION 11-45-55, AS AMENDED, RELATING TO TAX CREDIT CERTIFICATES IN CONNECTION WITH THE VENTURE CAPITAL INVESTMENT ACT, SO AS TO PROVIDE FOR THE EXCHANGE OF INFORMATION AMONG CERTAIN DEPARTMENTS AND THEIR EMPLOYEES AND AGENTS; TO AMEND SECTION 12-2-20, AS AMENDED, RELATING TO THE DEFINITIONS OF "PERSON" AND "INDIVIDUAL" FOR PURPOSES OF TAXES ADMINISTERED BY THE DEPARTMENT OF REVENUE, SO AS TO CLARIFY THE MEANING OF "PERSON"; TO AMEND SECTION 12-6-590, AS AMENDED, RELATING TO TREATMENT OF "S" CORPORATIONS FOR TAX PURPOSES, SO AS TO INCLUDE ADDITIONAL REFERENCES TO THE INTERNAL REVENUE CODE FOR SIMILAR STATE TREATMENT; TO AMEND SECTION 12-6-2250, AS AMENDED, RELATING TO THE APPORTIONMENT OF INCOME DERIVED BY A TAXPAYER TO THE TAXPAYER'S CONDUCT OF BUSINESS IN THIS STATE, SO AS TO CHANGE THE WORD "ALLOCATED" TO "APPORTIONED"; TO AMEND SECTION 12-6-3360, AS AMENDED, RELATING TO THE JOB TAX CREDIT AGAINST THE STATE INCOME TAX, SO AS TO DELETE A REFERENCE TO GENERAL CONTRACTORS IN CONNECTION WITH THE TERM "CORPORATE OFFICE"; TO AMEND SECTION 12-6-3376, RELATING TO A CREDIT AGAINST THE STATE INCOME TAX FOR THE PURCHASE OR LEASE OF A PLUG-IN HYBRID VEHICLE, SO AS TO REQUIRE THAT THE CREDIT BE THE FIRST CLAIMED FOR THAT VEHICLE, TO PROVIDE FOR REGULATIONS PROMULGATED BY THE STATE ENERGY OFFICE, TO FURTHER PROVIDE FOR CLAIMING THE CAPPED CREDIT, AND TO PROVIDE FOR THE EFFECT OF A REPEAL OF THE CAPS ON THE CREDIT; TO AMEND SECTION 12-6-3377, RELATING TO THE ALTERNATIVE MOTOR VEHICLE FUEL CREDIT AGAINST THE STATE INCOME TAX, SO AS TO FURTHER PROVIDE FOR THE CALCULATION OF THE CREDIT FOR BUSINESS USE AND TO DELETE A PROVISION DEEMING THE FEDERAL TAX TREATMENT OF THE ALTERNATIVE FUEL CREDIT TO BE PERMANENT; TO AMEND SECTION 12-6-3535, AS AMENDED, RELATING TO A CREDIT AGAINST THE STATE INCOME TAX FOR REHABILITATION OF A HISTORIC STRUCTURE, SO AS TO INCLUDE A CREDIT AGAINST THE CORPORATE LICENSE FEES; TO AMEND SECTION 12-6-3585, AS AMENDED, RELATING TO THE INDUSTRY PARTNERSHIP FUND CREDIT AGAINST STATE TAXES, SO AS TO ALLOW THE CREDIT TO BE USED AGAINST THE TAXPAYER'S APPLICABLE STATE INCOME TAX, BANK TAX, INSURANCE PREMIUM TAX, OR LICENSE FEE LIABILITY; TO AMEND SECTION 12-6-3587, AS AMENDED, RELATING TO THE CREDIT AGAINST STATE INCOME TAX FOR THE PURCHASE AND INSTALLATION OF A SOLAR ENERGY SYSTEM, SO AS TO PROVIDE THAT THE CREDIT IS AVAILABLE FOR A BUILDING, OR BUILDINGS ON A SINGLE SITE, THAT THE CREDIT BE CLAIMED IN THE TAX YEAR THE INSTALLATION IS COMPLETED, AND THAT THE STATE ENERGY OFFICE PRESCRIBE CERTIFICATION REQUIREMENTS; TO AMEND SECTION 12-6-3630, RELATING TO A CREDIT AGAINST CERTAIN STATE TAXES FOR A CONTRIBUTION TO THE SOUTH CAROLINA HYDROGEN INFRASTRUCTURE DEVELOPMENT FUND, SO AS TO FURTHER PROVIDE FOR CLAIMING THE CREDIT; TO AMEND SECTION 12-6-5060, AS AMENDED, RELATING TO THE DESIGNATION OF CHARITABLE CONTRIBUTIONS ON THE STATE INCOME TAX RETURN, SO AS TO CHANGE AN ORGANIZATION'S NAME FROM "THE GIFT OF LIFE TRUST FUND OF SOUTH CAROLINA" TO "DONATE LIFE SOUTH CAROLINA"; TO AMEND SECTION 12-8-1530, RELATING TO WITHHOLDING AND REPORTING TAXES ON INCOME, SO AS TO AUTHORIZE THE DEPARTMENT OF REVENUE TO ALLOW A TAXPAYER TO WITHHOLD AND REPORT TAXES ANNUALLY ON INCOME FROM CERTAIN ACTIVITIES; TO AMEND SECTION 12-10-80, AS AMENDED, RELATING TO THE JOB DEVELOPMENT CREDIT IN CONNECTION WITH THE ENTERPRISE ZONE ACT OF 1995, SO AS TO PROVIDE FOR THE TREATMENT OF A RETURN OF AN OVERPAYMENT OF WITHHOLDING RESULTING FROM CLAIMING THE CREDITS; TO AMEND SECTION 12-20-100, RELATING TO LICENSE TAX ON UTILITIES BASED ON PROPERTY VALUE AND GROSS RECEIPTS, SO AS TO DELETE A REFERENCE TO THE DEPARTMENT OF REVENUE; TO AMEND SECTION 12-20-105, AS AMENDED, RELATING TO CREDITS AGAINST ITS LICENSE TAX LIABILITY FOR A COMPANY WHO PAYS CASH FOR INFRASTRUCTURE FOR AN ELIGIBLE PRODUCT, SO AS TO PROVIDE FOR THE CONTINUATION OF ELIGIBILITY FOR THE CREDIT UNDER CERTAIN CIRCUMSTANCES FOR A COMPANY THAT CONTRIBUTES THE CASH TO A COUNTY OR POLITICAL SUBDIVISION FOR AN ELIGIBLE PRODUCT EVEN IF THE PROJECT IS DISPOSED OF OR REMAINS UNCOMPLETED; TO AMEND SECTION 12-36-910, AS AMENDED, RELATING TO THE STATE SALES TAX, SO AS TO DELETE A REDUNDANCY; TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO EXEMPTIONS FROM THE STATE'S SALES TAX, SO AS TO SPECIFY NOTIFICATION REQUIREMENTS FOR CLAIMING THE EXEMPTION ON THE CONSTRUCTION MATERIALS USED IN CERTAIN SINGLE MANUFACTURING AND DISTRIBUTION FACILITIES AND TO PROVIDE FOR ASSESSMENT OF ANY TAX DUE, TO SPECIFY THAT THE EXEMPTION IN CONNECTION WITH THE SALE OF CURRENCY APPLIES TO CURRENCY THAT IS LEGAL TENDER, AND TO CLARIFY THE EXEMPTION AS TO DURABLE MEDICAL EQUIPMENT AND RELATED SUPPLIES; TO AMEND SECTION 12-37-90, RELATING TO RESPONSIBILITIES AND DUTIES OF ASSESSORS, SO AS TO DISALLOW THE ALTERATION OF AN ASSESSMENT BY THE DEPARTMENT OF REVENUE; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTIES EXEMPTED FROM THE ASSESSMENT OF PROPERTY TAXES, SO AS TO CORRECT A CROSS-REFERENCE AND TO MAKE A DEFINITIONAL CHANGE FOR "FULL-TIME" JOB; TO AMEND SECTION 12-44-30, AS AMENDED, RELATING TO DEFINITIONS FOR PURPOSES OF THE FEE IN LIEU OF TAX SIMPLIFICATION ACT, SO AS TO MODIFY A CROSS-REFERENCE IN THE DEFINITION OF "SPONSOR"; TO AMEND SECTION 12-54-85, AS AMENDED, RELATING TO TIME LIMITATION FOR ASSESSMENT OF TAXES OR FEES BY THE DEPARTMENT OF REVENUE, SO AS TO PROVIDE FOR THE INSTANCE OF A TAXPAYER LACKING A VALID BUSINESS PURPOSE; TO AMEND SECTION 12-54-240, AS AMENDED, RELATING TO DISCLOSURE OF RECORDS AND REPORTS BY AGENTS OF THE DEPARTMENT OF REVENUE, SO AS TO PROVIDE THAT THE DISCLOSURE BE WILFUL FOR CRIMINAL PENALTIES AND TERMINATION TO ATTACH AND SO AS TO CITE THE AGENTS AND EMPLOYEES OF SEVERAL AGENCIES; TO AMEND SECTION 12-54-250, AS AMENDED, RELATING TO PAYMENT TO THE DEPARTMENT OF REVENUE IN READILY AVAILABLE FUNDS, SO AS TO REQUIRE THE PAYMENT OF A PERSON OWING FIFTEEN THOUSAND DOLLARS OR MORE OR A WITHHOLDING AGENT MAKING AT LEAST TWENTY-FOUR PAYMENTS A YEAR, TO PROVIDE FOR EXEMPTIONS BY THE DEPARTMENT, AND TO REQUIRE ELECTRONIC FILING OF THE ACCOMPANYING RETURNS; TO AMEND SECTION 12-60-20, AS AMENDED, RELATING TO THE GENERAL ASSEMBLY'S INTENT IN CONNECTION WITH A DISPUTE INTERPRETED AND CONSTRUED PURSUANT TO THE SOUTH CAROLINA REVENUE PROCEDURES ACT, SO AS TO CLARIFY CERTAIN LANGUAGE; TO AMEND SECTION 12-60-510, AS AMENDED, RELATING TO EXHAUSTION OF REMEDIES BEFORE REQUESTING A HEARING BEFORE THE ADMINISTRATIVE LAW COURT IN CONNECTION WITH THE REVENUE PROCEDURES ACT, SO AS TO DISALLOW THE REMOVAL OF AN ASSESSMENT AGAINST A DEFAULTING TAXPAYER BY THE COURT; TO AMEND SECTION 12-63-20, RELATING TO THE ENERGY FREEDOM AND RURAL DEVELOPMENT ACT, SO AS TO DEFINE "BIODIESEL" FOR THAT PURPOSE AND TO REFERENCE THE DATE OF PURCHASE OF THE VEHICLE OR THE CONVERSION EQUIPMENT FOR PURPOSES OF CLAIMING A REBATE AGAINST THE SALES TAX; TO AMEND SECTION 44-43-1360, AS AMENDED, RELATING TO THE CHANGE FROM "GIFT OF LIFE TRUST FUND" TO "DONATE LIFE SOUTH CAROLINA", SO AS TO CORRECT A CROSS-REFERENCE; TO AMEND SECTION 46-3-260, RELATING TO THE ESTABLISHMENT OF THE SOUTH CAROLINA RENEWABLE ENERGY INFRASTRUCTURE DEVELOPMENT FUND, SO AS TO PROVIDE FOR ADMINISTRATION OF THE FUND BY THE DEPARTMENT OF AGRICULTURE IN COORDINATION WITH THE STATE ENERGY OFFICE; TO ADD CHAPTER 64 TO TITLE 12 SO AS TO ENACT THE "SOUTH CAROLINA TEXTILES COMMUNITIES REVITALIZATION ACT", PROVIDING FOR DEFINITIONS OF "TEXTILE MILL", "TEXTILE MILL SITE", AND "NOTICE OF INTENT TO REHABILITATE", AND AN ENHANCED DEFINITION OF "REHABILITATION EXPENSES"; FOR TAX CREDITS AGAINST LOCAL PROPERTY TAXES OR STATE INCOME TAX AND CORPORATE LICENSE TAX, IN ADDITION TO THE TAX CREDIT FOR EXPENSES INCURRED IN THE REHABILITATION OF A HISTORIC STRUCTURE; FOR THE AMOUNT OF THE CREDITS AND PROCESSES FOR CLAIMING THEM INCLUDING REQUIREMENT OF FILING A NOTICE OF INTENT TO REHABILITATE; TO REPEAL CHAPTER 32 OF TITLE 6 RELATING TO THE SOUTH CAROLINA TEXTILES COMMUNITIES REVITALIZATION ACT; TO ADD CHAPTER 66 TO TITLE 12 SO AS TO ENACT THE "SOUTH CAROLINA RETAIL FACILITY REVITALIZATION ACT", PROVIDING FOR DEFINITIONS OF "RETAIL FACILITY", "RETAIL FACILITY SITE", AND "NOTICE OF INTENT TO REHABILITATE", AND AN ENHANCED DEFINITION OF "REHABILITATION EXPENSES"; FOR TAX CREDITS AGAINST LOCAL PROPERTY TAXES OR STATE INCOME TAX AND CORPORATE LICENSE TAX, IN ADDITION TO THE TAX CREDIT FOR EXPENSES INCURRED IN THE REHABILITATION OF A HISTORIC STRUCTURE; FOR THE AMOUNT OF THE CREDITS AND PROCESSES FOR CLAIMING THEM INCLUDING REQUIREMENT OF FILING A NOTICE OF INTENT TO REHABILITATE; TO REPEAL CHAPTER 34 OF TITLE 6 RELATING TO THE SOUTH CAROLINA RETAIL FACILITY REVITALIZATION ACT; TO ADD CHAPTER 68 TO TITLE 12 SO AS TO ENACT THE "SOUTH CAROLINA MOTION PICTURE INCENTIVE ACT OF 2008", REVISING AND UPDATING TAX INCENTIVES FOR MOTION PICTURE PRODUCTIONS IN THIS STATE BY ADDING AND MODERNIZING DEFINITIONS, MAKING TECHNICAL CORRECTIONS, ELIMINATING THE REBATE OF STATE AND LOCAL SALES TAXES PROVIDED UNDER FORMER LAW, PROVIDING FOR THE CARRY FORWARD OF REBATE FUNDS TO AVOID MULTIPLE APPLICATIONS, CLARIFYING THE WAGE INCENTIVE AND RESIDENT HIRING BONUS, ESTABLISHING A FIVE-YEAR APPRENTICESHIP PROGRAM, INCREASING THE NUMBER OF DAYS STATE PROPERTY MAY BE USED WITHOUT FEE FROM SEVEN TO TEN DAYS, AND PROVIDING ADDITIONAL REQUIREMENTS FOR FILM CREDITS FOR THIS STATE; TO REPEAL CHAPTER 62 OF TITLE 12 RELATING TO THE SOUTH CAROLINA MOTION PICTURE INCENTIVE ACT; TO EXEMPT FROM THE ADMISSIONS LICENSE TAX FOR THE FIVE YEARS BEGINNING JULY 1, 2008, ALL PAID ADMISSIONS TO A MOTORSPORTS ENTERTAINMENT COMPLEX AND TO DEFINE MOTORSPORTS ENTERTAINMENT COMPLEX; TO AMEND SECTIONS 4-12-30 AND 4-29-67, BOTH AS AMENDED, RELATING TO FEES IN LIEU OF PROPERTY TAXES, SO AS TO PROVIDE FOR THE TREATMENT OF REPLACEMENT PROPERTY, TO REVISE FEE FILING REQUIREMENTS AND PROVIDE A CIVIL PENALTY FOR VIOLATIONS, TO PROVIDE FURTHER FOR PROPERTY ELIGIBLE FOR THE FEE; TO AMEND SECTION 12-6-3410, AS AMENDED, RELATING TO THE CORPORATE HEADQUARTERS INCOME TAX CREDIT, SO AS TO REVISE DEFINITIONS RELATING TO ENTITIES ELIGIBLE FOR THE CREDIT; TO AMEND SECTIONS 12-44-30, 12-44-50, 12-44-60, 12-44-90, AND 12-44-110, ALL AS AMENDED, RELATING TO DEFINITIONS, FEE AGREEMENTS, REPLACEMENT PROPERTY, FILING OF RETURNS AND PAYMENTS, AND PROPERTY INELIGIBLE FOR FEES IN LIEU OF TAX AND EXCEPTIONS THERETO, FOR PURPOSES OF THE FEE IN LIEU OF TAX SIMPLIFICATION ACT OF 1997, SO AS TO PROVIDE THAT THE BENEFITS OF TAX EXEMPTIONS AND THE FEE AGREEMENT ENDS AFTER THE TERMINATION DATE, TO PROVIDE FOR THE TREATMENT OF REPLACEMENT PROPERTY, TO REVISE FEE FILING REQUIREMENTS AND PROVIDE A CIVIL PENALTY FOR VIOLATIONS, AND TO PROVIDE FURTHER FOR PROPERTY ELIGIBLE FOR THE FEE; TO AMEND SECTION 12-6-3600, AS AMENDED, RELATING TO A TAX CREDIT FOR ETHANOL AND BIODIESEL PRODUCTION FACILITIES, SECTION 12-6-3610, AS AMENDED, RELATING TO A TAX CREDIT FOR THE USE OF PROPERTY IN CONNECTION WITH DISTRIBUTION OR DISPENSING OF RENEWABLE FUEL, SECTION 12-6-3620, AS AMENDED, RELATING TO A TAX CREDIT FOR THE PURCHASE AND INSTALLATION OF EQUIPMENT TO PRODUCE ENERGY FROM BIOMASS RESOURCES, AND SECTION 12-6-3631, RELATING TO A TAX CREDIT FOR BIODIESEL RESEARCH AND DEVELOPMENT EXPENDITURES, ALL SO AS TO PROVIDE FOR THE QUALIFICATION FOR THE CREDITS, THE PROCESSES FOR CLAIMING THE CREDITS FOR THE PREVIOUS CALENDAR YEAR, CLARIFICATION AND DEFINITION OF ADDITIONAL TERMS, AND EFFECTS OF REPEALS OF THE CREDIT CAPS, AND TO DELETE THE CAP ON THE CREDIT IN CONNECTION WITH DISTRIBUTION AND DISPENSING OF RENEWABLE FUEL; 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; TO AMEND SECTION 12-28-110, AS AMENDED, RELATING TO DEFINITIONS IN CONNECTION WITH MOTOR FUELS SUBJECT TO USER FEES, SO AS TO ADD FUEL GRADE ETHANOL; TO AMEND SECTION 12-28-310, AS AMENDED, RELATING TO IMPOSITION OF THE USER FEE ON MOTOR FUELS, SO AS TO INCLUDE FUEL GRADE ETHANOL; TO AMEND SECTION 12-28-710, RELATING TO EXEMPTION FROM THE USER FEE ON MOTOR FUEL, SO AS TO EXCLUDE THE EXEMPTION FOR KEROSENE AND DIESEL FUEL WHEN THEY ARE USED TO PROPEL A VEHICLE ON THE HIGHWAY; TO AMEND SECTION 12-28-790, AS AMENDED, RELATING TO REFUND CLAIMS, SO AS TO FURTHER PROVIDE FOR THE CLAIM PROCESS; TO AMEND SECTION 12-28-905, AS AMENDED, RELATING TO THE USER FEE ON FUELS IMPORTED TO THIS STATE, SO AS TO DELETE REFERENCES TO FUEL IMPORTED BY A LICENSED OCCASIONAL IMPORTER AND MAKE TECHNICAL CHANGES; TO AMEND SECTION 12-28-925, AS AMENDED, RELATING TO COLLECTION OF THE USER FEE BY CERTAIN SELLERS, SO AS TO DELETE REFERENCE TO A BONDED IMPORTER; TO AMEND SECTION 12-28-975, AS AMENDED, RELATING TO DIVERSION OF MOTOR FUEL SUBJECT TO THE USER FEE, SO AS TO PROVIDE TIME REQUIREMENTS FOR A LICENSED OR UNLICENSED IMPORTER FOR NOTIFYING THE STATE OF THE DIVERSION AND PAYING THE FEE TO THE STATE, TO DELETE REFERENCES TO REGULATIONS ESTABLISHING THOSE REQUIREMENTS FOR LICENSED IMPORTERS, AND TO DELETE PROVISIONS FOR SUPPLIERS TO ASSUME THE LIABILITY OF IMPORTERS OR CLAIMS OF EXPORTERS; TO AMEND SECTION 12-28-990, AS AMENDED, RELATING TO LIABILITY OF CERTAIN VENDORS OF MOTOR FUELS SUBJECT TO THE USER FEE FOR THE UNPAID FEE, SO AS TO PROVIDE FOR PAYMENT OF THE FEE; TO AMEND SECTION 12-28-1125, AS AMENDED, RELATING TO IMPORTERS' LICENSES, SO AS TO DELETE REFERENCE TO AN OCCASIONAL IMPORTER'S LICENSE AND TO REDUCE THE FEE FOR A BONDED IMPORTER'S LICENSE; TO AMEND SECTION 12-28-1130, AS AMENDED, RELATING TO TANK WAGON IMPORTERS OF MOTOR FUEL, SO AS TO DELETE THE EXEMPTION FOR AN IMPORTER OTHERWISE LICENSED AS AN IMPORTER; TO AMEND SECTION 12-28-1139, AS AMENDED, RELATING TO LICENSING OF PERSONS LIABLE FOR THE USER FEE, SO AS TO PROVIDE FOR A BLENDER/VENDOR LICENSE AND A MANUFACTURER'S LICENSE; TO AMEND SECTION 12-28-1155, AS AMENDED, RELATING TO BONDING OF SUPPLIERS OF MOTOR FUEL SUBJECT TO THE USER FEE, SO AS TO EXEMPT CERTAIN VENDORS AND MANUFACTURERS FROM THE BONDING REQUIREMENT; TO AMEND SECTION 12-28-1300, AS AMENDED, RELATING TO REPORTING REQUIREMENTS, SO AS TO DELETE REFERENCE TO A CUSTOMER'S USER FEE LIABILITY; TO AMEND SECTION 12-28-1310, AS AMENDED, RELATING TO VERIFIED STATEMENTS FILED BY LICENSED BONDED IMPORTERS, SO AS TO FURTHER PROVIDE FOR THE INFORMATION REQUIRED; TO AMEND SECTION 12-28-1370, AS AMENDED, RELATING TO A TRANSPORTER OF MOTOR FUEL, SO AS TO MAKE A TECHNICAL CHANGE; TO AMEND SECTION 12-28-1390, AS AMENDED, RELATING TO A VENDOR OF FUELS NOT SUBJECT TO THE USER FEE, AND TO ADD SECTIONS 12-28-1396 AND 12-28-1397, ALL SO AS TO PROVIDE FOR THE TIME REQUIREMENTS FOR REPORTING AND PAYING THE USER FEE; TO AMEND SECTIONS 12-28-1535, 12-28-1540, 12-28-1545, 12-28-1720, AND 12-28-1730, ALL AS AMENDED, AND ALL RELATING TO RESTRICTIONS ON SELLING, USING, DELIVERING, STORING, OR IMPORTING MOTOR FUELS SUBJECT TO THE USER FEE, ALL SO AS TO PROVIDE FOR CIVIL PENALTIES AND TO DELETE CRIMINAL PENALTIES EXCEPT AS TO NONPAYMENT OF THE USER FEE OVER TO THE STATE; TO REPEAL SECTION 12-28-1305 RELATING TO THE LICENSED OCCASIONAL IMPORTER; TO ADD SECTION 12-59-85 SO AS TO PROVIDE THAT A FORFEITED LAND COMMISSION MAY REFUSE TO ACCEPT TITLE TO PROPERTY BID ON BY THE COUNTY AUDITOR; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY EXEMPTED FROM TAXATION IN THIS STATE, SO AS TO EXEMPT A MOBILE HOME WORTH LESS THAN TWO THOUSAND FIVE HUNDRED DOLLARS; TO AMEND SECTION 12-37-714, AS AMENDED, RELATING TO PROPERTY TAXATION OF A BOAT FOR THE TIME PERIOD IN WHICH IT IS LOCATED IN THIS STATE, SO AS TO REVISE THE TIME PERIODS; TO AMEND SECTION 12-37-2725, AS AMENDED, RELATING TO REGISTRATION OF A LICENSED VEHICLE IN ANOTHER STATE, SO AS TO PROVIDE FOR A RECEIPT FORM TO SUBSTITUTE FOR RETURN OF THE LICENSE PLATE AND REGISTRATION CERTIFICATE TO THIS STATE; TO AMEND SECTION 12-39-220, RELATING TO ASSESSMENT OF REAL ESTATE OMITTED FROM A DUPLICATE OR RETURN, SO AS TO INCLUDE PERSONAL PROPERTY; TO AMEND SECTION 12-51-50, AS AMENDED, RELATING TO SALE OF PROPERTY AT A TAX SALE, SO AS TO PROVIDE THAT THE SALE OCCUR ON AN ADVERTISED DATE AND TO DELETE THE REQUIREMENT OF REGULAR HOURS; TO AMEND SECTION 12-51-70, RELATING TO A DEFAULTING BIDDER IN A TAX SALE, SO AS TO INCREASE HIS LIABILITY FROM THREE HUNDRED TO ONE THOUSAND DOLLARS; TO AMEND SECTION 12-54-85, AS AMENDED, RELATING TO COLLECTION AND ENFORCEMENT OF TAXES, SO AS TO PROVIDE FOR A TIME LIMITATION FOR ASSESSMENT OF TAXES OR FEES FOR PROPERTY OMITTED FROM A DUPLICATE OR RETURN; TO AMEND SECTION 61-6-20, AS AMENDED, RELATING TO DEFINITIONS FOR PURPOSES OF THE ALCOHOLIC BEVERAGE CONTROL ACT, SO AS TO SPECIFICALLY DESCRIBE ACTIVITIES THAT CONSTITUTE "BONA FIDE ENGAGED PRIMARILY AND SUBSTANTIALLY IN THE PREPARATION AND SERVING OF MEALS"; TO AMEND SECTION 61-6-1610, AS AMENDED, RELATING TO A LICENSED PREMISES "BONA FIDE ENGAGED PRIMARILY AND SUBSTANTIALLY IN THE PREPARATION AND SERVING OF MEALS", SO AS TO ADD DEFINITIONS AND TO PROVIDE FOR DISPLAY OF THE LICENSE; TO AMEND SECTION 61-6-2010, AS AMENDED, RELATING TO A FIFTY-TWO WEEK TEMPORARY PERMIT, SO AS TO PROVIDE FOR A PRORATED REFUND UNDER CERTAIN CIRCUMSTANCES; TO AMEND SECTION 12-6-40, AS AMENDED, RELATING TO THE APPLICATION OF THE FEDERAL INTERNAL REVENUE CODE TO STATE TAX LAWS, SO AS TO INCLUDE THE IRC AS AMENDED THROUGH 2007; TO AMEND SECTION 12-6-1120, AS AMENDED, RELATING TO COMPUTATION OF SOUTH CAROLINA GROSS INCOME, SO AS TO EXCLUDE TIER III RAILROAD RETIREMENT BENEFITS; TO AMEND SECTION 12-28-955, RELATING TO RETAINING A PORTION OF THE USER FEE FOR ADMINISTRATIVE COSTS, SO AS TO DELETE THE RETENTION IN FAVOR OF REQUESTING A REFUND FROM THE DEPARTMENT OF REVENUE IN SPECIFIED AMOUNTS FOR EXPENSES OR ANNUAL ADMINISTRATIVE COSTS; TO AMEND SECTION 12-44-30, AS AMENDED, RELATING TO DEFINITIONS FOR PURPOSES OF THE FEE IN LIEU OF TAX SIMPLIFICATION ACT, SO AS TO MODIFY A CROSS REFERENCE IN THE DEFINITION OF "SPONSOR"; TO ADD SECTION 12-45-17 SO AS TO REQUIRE ANNUAL CONTINUING EDUCATION TRAINING FOR COUNTY TAX COLLECTORS; AND TO AMEND SECTION 12-54-70, AS AMENDED, RELATING TO EXTENSIONS OF TIME FOR THE FILING OF TAX RETURNS OR PAYMENT OF TAXES DUE, SO AS TO CONFORM THE EXTENSION TO THE CORRESPONDING FEDERAL EXTENDED TIME PERIOD.

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

SECTION    1.A.    Chapter 54 of Title 12 is amended by adding:

"Section 12-54-52.    Internal Revenue Code Section 6694 is adopted for all taxes in Title 12 and other taxes administered by the department except:

(1)    Subsection (c) is not adopted. Tax return preparers may use Chapter 60 to appeal penalties assessed pursuant to this section.

(2)    For purposes of subsection (a)(2)(C)(i), Internal Revenue Code Section 6662(d)(2)(B)(ii) is adopted.

(3)    Subsection (f), the definition of 'income tax preparer', is adopted but is not limited to income taxes and includes a return preparer for any taxes in Title 12 and any other taxes administered by the department.

Section 12-54-53.    Internal Revenue Code Section 6695 subsection (a) regarding failure to furnish a copy of a return to the taxpayer, subsection (b) regarding failure to sign return, and subsection (f) regarding negotiation of checks are adopted for all taxes in Title 12 and other taxes administered by the department. For purposes of subsection (b), the penalty applies if the department requests identification of the return preparer on the return."

B.        Section 12-6-50(16) of the 1976 Code, as last amended by Act 161 of 2005, is further amended to read:

"(16)    Sections 2001 through 7655, 7801 through 7871, and 8001 through 9602, except for Sections 6015 and, 6701, 6107(a), 6694 which is adopted as provided in Section 12-54-52, 6695 which is adopted as provided in Section 12-54-53, and except for Sections 6654 and 6655 which are adopted as provided in Section 12-6-3910 and Section 12-54-55."

C.        This section takes effect upon approval by the Governor and applies to tax periods beginning after 2008.

SECTION    2.A.    Section 4-9-195(B)(5) and (6) of the 1976 Code, as last amended by Act 292 of 2004, is further amended to read:

"(5)    'Preliminary certification' means a property has met the following conditions:

(a)    the owner of the property applies for and is granted historic designation by the county governing body, certification pursuant to subsection (C)(1), or both; and

(b)    the proposed rehabilitation receives approval of rehabilitation work from the reviewing authority, unless the property is certified solely pursuant to subsection (C)(1).

A county governing body may require that an owner applies for preliminary certification before any project work begins.

(6)    'Final certification' means a property has met the following conditions:

(a)    the owner of the property applies for and is granted historic designation, certification pursuant to subsection (C)(1), or both by the county governing body;

(b)    the completed rehabilitation receives approval of rehabilitation work from the reviewing authority, unless the property is certified solely pursuant to subsection (C)(1); and

(c)    the minimum expenditures for rehabilitation were incurred and paid."

B.        Section 4-9-195(C) of the 1976 Code, as last amended by Act 292 of 2004, is further amended to read:

"(C)    'Low and moderate income rental property' is eligible for certification if:

(1)    the property provides accommodations under the Section 8 Program as defined in the United States Housing Act of 1937 and amended by the Housing and Community Act of 1974 for low and moderate income families and persons as defined by Section 31-13-170(p); or

(2)    in the case of income-producing real property, the expenditures for rehabilitation exceed the appraised value of the property; and

(3)    if the low and moderate income housing rehabilitation is located in an area designated by the local government as a Low and Moderate Housing Rehabilitation District; and

(1)    'Low and moderate income rental property' is eligible for certification if:

(a)    the property is located in an area designated by the local government as a Low and Moderate Housing Rehabilitation District and provides accommodations under the Section 8 Program as defined in the United States Housing Act of 1937 and amended by the Housing and Community Act of 1974 for low and moderate income families and persons as defined by Section 31-13-170(p); or

(b)    the property is income-producing real property located in an area designated by the local government as a Low and Moderate Housing Rehabilitation District, and the expenditures for low and moderate income housing rehabilitation exceed the appraised value of the property.

(4)(2)    the owner or estate of any property certified as 'low and moderate income rental property' takes no actions which cause the property to be unsuitable for such a designation. The county governing body granting the initial certification has the authority to decertify any property in these cases, and the property becomes immediately ineligible for the special tax assessments provided for this type of property; and if action is taken by the owner or his estate which causes the property to be unsuitable for designation as low and moderate income rental property.

(5)(3)    Low and moderate income rental property that meets the requirement of subsection (C)(1) may be certified even if it does not qualify for 'historic designation' as defined in subsection (B)(1). However, if the property qualifies as "historic" for 'historic designation' as defined in subsection (B)(1), then the rehabilitation work must be approved by the appropriate reviewing authority as provided in subsections (B) and (D)."

SECTION    3.    Section 11-35-5230(B) of the 1976 Code, as last amended by Act 376 of 2006, is further amended to read:

"(B)(1)    Firms with state contracts that subcontract A taxpayer having a contract with this State who subcontracts with minority firms shall be a socially and economically disadvantaged small business is eligible for an income tax credit equal to four percent of the payments to minority subcontractors that subcontractor for work pursuant to a that state contract. Such subcontractors must be if the subcontractor is certified as to the criteria of a minority firm socially and economically disadvantaged small business as defined in Section 11-35-5010 of this code and any regulations which may be promulgated thereunder pursuant to it.

(2)    The tax credit is limited to a maximum of fifty thousand dollars annually. A firm taxpayer is eligible to claim a tax credit for a period of ten years from the date the first income tax credit is claimed beginning with the taxable year in which the first payment is made to the certified subcontractor.

(3)    Any firm A business desiring to be certified as a minority firm socially and economically disadvantaged small business shall make application apply to the Small and Minority Business Assistance Office (SMBAO) as defined by Section 11-35-5270, on such forms as may be prescribed by that office.

(4)    Firms A taxpayer claiming the income tax credit shall maintain evidence of work performed for a state contract by minority subcontractors the subcontractor and shall present such evidence on a form and in a manner prescribed by the Department of Revenue at the time of filing its state income tax return and shall claim such the credit at the time of filing. All records shall must be available for audit by the Department of Revenue in accordance with prevailing tax statutes."

SECTION    4.    Section 11-45-55(I)(3) of the 1976 Code, as added by Act 116 of 2007, is amended to read:

"(3)    Notwithstanding Section 12-54-240(A), the authority, the Department of Commerce, the Department of Revenue, and the Department of Insurance, and their employees and agents, may exchange information for the purpose of registering and verifying the existence, possession, transfer, and use of tax credits pursuant to this chapter."

SECTION    5.    Section 12-2-20 of the 1976 Code, as last amended by Act 116 of 2007, is further amended to read:

"Section 12-2-20.    As used in this title and in other titles that provide for taxes administered by the department, and unless otherwise required by the context, the term:

(1)    'person' includes any individual, trust, estate, partnership, receiver, association, company, limited liability company, corporation, or other entity, or group, or combination acting as a unit; and

(2)    'individual' means a human being."

SECTION    6.A.    Section 12-6-590 of the 1976 Code, as last amended by Act 116 of 2007, is further amended by adding at the end:

"(C)    If Internal Revenue Code Section 1374 (Tax Imposed on Certain Built-In Gains and Capital Gains) or 1375 (Tax Imposed on Certain Passive Investment Income) imposes a federal income tax, a South Carolina tax is similarly imposed using the rates set forth in Section 12-6-530. If the exception in Internal Revenue Code Section 1374(c) is effective for federal tax purposes, then this exception is applicable for South Carolina income tax purposes."

B.        This section takes effect upon approval by the Governor and applies to tax years after 2006.

SECTION    7.A.    Section 12-6-2250(B) of the 1976 Code, as last amended by Act 116 of 2007, is further amended to read:

"(B)    For taxable years beginning in 2007 through 2010 only, a taxpayer in subsection (A) shall apportion income by using the method provided in Section 12-6-2250(A) and, if applicable, the method provided in Section 12-6-2252. If the calculation permitted in Section 12-6-2252 results in a reduction in income allocated apportioned to this State, the reduction is allowed as follows:

Taxable year beginning in:            Percentage of reduction allowed:

2007                                        20

2008                                        40

2009                                        60

2010                                        80."

B.        This section takes effect upon approval by the Governor and applies for tax years beginning after 2006.

SECTION    8.A.    Section 12-6-3360(A) of the 1976 Code, as last amended by Act 116 of 2007, is further amended to read:

"(A)    Taxpayers that operate manufacturing, tourism, processing, warehousing, distribution, research and development, corporate office, qualifying service-related facilities, extraordinary retail establishment, qualifying technology intensive facilities, and banks as defined pursuant to this title are allowed an annual jobs tax credit as provided in this section. In addition, taxpayers that operate retail facilities and service-related industries qualify for an annual jobs tax credit in counties designated as least developed or distressed, and in counties that are under developed and not traversed by an interstate highway. As used in this section, 'corporate office' includes general contractors licensed by the South Carolina Department of Labor, Licensing and Regulation. Credits pursuant to this section may be claimed against income taxes imposed by Section 12-6-510 or 12-6-530, bank taxes imposed pursuant to Chapter 11 of this title, and insurance premium taxes imposed pursuant to Chapter 7 of Title 38, and are limited in use to fifty percent of the taxpayer's South Carolina income tax, bank tax, or insurance premium tax liability. In computing a tax payable by a taxpayer pursuant to Section 38-7-90, the credit allowable pursuant to this section must be treated as a premium tax paid pursuant to Section 38-7-20."

B.        This section takes effect upon approval by the Governor and applies to tax years beginning after December 31, 2005.

SECTION    9.A.    Section 12-6-3376 of the 1976 Code, as added by Act 83 of 2007, is amended to read:

"Section 12-6-3376.    (A)    For taxable years beginning after 2007, and before 2011, a taxpayer is allowed a tax credit against the income tax imposed pursuant to this chapter for the in-state purchase or lease of a plug-in hybrid vehicle. The purchase or lease must be the first purchase or lease of the vehicle to qualify for the credit allowed by this section.

(B)    A plug-in hybrid vehicle is a vehicle that shares the same benefits as an internal combustion and electric engine with an all-electric range of no less than nine miles. The credit is equal to two thousand dollars. The credit allowed by this section is nonrefundable and if the amount of the credit exceeds the taxpayer's liability for the applicable taxable year, any unused credit may be carried forward for five years.

(C)    The State Energy Office may promulgate regulations addressing qualifying vehicles, qualifying leases of those vehicles, and the application process for claiming credits pursuant to this section.

(B)(D)    Notwithstanding the credit amount allowed pursuant to this section, for a fiscal calendar year all claims made pursuant to this section must not exceed two hundred thousand dollars and must apply proportionately to all eligible claimants. To obtain the amount of capped credit available to a taxpayer, each taxpayer must submit a request for credit to the State Energy Office on a form prescribed by the State Energy Office. The form must be submitted by January thirty-first for vehicles purchased in the previous calendar year and the State Energy Office must notify the taxpayer of the amount of credit allocated to that taxpayer by March first of that year. A taxpayer may claim the capped credit for its taxable year which contains the December thirty-first of the previous calendar year. The department may require a copy of the form issued by the State Energy Office be attached to the return or otherwise provided."

B.        For the state's fiscal year beginning July 1, 2008, the capped credit is to be determined based on an eighteen-month period beginning July 1, 2008, through December 31, 2009. Applications must be made by January 31, 2010, for the previous eighteen-month period commencing July 1, 2008, and ending December 31, 2009. A taxpayer allocated a credit for this eighteen-month period may claim the credit for its tax year that contains December 31, 2009.

C.        To the extent the caps on the credit contained in this section are repealed in legislation enacted before or after this section, the elimination of those caps must be seen as the last expression of the legislature and to the extent any language in this section conflicts with that repeal, it must be considered null and void.

SECTION    10.    Section 12-6-3377 of the 1976 code, as added by Act 312 of 2006, is amended to read:

"Section 12-6-3377.    (A)    A South Carolina resident taxpayer who is eligible for and claims the new qualified fuel cell motor vehicle credit, the new advanced lean burn technology motor vehicle credit, the new qualified hybrid motor vehicle credit based on the combined city/highway metric or standard set by federal Internal Revenue Code Section 30B, and the new qualified alternative fuel motor vehicle credit allowed pursuant to Internal Revenue Code Section 30B is allowed a credit against the income taxes imposed pursuant to this chapter in an amount equal to twenty percent of that the federal income tax credit, without consideration of limitations on the amount of the federal credit allowable that result from the federal alternative minimum tax. For credits associated with business use of the vehicle, the credit must be calculated without consideration of reductions in the credit that result from being part of the general business credit in Internal Revenue Code Section 38. The credit allowed by this section is nonrefundable and if the amount of the credit exceeds the taxpayer's liability for the applicable taxable year, any unused credit may be carried forward and claimed in the five succeeding taxable years.

(B)    The credit amount allowed by this section must be calculated without regard to the phaseout period limits of Internal Revenue Code Section 30B(f) and for purposes of the credits allowed pursuant to this section, the provisions of Internal Revenue Code Section 30B are deemed permanent law."

SECTION    11.A.    Section 12-6-3535(A) of the 1976 Code, as last amended by Act 116 of 2007, is further amended to read:

"(A)    A taxpayer who is allowed a federal income tax credit pursuant to Section 47 of the Internal Revenue Code for making qualified rehabilitation expenditures for a certified historic structure located in this State is allowed to claim a credit against income taxes and corporate license fees imposed by Chapter 20 of this title. For the purposes of this section, 'qualified rehabilitation expenditures' and 'certified historic structure' are defined as provided in the Internal Revenue Code Section 47 and the applicable treasury regulations. The amount of the credit is ten percent of the expenditures that qualify for the federal credit. To claim the credit allowed by this subsection, a taxpayer filing a paper return must attach a copy of the section of the federal income tax return showing the credit claimed, along with other information that the Department of Revenue determines is necessary for the calculation of the credit provided by this subsection."

B.        This section takes effect upon approval by the Governor and applies to tax years beginning after 2007.

SECTION    12.A.    Section 12-6-3585(C) of the 1976 Code, as last amended by Act 116 of 2007, and (E) as added by Act 319 of 2006, is amended to read:

"(C)    The use of the credit is limited to the taxpayer's applicable income, bank, or premium tax or license fee liability for the tax year of the taxpayer after the application of all other credits. An unused credit may be carried forward ten tax years of the taxpayer after the end of the tax year of the taxpayer during which the qualified contribution was made.

(E)    'Taxpayer' means an individual, corporation, partnership, trust, bank, insurance company, or other entity having a state income, bank, or insurance premium tax or license fee liability who has made a qualified contribution."

B.        This section takes effect upon approval by the Governor and is effective for tax years beginning after December 31, 2005.

SECTION    13.A.    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 for heating water, space heating, air cooling, or the generation of electricity in or on a facility for a building, or buildings on a single site, in South Carolina and owned by the taxpayer. The tax credit allowed by this section must not be is claimed before the completion of in the tax year in which the installation of the solar energy system is completed. The amount of the credit in any year may not exceed three thousand five hundred dollars for each facility building or site in a single tax year 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 An unused credit may be carried forward for 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. No credit shall 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 a building.

(C)    A credit is not allowed for a solar energy system unless the credit is certified by the State Energy Office. A taxpayer must submit information indicating that the solar energy system meets all applicable requirements to the State Energy Office by the last day of the first month after the end of the taxpayer's taxable year in which the installation is completed. The State Energy Office must provide the taxpayer with certification that the credit may be claimed. The department may require a copy of the certification form issued by the State Energy Office be attached to the return or otherwise provided.

(D)    The State Energy Office may promulgate regulations addressing requirements for solar energy systems to qualify for credits allowed by this section."

B.        This section takes effect upon approval by the Governor and applies to taxable years beginning after December 31, 2007.

SECTION    14.    Section 12-6-3630 of the 1976 Code, as added by Act 83 of 2007, is amended to read:

"Section 12-6-3630.    (A)    For taxable years beginning after 2007, and before 2012, a taxpayer is allowed a credit against the income tax imposed pursuant to Chapter 6 or of this title, bank tax imposed pursuant to Chapter 11 of this title, license fees imposed pursuant to Chapter 20 of this title, or insurance premium tax imposed pursuant to Chapter 7, Title 38, or a combination of them, for a qualified contribution made by a taxpayer to the South Carolina Hydrogen Infrastructure Development Fund established pursuant to Chapter 46, Title 11. A contribution is not a qualified contribution if it is subject to a condition or limitation regarding the use of the contribution.

(B)    The credit is equal to twenty-five percent of a qualified contribution made by a taxpayer to the fund. The credit must be claimed in the year in which the qualified contribution is made. The credit must be used against the taxpayer's liability on income taxes tax, bank tax, premium insurance taxes tax, or license fees fee liability after the application of all other credits applicable to the taxpayer's tax liability. Unused credits may be carried forward for ten years after the tax year in which a qualified contribution was made. The credit is nonrefundable.

(C)    A taxpayer who claims a credit for a qualified contribution pursuant to this section may not claim a deduction for the same qualified contribution.

(D)    A taxpayer who claims a credit pursuant to this section must attach to his tax return a copy of a form provided by the authority identifying the taxpayer's qualified contribution. The department may require that a copy of the form identifying the taxpayer's qualified contribution be attached to the taxpayer's return or otherwise provided. The Department of Revenue department may require from the taxpayer additional information identifying the taxpayer's qualified contribution as it considers appropriate."

SECTION    15.    Section 12-6-5060(A) of the 1976 Code, as last amended by Act 382 of 2006, is further amended to read:

"(A)    Each taxpayer required to file a state individual income tax return may contribute to the War Between the States Heritage Trust Fund established pursuant to Section 51-18-115 , the Nongame Wildlife and Natural Areas Program Fund established pursuant to Section 50-1-280, the Children's Trust Fund of South Carolina established pursuant to Section 20-7-5010, the Eldercare Trust Fund of South Carolina established pursuant to Section 43-21-160 , or the First Steps to School Readiness Fund established pursuant to Section 20-7-9740, the South Carolina Military Family Relief Fund established pursuant to Article 3, Chapter 11 of Title 25, the Gift of Donate Life Trust Fund of South Carolina established pursuant to Section 44-43-1310, the Veterans' Trust Fund of South Carolina established pursuant to Chapter 21 of Title 25, the South Carolina Litter Control Enforcement Program (SCLCEP) and used by the Governor's Task Force on Litter only for the SCLCEP Program, the South Carolina Law Enforcement Assistance Program (SCLEAP) and used as provided in Section 23-3-65, the South Carolina Department of Parks, Recreation and Tourism for use in the South Carolina State Park Service in the manner the General Assembly provides, K-12 public education for use in the manner the General Assembly provides by law, South Carolina Conservation Bank Trust Fund established pursuant to Section 48-59-60, or the Financial Literacy Trust Fund as established pursuant to Section 59-29-510, by designating the contribution on the return. The contribution may be made by reducing the income tax refund or by remitting additional payment by the amount designated."

SECTION    16.A.    Section 12-8-1530 of the 1976 Code is amended by adding at the end:

"(C)    The department may allow a taxpayer to withhold and report taxes annually on income from activities described in Section 12-8-520(D)(1) through (11)."

B.        This section takes effect upon approval by the Governor and applies to tax years beginning after December 31, 2007.

SECTION    17.A.    Section 12-10-80(A)(6) of the 1976 Code is amended to read:

"(6)    To the extent any A return of an overpayment of withholding that results from claiming job development credits is not used as permitted by subsection (C) or by Section 12-10-95, it in a quarter when the taxpayer is not in compliance with Chapter 10 of Title 12 or the revitalization agreement must be treated as misappropriated employee withholding."

B.        This section takes effect upon approval by the Governor and applies to tax years beginning after 2008.

SECTION    18.    Section 12-20-100(A)(1) of the 1976 Code is amended to read:

"(1)    one dollar for each thousand dollars, or fraction of a thousand dollars, of fair market value of property owned and used within this State in the conduct of business as determined by the department for property tax purposes for the preceding taxable year; and"

SECTION    19.A.    Section 12-20-105 of the 1976 Code, as last amended by Act 116 of 2007, is further amended to read:

"Section 12-20-105.    (A)    Any company subject to a license tax under Section 12-20-100 may claim a credit against its license tax liability for amounts paid in cash to provide infrastructure for an eligible project.

(B)(1)    To be considered an eligible project for purposes of this section, the project must qualify for income tax credits under Chapter 6, Title 12, withholding tax credit under Chapter 10, Title 12, income tax credits under Chapter 14, Title 12, or fees in lieu of property taxes under either Chapter 12, Title 4, Chapter 29, Title 4, or Chapter 44, Title 12.

(2)    If a project consists of an office, business, commercial, or industrial park which is owned or constructed by a county or political subdivision of this State when the qualifying improvements are paid for, the project does not have to meet the qualifications of item (1) to be considered an eligible project.

(C)(1)    If, at the time a company subject to the license tax pursuant to Code Section 12-20-100 contributes cash to a county or political subdivision for a project, the project meets the qualifications of (B), the company continues to be eligible for the credit described in (A) even if the county or political subdivision sells, transfers, or otherwise disposes of the project, or the project ultimately is not completed, if within one year of the sale, transfer, or disposal of the original project or the determination that the original project is not to be completed, the county or political subdivision invests cash equal to the amount attributable to the original project in another project that meets the requirement of (B).

(2)    The county or political subdivision must notify the company that made the contribution that the original project is no longer a qualifying project and it must provide the company with information about the new project and its eligibility as a qualifying project pursuant to (B) within three months of the reinvestment in the new project. The company must retain that information in its files for a period of ten years from the date it received the notification.

(C)(D)    For the purpose of this section, 'infrastructure' means improvements for water, sewer, gas, steam, electric energy, and communication services made to a building or land that are considered necessary, suitable, or useful to an eligible project. These improvements include, but are not limited to:

(1)    improvements to both public or private water and sewer systems;

(2)    improvements to both public or private electric, natural gas, and telecommunications systems including, but not limited to, ones owned or leased by an electric cooperative, electric utility, or electric supplier, as defined in Chapter 27, Title 58;

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

(4)    for a qualifying project under subsection (B)(2), infrastructure improvements include industrial shell buildings and the purchase of land for an office, business, commercial, or industrial park which is owned or constructed by a county or political subdivision of this State. Nothing in this section shall prohibit the county or political subdivision from selling the industrial shell building or industrial park after the company has paid in cash to provide the infrastructure for an eligible project.

(D)(E)    A company is not allowed the credit provided by this section for actual expenses it incurs in the construction and operation of any building or infrastructure it owns, leases, manages, or operates.

(E)(F)    The maximum aggregate credit that may be claimed in any tax year by a single company is three hundred thousand dollars.

(F)(G)    The credits allowed by this section may not reduce the license tax liability of the company below zero. If the applicable credit originally earned during a taxable year exceeds the liability and is otherwise allowable under subsection (D), the amount of the excess may be carried forward to the next taxable year.

(G)(H)    For South Carolina income tax and license purposes, a company that claims the credit allowed by this section is ineligible to claim the credit allowed by Section 12-6-3420."

B.        This section takes effect upon approval by the Governor and applies for tax years beginning after 2003.

SECTION    20.    Section 12-36-910(B)(6), as added by Act 161 of 2005, and (7), as added by Act 386 of 2006, are amended to read:

"(6)    gross proceeds accruing or proceeding from the sale or renewal of warranty, maintenance, or similar service contracts for tangible property, whether or not such contracts are purchased in conjunction with the sale of tangible personal property.

(7)    gross proceeds accruing or proceeding from the sale or renewal of warranty, maintenance, or similar service contracts for tangible personal property, whether or not the contracts are purchased in conjunction with the sale of tangible personal property."

SECTION    21.    Section 12-36-2120(67) of the 1976 Code, as last amended by Act 116 of 2007, is amended to read:

"(67)    effective July 1, 2011, construction materials used in the construction of a new or expanded single manufacturing and or distribution facility, or one that serves both purposes, with a capital investment of at least one hundred million in real and personal property at a single site in the State over an eighteen-month period. The taxpayer must provide notice of the exemption, and the Department of Revenue may assess taxes owing in the manner provided in Section 12-36-2120(51). To qualify for this exemption, the taxpayer shall notify the department before the first month it uses the exemption and shall make the required investment over the eighteen-month period beginning on the date provided by the taxpayer to the department in its notices. The taxpayer shall notify the department in writing that it has met the investment requirement or, after the expiration of the eighteen-month period, that it has not met the investment requirement. The department may assess any tax due on construction materials purchased tax-free pursuant to this item but due the State as a result of the taxpayer's failure to meet the investment requirement. The running of the periods of limitations for assessment of taxes provided in Section 12-54-85 is suspended for the time period beginning with notice to the department before the taxpayer uses the exemption and ending with notice to the department that the taxpayer either has met or has not met the investment requirement."

SECTION    22.A.    Section 12-36-2120(70) of the 1976 Code, as added by Act 34 of 2007, is amended to read:

"(70)(a)    gold, silver, or platinum bullion, or any combination of this bullion;

(b)    coins that are or have been legal tender in the United States or other jurisdiction; and

(c)    currency that is or has been legal tender in the United States or another jurisdiction.

The department shall prescribe documentation that must be maintained by retailers claiming the exemption allowed by this item. This Sufficient documentation must be sufficient maintained by the retailer to identify each individual sale for which the exemption is claimed."

B.        This section takes effect July 1, 2007.

SECTION    23.A.    Section 12-36-2120(74) of the 1976 Code, as added by Act 99 of 2007, is amended to read:

"(74)    durable medical equipment and related supplies:

(a) as defined under federal and state Medicaid and Medicare laws; and

(b) which is paid directly by funds of this State or the United States under the Medicaid or Medicare programs, where state or federal law or regulation authorizing the payment prohibits the payment of the sale sales or use tax; and

(c) sold by a provider who holds a South Carolina retail sales license and whose principal place of business is located in this State."

B.        This section takes effect July 1, 2007, in accordance with the provisions of SECTION 1B and 1C of Act 99 of 2007.

SECTION    24.    Section 12-37-90(h) of the 1976 Code is amended to read:

"(h)    be the sole person responsible for the valuation of real property, except that required by law to be appraised and assessed by the department, and the values set by the assessor may be altered only by the assessor or by legally constituted appellate boards, the department, or the courts;"

SECTION    25.    Section 12-37-220(B)(23) of the 1976 Code is amended to read:

"(23)    Notwithstanding any other another provision of law, property heretofore exempt before from ad valorem taxation by reason of the imposition upon such the property or the owner of such the property of a tax other than an ad valorem tax pursuant to the provisions of Section 12-11-30, Section 12-13-50 or Section 12-21-1080 shall continue 1085 continues to be entitled to such the exemption."

SECTION    26.    Section 12-37-220(B)(32)(2)(a) of the 1976 Code is amended to read:

"(a)    'full-time' means a job requiring a minimum of thirty-five hours of an employee's time a week for the entire normal year of company operations or a job requiring a minimum of thirty-five hours of an employee's time for a week for a year in which the employee was initially hired for or transferred to the South Carolina corporate headquarters, corporate office facility, or distribution facility and or worked at a rented facility pending construction of a corporate headquarters, corporate office facility, or distribution facility;"

SECTION    27.    Section 12-44-30(18) of the 1976 Code, as last amended by Act 283 of 2000, is further amended to read:

"(18)    'Sponsor' means one or more entities which sign the fee agreement with the county and makes the minimum investment, subject to the provisions of Section 12-44-40, each of which makes the minimum investment as provided in Section 12-44-30(13) (14) and also includes a sponsor affiliate unless the context clearly indicates otherwise. If a project consists of a manufacturing, research and development, corporate office, or distribution facility, as those terms are defined in Section 12-6-3360(M), each sponsor or sponsor affiliate is not required to invest the minimum investment if the total investment at the project exceeds ten million dollars."

SECTION    28.    Section 12-54-85(C) of the 1976 Code, as last amended by Act 116 of 2007, is further amended to read:

"(C)    Taxes may be determined and assessed after the thirty-six month limitation if:

(1)    there is fraudulent intent to evade the taxes;

(2)    the taxpayer failed to file a return or document as required by law;

(3)    there is a twenty percent understatement of the total of all taxes required to be shown on the return or document. The taxes in this case may be assessed at any time within seventy-two months from the date the return or document was filed or due to be filed, whichever is later. For the purpose of this item, the total of all taxes required to be shown on the return is the total of all taxes required to be shown on the return before any reduction for estimated payments, withholding payments, other prepayments, or discount allowed for timely filing of the return and payment of the tax due, but that amount must be reduced by another credit other credits that may be claimed on the return;

(4)    the person liable for any taxes consents in writing, before the expiration of the time prescribed in this section for assessing taxes due, to the assessment of the taxes after the time prescribed by this section; or

(5)    the tax is a use tax imposed under Chapter 36 of this title, or a local use tax administered and collected by the department on behalf of a local jurisdiction, and the assessment of the use tax is the result of information received from, or as a result of exchange agreements with, other state or local taxing authorities, regional or national tax administration organizations, or the federal government. The use taxes in this case may be assessed at any time within twelve months after the department receives the information, but no later than seventy-two months after the last day the use tax may be paid without penalty; or

(6)    the taxpayer lacked a valid business purpose as defined in Chapter 2 of this title for one or more items on the return. The taxes in this case may be assessed at any time within seventy-two months from the date the return or document was filed, or due to be filed, whichever is later."

SECTION    29.    Section 12-54-240(A) of the 1976 Code is amended to read:

"(A)    Except in accordance with proper judicial order or as otherwise provided by law, it is unlawful for a person wilfully to divulge or make known in any manner any particulars set forth or disclosed in any a report or return required under pursuant to Chapters 6, 8, 11, 13, 16, 20, or 36 or Article 17 of Chapter 21 of this title. A person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not more than one thousand dollars or by imprisonment for not more than one year, or both. If the offender is an officer or an employee of the State, he must be dismissed from office and is disqualified from holding any public office in this State for a period of five years thereafter after that. If the offender is an officer or employee of a company retained by the State on an independent contract basis under pursuant to subsection (B)(3) of this section or Section 12-4-350, and the contractor fails to terminate the officer or employee, the contract is immediately terminated immediately and the company contractor is not eligible to contract with the State for this purpose for a period of five years thereafter after that."

SECTION    30.    Section 12-54-240(B)(28) of the 1976 Code, as added by Act 116 of 2007, is amended to read:

"(28)    exchange of information between the department, the Department of Commerce and its agency, the Venture Capital Authority, and the Department of Insurance, and their employees and agents, for the purpose of registering and verifying the existence, possession, transfer, and use of tax credits pursuant to Chapter 45 of Title 11."

SECTION    31.    Section 12-54-250(A) and (B) of the 1976 Code, as last amended by Act 116 of 2007, (C)-(E), and (F), as last amended by Act 161 of 2005, is further amended to read:

"(A)(1)    The South Carolina Department of Revenue may require, consistent with the cash management policies of the State Treasurer, that a A person owing fifteen thousand dollars or more in connection with any return, report, or other document to be filed with the department or a withholding agent making at least twenty-four payments in a year pursuant to Section 12-8-1520(D) is required to pay the tax liability to the State no later than the date the payment is required by law to be made, in funds that are available immediately to the State. 'Payment in immediately available funds' means payment by cash to the main office of the department before five o'clock p.m. or by electronic means established by the department, with the approval of the State Treasurer, which ensures the settlement of those funds in the state's account on or before the two banking day days following the due date of the tax as provided by law. The department may exempt specified payments from this requirement by tax type or if the department determines that the costs of implementation exceed the benefit provided to the State.

(2)    Initiation of the transfer of funds must occur on or before the due date of the tax. If payment is made by means other than cash and (i) if initiation of the transfer is after the due date or (ii) settlement to the state's account does not occur on or before the two banking day days following the due date of the tax, payment is deemed to occur on the date settlement occurs. To ensure settlement to the state's account is timely, taxpayers must follow instructions provided by the department.

(3)    A taxpayer may request a temporary exemption from the requirements of item (2) from the department if the taxpayer is unable to comply with the law due to a temporary hardship.

(3)(4)    Failure to make timely payment in immediately available funds or failure to provide evidence of payment in a timely manner subjects the taxpayer to penalties and interest as provided by law for delinquent or deficient tax payments.

(B)    The department may provide alternative periodic filing and payment dates later than the dates otherwise provided by law for taxes collected by the department in those instances considered to be in the best interests of the State. An alternative date must not be later than the last day of the month in which the tax was otherwise due.

(C)    The department may prescribe rules and the State Treasurer banking procedures necessary for the administration of the provisions of this section.

(D)    The department may prescribe alternative means other than paper to file returns and reporting documents necessary for the administration of this section.

(E)    Payment by immediately available funds and filing of the return are considered simultaneous acts with respect to penalties and interest for failure to file and failure to pay. Penalties and interest must be calculated based on the later of the return postmark date or payment date. Unless exempted by the department for technological or hardship purposes, taxpayers making payments by immediately available funds must file the accompanying return by electronic means.

(D)    Taxpayers choosing voluntarily to pay by immediately available funds must comply with all requirements of this section.

(F)(E)(1)    A tax return preparer who prepares one hundred or more returns for a tax period for the same tax year shall submit all returns by electronic means where electronic means are available. Where electronic means are not available to file the return, but 2D barcode is available, the preparer must use 2D barcode. If a taxpayer checks a box on his return provides the preparer with a signed statement indicating a preference that his return is to be filed by another means, the preparer may submit that return by another means.

(2)    The department shall include a notice of this requirement in its form instructions and in the forms area of its website web site.

(3)    For the purposes of this subsection, tax return preparer means the business entity and not the individual location or individual completing the return.

(4)    If compliance with this section is a substantial financial hardship, a tax return preparer may apply in writing to the department to be exempted from these requirements. The department may grant an exemption for no more than one year at a time.

(5)    A person who fails to comply with the provisions of this section may be penalized in an amount to be assessed by the department equal to fifty dollars for each return."

SECTION    32.    Section 12-60-20 of the 1976 Code, as last amended by Act 110 of 2007, is further amended to read:

"Section 12-60-20.    It is the intent of the General Assembly to provide the people of this State with a straightforward procedure to determine a any dispute with the Department of Revenue and any dispute concerning property taxes. The South Carolina Revenue Procedures Act must be interpreted and construed in accordance with, and in furtherance of, that intent."

SECTION    33.    Section 12-60-510(A) of the 1976 Code, as last amended by Act 161 of 2005, is further amended to read:

"(A)    Before a taxpayer may seek a contested case hearing before the Administrative Law Court, he shall exhaust the prehearing remedy.

(1)    If a taxpayer requests a contested case hearing before the Administrative Law Court within ninety days of the date of the proposed assessment without exhausting his prehearing remedy because he failed to file a protest with the department, the administrative law judge shall dismiss the action without prejudice. If the taxpayer failed timely to provide the department with the facts, law, and other authority supporting his position, he shall provide them to the department. The administrative law judge shall then remand the case to the department for reconsideration in light of the new facts or issues unless the department elects to forego the remand.

(2)    If a taxpayer fails to file a protest with the department within ninety days of the date of the proposed assessment, the taxpayer is in default, and the department must issue an assessment for the taxes. The assessment may be removed by the Administrative Law Court for good cause shown, and the matter may be remanded to the department."

SECTION    34.A.    Section 12-63-20(A)(3) of the 1976 Code, as added by Act 83 of 2007, is amended to read:

"(3)    the rebates allowed pursuant to this subsection shall be phased in at twenty percent a year until the rebate equals three hundred dollars for subitems (a) through (d) of subsection (A)(1) and five hundred dollars for subitem (e) of subsection (A)(1). The amount of rebate that a person may claim is limited to the amount of rebate in effect for the year in which the vehicle or conversion equipment was purchased or converted, whichever is applicable."

B.        Section 12-63-20(B) of the 1976 Code, as added by Act 83 of 2007, is amended to read:

"(B)(1)    An incentive payment for an alternative fuel purchase is provided beginning after June 30, 2009, and ending before July 1, 2012, and shall be provided from the general fund, excluding revenue derived from the sales and use tax as follows:

(a)    five cents to the retailer for each gallon of E70 fuel or greater sold provided that the ethanol-based fuel is subject to the South Carolina motor fuel user fee;

(b)    twenty-five cents to the retailer for each gallon of pure biodiesel fuel sold so that the biodiesel in the blend is at least two percent B2 or greater, provided that the qualified biodiesel content fuel is subject to the South Carolina motor fuel user fee. Biodiesel fuel is a fuel for motor vehicle diesel engines comprised of vegetable oils or animal fats and meeting the specifications of the American Society of Testing and Materials (ASTM) D6751; and

(c)    twenty-five cents to the retailer or wholesaler for each gallon of pure biodiesel fuel sold as dyed diesel fuel for 'off-road' uses, so that the biodiesel in the blend is at least two percent B2 or greater.

(2)    The payments allowed pursuant to this subsection must be made to the retailer upon compliance with verification procedures set forth by the Department of Agriculture.

(3)    For purposes of this subsection, the definition of the term 'biodiesel' is the same as found in Section 12-28-110(70)."

SECTION    35.    Section 44-43-1360 of the 1976 Code, as last amended by Act 92 of 2007, is further amended to read:

"Section 44-43-1360.    The board may employ a director and other staff as necessary to carry out the provisions of this article; however, administration of this article may not exceed twenty percent of the total funds credited to the trust fund, excluding the administrative fee paid to the Department of Revenue pursuant to Sections 12-6-5065 5060 and 59-1-143."

SECTION    36.    Section 46-3-260(B) of the 1976 Code, as added by Act 116 of 2007, is amended to read:

"(B)    The Department of Revenue Agriculture may prescribe forms, procedures, issue policy documents, and distribute funds as necessary to ensure the orderly and timely implementation of the provisions herein. The Department of Revenue Agriculture shall coordinate with the Department of Agriculture State Energy Office as necessary."

SECTION    37.A.    Title 12 of the 1976 Code is amended by adding:

Section 12-64-10.    This chapter is known and may be cited as the 'South Carolina Textiles Communities Revitalization Act'.

(A)    The primary purpose of this chapter is to create an incentive for the rehabilitation, renovation, and redevelopment of abandoned textile mill sites located in South Carolina.

(B)    The abandonment of textile mills has resulted in the disruption of communities and increased the cost to local governments by requiring additional police and fire services due to excessive vacancies. Many abandoned textile mills pose safety concerns. A public and corporate purpose is served by restoring these textile mill sites to a productive asset for the communities and result in increased job opportunities.

(C)    There exists in many communities of this State abandoned textile mills. The stable economic and physical development of these textile mill sites is endangered by the presence of these abandoned textile mills as manifested by the progressive and advanced deterioration of these structures. As a result of the existence of these abandoned mills, there is an excessive and disproportionate expenditure of public funds, inadequate public and private investment, unmarketability of property, growth in delinquencies and crime in the areas, together with an abnormal exodus of families and businesses, so that the decline of these areas impairs the value of private investments, threatens the sound growth and the tax base of taxing districts in these areas, and threatens the health, safety, morals, and welfare of the public. To remove and alleviate these adverse conditions, it is necessary to encourage private investment and restore and enhance the tax base of the taxing districts in the areas by the redevelopment of these abandoned textile mill sites.

Section 12-64-30.    For the purposes of this chapter, unless the context requires otherwise:

(1)    'Abandoned' means that at least eighty percent of the textile mill has been closed continuously to business or otherwise nonoperational for a period of at least one year immediately preceding the date on which the taxpayer files a 'Notice of Intent to Rehabilitate'. For purposes of this item, an eligible site that otherwise qualifies as abandoned may be subdivided into separate parcels, which parcels may be owned by the same taxpayer or different taxpayers, and each parcel must be deemed to be an eligible site for purposes of determining whether the parcel is considered to be abandoned.

(2)    'Ancillary uses' means uses related to the textile manufacturing, dying, or finishing operations on a textile mill site consisting of sales, distribution, storage, water runoff, wastewater treatment and detention, pollution control, personnel offices, security offices, employee parking, dining and recreation areas, and internal roadways or driveways directly associated with such uses.

(3)    'Textile mill' means a facility or facilities that were last used for textile manufacturing, dying, or finishing operations and for ancillary uses to those operations.

(4)    'Textile mill site' means the textile mill together with the land and other improvements on it which were used directly for textile manufacturing operations or ancillary uses; except that with respect to a site acquired by a taxpayer after December 31, 2007, the area of the site is limited to the land located within the boundaries where the textile manufacturing, dying, or finishing facility structure is located and does not include land located outside the boundaries of the structure or devoted to ancillary uses.

(5)    'Local taxing entities' means a county, municipality, school district, special purpose district, and other entity or district with the power to levy ad valorem property taxes against the textile mill site.

(6)    'Local taxing entity ratio' means that percentage computed by dividing the millage rate of each local taxing entity by the total millage rate for the textile mill site.

(7)    'Placed in service' means the date upon which the textile mill site is completed and ready for its intended use. If the textile mill site is completed and ready for use in phases, each phase is considered to be placed in service when it is completed and ready for its intended use.

(8)    'Rehabilitation expenses' means the expenses incurred in the rehabilitation, renovation, or redevelopment of the textile mill site; except that, with respect to a site acquired by a taxpayer after December 31, 2007, 'rehabilitation expenses' means the expenses incurred in renovating or demolishing an abandoned textile mill, renovating or demolishing buildings on the textile mill site, and renovating applicable land including expenditures incurred for environmental or site cleanup, grading, and infrastructure on the land, but excluding the cost of acquiring the textile mill site or the cost of personal property located at the textile mill site. Renovation must meet the requirements of Internal Revenue Code Section 47(c)(1)(A)(iii) to be qualified. If a taxpayer chooses not to renovate the textile mill or a building on the site, but instead chooses to demolish the textile mill or another building on the textile mill site, expenses incurred for demolishing the mill or the building and costs incurred for environmental or site cleanup, grading the land, and the costs of infrastructure for the site qualify as rehabilitation expenses. Some construction costs associated with a textile mill site may be allowed as rehabilitation expenses. New construction costs are allowed only to the extent the costs are for construction located within the original dimensions of the abandoned textile mill itself and the construction is equal to or less than the square footage of the textile mill as of the time of abandonment. For expenses associated with a textile mill site to qualify for the credit, the textile mill and buildings on the textile mill site must be either renovated or demolished.

(9)    'Notice of Intent to Rehabilitate' means, with respect to a textile mill site acquired by a taxpayer after December 31, 2007, a letter submitted by the taxpayer to the department or the municipality or county as specified in this chapter, indicating the taxpayer's intent to rehabilitate the textile mill site, the location of the textile mill site, the amount of acreage involved in the textile mill site, and the estimated expenses to be incurred in connection with rehabilitation of the textile mill site. The notice also must set forth information as to which buildings the taxpayer intends to renovate, which buildings the taxpayer intends to demolish, and whether new construction is to be involved.

Section 12-64-40.    (A)    Subject to the terms and conditions of this chapter, a taxpayer who rehabilitates a textile mill site is eligible for either:

(1)    a credit against real property taxes levied by local taxing entities; or

(2)    a credit against income taxes imposed pursuant to Chapter 6 and Chapter 11, Title 12, or corporate license fees pursuant to Chapter 20, Title 12, or both.

(B)    If the taxpayer elects to receive the credit pursuant to subsection (A)(1), the following provisions apply:

(1)    The taxpayer shall file a Notice of Intent to Rehabilitate with the municipality, or the county if the textile mill site is located in an unincorporated area, in which the textile mill site is located before incurring its first rehabilitation expenses at the textile mill site. Failure to provide the Notice of Intent to Rehabilitate results in qualification of only those rehabilitation expenses incurred after notice is provided.

(2)    Once the Notice of Intent to Rehabilitate has been provided to the county or municipality, the municipality or the county shall first by resolution determine the eligibility of the textile mill site and the proposed rehabilitation expenses for the credit. A proposed rehabilitation of a textile mill site must be approved by a positive majority vote of the local governing body. For purposes of this subsection, 'positive majority vote' is as defined in Section 6-1-300(5). If the county or municipality determines that the textile mill site and the proposed rehabilitation expenses are eligible for the credit, there must be a public hearing and the municipality or county shall approve the textile mill site for the credit by ordinance. Before approving a textile mill site for the credit, the municipality or county shall make a finding that the credit does not violate a covenant, representation, or warranty in any of its tax increment financing transactions or an outstanding general obligation bond issued by the county or municipality.

(3)(a)    The amount of the credit is equal to twenty-five percent of the actual rehabilitation expenses made at the textile mill site times the local taxing entity ratio of each local taxing entity that has consented to the credit pursuant to item (4), if the actual rehabilitation expenses incurred in rehabilitating the textile mill site are between eighty percent and one hundred twenty-five percent of the estimated rehabilitation expenses set forth in the Notice of Intent to Rehabilitate. If the actual rehabilitation expenses exceed one hundred twenty-five percent of the estimated expenses set forth in the Notice of Intent to Rehabilitate, the taxpayer qualifies for the credit based on one hundred twenty-five percent of the estimated expenses as opposed to the actual expenses it incurred in rehabilitating the textile mill site. If the actual rehabilitation expenses are below eighty percent of the estimated rehabilitation expenses, the credit is not allowed. The ordinance must provide for the credit to be taken as a credit against up to seventy-five percent of the real property taxes due on the textile mill site each year for up to eight years.

(b)    The local taxing entity ratio is set as of the time the Notice of Intent to Rehabilitate is filed and remains set for the entire period that the credit may be claimed by the taxpayer.

(4)    Not fewer than forty-five days before holding the public hearing required by subsection (B)(2), the governing body of the municipality or county shall give notice to all affected local taxing entities in which the textile mill site is located of its intention to grant a credit against real property taxes for the textile mill site and the amount of estimated credit proposed to be granted based on the estimated rehabilitation expenses. If a local taxing entity does not file an objection to the tax credit with the municipality or county on or before the date of the public hearing, the local taxing entity is considered to have consented to the tax credit.

(5)    The credit against real property taxes may be claimed for the property tax year the rehabilitated textile mill site is first placed in service.

(C)    If the taxpayer has acquired the textile mill site after December 31, 2007, and elects to receive the credit pursuant to subsection (A)(2), the following provisions apply:

(1)    The taxpayer must file with the department a notice of Intent to Rehabilitate before incurring its first rehabilitation expenses at the textile mill site. Failure to provide the Notice of Intent to Rehabilitate results in qualification of only those rehabilitation expenses incurred after the notice is provided.

(2)    The amount of the credit is equal to twenty-five percent of the actual rehabilitation expenses made at the textile mill site if the actual rehabilitation expenses incurred in rehabilitating the textile mill site are between eighty percent and one hundred twenty-five percent of the estimated rehabilitation expenses set forth in the Notice of Intent to Rehabilitate. If the actual rehabilitation expenses exceed one hundred twenty-five percent of the estimated expenses set forth in the Notice of Intent to Rehabilitate, the taxpayer qualifies for the credit based on one hundred twenty-five percent of the estimated expenses as opposed to the actual expenses it incurred in rehabilitating the textile mill site. If the actual rehabilitation expenses are below eighty percent of the estimated rehabilitation expenses, the credit is not allowed.

(3)    The entire credit may not be taken for the taxable year in which the textile mill site is placed in service but must be taken in equal installments over a five-year period beginning with the tax year in which the rehabilitated textile mill site is placed in service. Unused credit may be carried forward for the succeeding five years.

(4)    If the taxpayer qualifies for both the credit allowed by this subsection and the credit allowed pursuant to Section 12-6-3535, the taxpayer may claim both credits.

(5)    The credit allowed by this subsection is limited in use to fifty percent of either:

(a)    the taxpayer's income tax liability for the taxable year if taxpayer claims the credit allowed by this section as a credit against income tax imposed pursuant to Chapter 6; or

(b)    the taxpayer's corporate license fees for the taxable year if the taxpayer claims the credit allowed by this section as a credit against license fees imposed pursuant to Chapter 20.

(6)(a)    If the taxpayer leases the textile mill site, or part of the textile mill site, the taxpayer may transfer any applicable remaining credit associated with the rehabilitation expenses incurred with respect to that part of the site to the lessee of the site. If a taxpayer sells the textile mill site, or part of the textile mill site, the taxpayer may transfer all, or part of the remaining credit, associated with the rehabilitation expenses incurred with respect to that part of the site to the purchaser of the applicable portion of the textile mill site.

(b)    To the extent that the taxpayer transfers the credit, the taxpayer must notify the department of the transfer in the manner the department prescribes.

(7)    To the extent that the taxpayer is a partnership or a limited liability company taxed as a partnership, the credit may be passed through to the partners or members and may be allocated among any of its partners or members including, without limitation, an allocation of the entire credit to one partner or member.

Section 12-64-50.    The provisions of Chapter 31 of this title also apply to this chapter; except that, the requirements of Section 6-31-40 do not apply."

B.    Chapter 32, Title 6 of the 1976 Code is repealed.

C.    With respect to a site acquired by a taxpayer after December 31, 2007, the area of the site is limited to the land located within the boundaries where the textile manufacturing facility structure is located and does not include land located outside the boundaries of the structure.

SECTION    38.A.    Title 12 of the 1976 Code is amended by adding:

Section 12-66-10.    This chapter is known and may be cited as the 'South Carolina Retail Facility Revitalization Act'.

(A)    The primary purpose of this chapter is to create an incentive for the renovation, improvement, and redevelopment of abandoned retail facility sites located in South Carolina.

(B)    The abandonment of retail facilities has resulted in the disruption of communities and increased the cost to local governments by requiring additional police and fire services due to excessive vacancies. Many abandoned retail facility sites pose safety concerns. A public and corporate purpose is served by restoring these retail facility sites to a productive asset for the communities and result in increased job opportunities.

(C)    There exists in many communities of this State abandoned retail facilities. The stable economic and physical development of these retail facility sites is endangered by the presence of these abandoned retail facilities as manifested by the progressive and advanced deterioration of these structures. As a result of the existence of these abandoned retail facilities, there is an excessive and disproportionate expenditure of public funds, inadequate public and private investment, unmarketability of property, growth in delinquencies and crime in the areas, together with an abnormal exodus of families and businesses, so that the decline of these areas impairs the value of private investments, threatens the sound growth and the tax base of taxing districts in these areas, and threatens the health, safety, morals, and welfare of the public. To remove and alleviate these adverse conditions, it is necessary to encourage private investment and restore and enhance the tax base of the taxing districts in the areas by the redevelopment of these abandoned retail facility sites.

Section 12-66-30.    For the purposes of this chapter, unless the context requires otherwise:

(1)    'Abandoned' means that at least eighty percent of the retail facility has been closed continuously to business or otherwise nonoperational for a period of at least one year immediately preceding the date on which the taxpayer files a 'Notice of Intent to Rehabilitate'.

(2)    'Retail facility site' means an abandoned retail facility and any abandoned parking areas, walkways, and sidewalks that are connected to, and serve, the facility. If the site originally consisted of a shopping center or mall, the entire site will qualify even if separate stores within the mall or center were originally owned by different taxpayers provided that at least one store or separate building in the shopping center or mall meets the square footage requirements of subsection (3).

(3)    'Retail facility' means a shopping center, mall, or free standing store whose most recent and primary use was to make retail sales, with at least one forty thousand square-foot or larger store or separate building.

(4)    'Local taxing entities' means a county, municipality, school district, special purpose district, and other entity or district with the power to levy ad valorem property taxes against the retail facility site.

(5)    'Local taxing entity ratio' means that percentage computed by dividing the millage rate of each local taxing entity by the total millage rate for the retail facility site.

(6)    'Placed in service' means the date upon which the retail facility site is completed and ready for its intended use. If the retail facility site is completed and ready for use in phases, each phase is considered to be placed in service when it is completed and ready for its intended use.

(7)    'Rehabilitation expenses' means the expenses incurred in renovating or demolishing an abandoned retail facility, and other expenses associated with site cleanup, grading, and infrastructure on the site, but excluding the cost of acquiring the retail facility site or the cost of personal property located at the retail facility site. Renovation must meet the requirements of Internal Revenue Code Section 47(c)(1)(A)(iii) to be qualified. If a taxpayer chooses not to renovate the retail facility, but instead chooses to demolish the retail facility, expenses incurred for demolishing the retail facility or the building and costs incurred for site cleanup, grading the land, and the costs of infrastructure for the site qualify as rehabilitation expenses. Some construction costs associated with a retail facility site may be allowed as rehabilitation expenses. New construction costs are allowed only to the extent the costs are for construction located within the original dimensions of the abandoned retail facility itself and the construction is equal to or less than the square footage of the retail facility as of the time of abandonment. For expenses associated with a retail facility site to qualify for the credit, the entire retail facility site must be rehabilitated.

(8)    'Notice of Intent to Rehabilitate' means a letter submitted by the taxpayer to the department or the municipality or county as specified in this chapter, indicating the taxpayer's intent to rehabilitate the retail facility site, the location of the retail facility site, the amount of acreage involved in the retail facility site, and the estimated expenses to be incurred in connection with rehabilitation of the retail facility site. The notice also must set forth information as to whether the taxpayer intends to rehabilitate or demolish the retail facility.

Section 12-66-40.    (A)    Subject to the terms and conditions of this chapter, a taxpayer who rehabilitates a retail facility site is eligible for either:

(1)    a credit against real property taxes levied by local taxing entities; or

(2)    a credit against income taxes imposed pursuant to Chapter 6, Title 12, or corporate license fees pursuant to Chapter 20, Title 12, or both.

(B)    If the taxpayer elects to receive the credit pursuant to subsection (A)(1), the following provisions apply:

(1)    The taxpayer shall file a Notice of Intent to Rehabilitate with the municipality, or the county if the retail facility site is located in an unincorporated area, in which the retail facility site is located before incurring its first rehabilitation expenses at the retail facility site. Failure to provide the Notice of Intent to Rehabilitate results in qualification of only those rehabilitation expenses incurred after notice is provided.

(2)    Once the Notice of Intent to Rehabilitate has been provided to the county or municipality, the municipality or the county shall first by resolution determine the eligibility of the retail facility site and the proposed rehabilitation expenses for the credit. A proposed rehabilitation of a retail facility site must be approved by a positive majority vote of the local governing body. For purposes of this subsection, 'positive majority vote' is as defined in Section 6-1-300(5). If the county or municipality determines that the retail facility site and the proposed rehabilitation expenses are eligible for the credit, there must be a public hearing and the municipality or county shall approve the retail facility site for the credit by ordinance. Before approving a retail facility site for the credit, the municipality or county shall make a finding that the credit does not violate a covenant, representation, or warranty in any of its tax increment financing transactions or an outstanding general obligation bond issued by the county or municipality.

(3)(a)    The amount of the credit is equal to twenty-five percent of the actual rehabilitation expenses made at the retail facility site times the local taxing entity ratio of each local taxing entity that has consented to the credit pursuant to item (4), if the actual rehabilitation expenses incurred in rehabilitating the retail facility site are between eighty percent and one hundred twenty-five percent of the estimated rehabilitation expenses set forth in the Notice of Intent to Rehabilitate. If the actual rehabilitation expenses exceed one hundred twenty-five percent of the estimated expenses set forth in the Notice of Intent to Rehabilitate, the taxpayer qualifies for the credit based on one hundred twenty-five percent of the estimated expenses as opposed to the actual expenses it incurred in rehabilitating the retail facility site. If the actual rehabilitation expenses are below eighty percent of the estimated rehabilitation expenses, the credit is not allowed. The ordinance must provide for the credit to be taken as a credit against up to seventy-five percent of the real property taxes due on the retail facility site each year for up to eight years.

(b)    The local taxing entity ratio is set as of the time the Notice of Intent to Rehabilitate is filed and remains set for the entire period that the credit may be claimed by the taxpayer.

(4)    Not fewer than forty-five days before holding the public hearing required by subsection (B)(2), the governing body of the municipality or county shall give notice to all affected local taxing entities in which the retail facility site is located of its intention to grant a credit against real property taxes for the retail facility site and the amount of estimated credit proposed to be granted based on the estimated rehabilitation expenses. If a local taxing entity does not file an objection to the tax credit with the municipality or county on or before the date of the public hearing, the local taxing entity is considered to have consented to the tax credit.

(5)    The credit against real property taxes may be claimed for the property tax year the rehabilitated retail facility site is first placed in service.

(6)    The governing body of a county or municipality where the retail facility site is located, by resolution, may reduce the forty thousand square-foot requirement contained in Section 12-64-30(3) to no less than twenty-five thousand square feet.

(C)    If the taxpayer elects to receive the credit pursuant to subsection (A)(2), the following provisions apply:

(1)    The taxpayer must file with the department a Notice of Intent to Rehabilitate before incurring its first rehabilitation expenses at the retail facility site. Failure to provide the Notice of Intent to Rehabilitate results in qualification of only those rehabilitation expenses incurred after the notice is provided.

(2)    The amount of the credit is equal to ten percent of the actual rehabilitation expenses made at the retail facility site if the actual rehabilitation expenses incurred in rehabilitating the retail facility site are between eighty percent and one hundred twenty-five percent of the estimated rehabilitation expenses set forth in the Notice of Intent to Rehabilitate. If the actual rehabilitation expenses exceed one hundred twenty-five percent of the estimated expenses set forth in the Notice of Intent to Rehabilitate, the taxpayer qualifies for the credit based on one hundred twenty-five percent of the estimated expenses as opposed to the actual expenses it incurred in rehabilitating the retail facility site. If the actual rehabilitation expenses are below eighty percent of the estimated rehabilitation expenses, the credit is not allowed.

(3)    The entire credit may not be taken for the taxable year in which the retail facility site is placed in service but must be taken in equal installments over an eight-year period beginning with the tax year in which the rehabilitated retail facility site is placed in service. Unused credit may be carried forward for the succeeding five years.

(4)    If the taxpayer qualifies for both the credit allowed by this subsection and the credit allowed pursuant to Section 12-6-3535, the taxpayer may claim both credits.

(5)    The credit allowed by this subsection is limited in use to fifty percent of either:

(a)    the taxpayer's income tax liability for the taxable year if taxpayer claims the credit allowed by this section as a credit against income tax imposed pursuant to Chapter 6; or

(b)    the taxpayer's corporate license fees for the taxable year if the taxpayer claims the credit allowed by this section as a credit against license fees imposed pursuant to Chapter 20.

(6)(a)    If the taxpayer leases the retail facility site, or part of the retail facility site, the taxpayer may transfer any applicable remaining credit associated with the rehabilitation expenses incurred with respect to that part of the site to the lessee of the site. If a taxpayer sells the retail facility site, or part of the retail facility site, the taxpayer may transfer all, or part of the remaining credit, associated with the rehabilitation expenses incurred with respect to that part of the site to the purchaser of the applicable portion of the retail facility site.

(b)    To the extent that the taxpayer transfers the credit, the taxpayer must notify the department of the transfer in the manner the department prescribes.

(7)    To the extent that the taxpayer is a partnership or a limited liability company taxed as a partnership, the credit may be passed through to the partners or members and may be allocated among any of its partners or members including, without limitation, an allocation of the entire credit to one partner or member."

B.    Chapter 34, Title 6 of the 1976 Code is repealed.

SECTION    39.A.    Title 12 of the 1976 Code is amended by adding:

Section 12-68-10.    This chapter may be cited as the 'South Carolina Motion Picture Incentive Act of 2008'.

Section 12-68-20.    (1) 'Base investment' means the aggregate funds actually invested and expended by a production company as qualified production expenditures incurred in this State that are directly used in state-certified production or productions.

(2)    'Company' means a corporation, partnership, limited liability company, or other business entity.

(3)    'Department' means the South Carolina Department of Commerce, including the South Carolina Film Commission and the Coordinating Council for Economic Development.

(4)    'Direct use expenditure' means an expenditure in a qualified production activity. A production company may only claim production expenditures that are directly used in a qualified production activity. In determining whether an expenditure is directly used in a qualified production activity, the South Carolina Film Commission will consider the proximity of the expenditure to the activity as well as the causal relationship between the expenditure and the activity.

(5)    'Live sporting event' means a scheduled sporting competition, game, or race that is not originated by a production company, but originated solely by an amateur, collegiate, or professional organization, institution, or association for live or tape-delayed television or satellite broadcast. The term does not include commercial advertising, an episodic television series, a television pilot, music video, motion picture, or documentary production where any sporting events are presented through archived historical footage or similar footage depicting either live sporting events that originated more than thirty days before the time of usage.

(6)    'Multimarket commercial distribution' means commercial distribution which extends to markets outside the State of South Carolina.

(7)    'Payroll' means salary or wages, subject to South Carolina income tax withholdings. In the case of a person or persons represented by a loan out company or a personal service company, and paid by a payroll service company, all payments qualify under Section 12-8-550.

(8)    'Production company' means a company which has been approved by the department and primarily engages in qualified production activities. 'Production company' does not mean or include any form of business owned, affiliated, or controlled, in whole or in part, by any company or person which is in default on any tax obligation of the State, or a loan made or guaranteed by the State until such time as the tax obligation or loan is satisfied.

(9)    'Qualified production activities' means the production of new film, video, or digital projects produced in this State and approved by the department such as feature films, pilots, movies for television, commercial advertisement, and music videos. The term 'qualified production activities' does not include the production of television coverage of news and live sporting events or a production produced by a production company if records, as required by 18 USC 2257, are to be maintained by that motion picture production company with respect to any performer portrayed in that single media or multimedia program.

For purposes of this definition, in the case of an episodic television series, an entire season of episodes is considered one production. The rebate is computed based on all of the production company's qualifying expenses incurred with respect to the production of the entire season's episodes.

(10)    'Qualified production expenditures' means preproduction, production and postproduction expenditures incurred in this State that are directly used in a qualified production activity, including without limitation the following from a South Carolina supplier: set construction and operation; wardrobes, make-up, accessories, and related services; costs associated with photography and sound synchronization, lighting and related services and materials; editing and related services; rental of facilities and equipment; leasing of vehicles; costs of food and lodging; digital or tape editing, transfers of film to tape or digital format, sound mixing, computer graphics services, and special effects services; total aggregate payroll; airfare, if the flight is directly related to production activities in South Carolina and purchased through a South Carolina travel agency or travel company; insurance costs if purchased through a South Carolina based insurance agency; and other direct costs of producing the project in accordance with generally accepted entertainment industry practices. The term must not include postproduction expenditures for marketing and distribution.

(11)    'Resident' means an individual who is domiciled in this State and who is liable for South Carolina income and property taxes.

(12)    'Secretary' means the Secretary of Commerce.

(13)    'South Carolina supplier' means an entity, including but not limited to a limited liability company, a single member limited liability company, a corporation, an S corporation, a partnership or a sole proprietorship that:

(a)    has at least one full-time employee within the State;

(b)    has a physical location in the State that consists of more than a post office box or drop box and that maintains normal business and has a South Carolina telephone number;

(c)    has registered to pay South Carolina income taxes and withholding taxes, and if applicable, South Carolina sales tax; and

(d)    has registered to do business, if required, with the South Carolina Secretary of State.

Section 12-68-30.    (A)    For the purposes of the recruitment and development of qualified production activities in South Carolina, the General Assembly shall appropriate to the department ten million dollars in addition to an amount equal to twenty-six percent of the general fund portion of admissions tax collected by the State for the previous fiscal year. These appropriations must be appropriated annually to the department in the general appropriations act and must be made available annually by September first to the department for the exclusive use of the South Carolina Film Commission. Unexpended funds from this source may be carried over to the next and succeeding fiscal years and must be used for the same purpose. The distribution of rebates may not exceed the amount funded to the department.

(B)    The department shall utilize funds to rebate direct use expenditures for qualified production activities or qualified production expenses as provided pursuant to Sections 12-68-40 and 12-68-60 when these expenditures equal or exceed a base investment of one million dollars in twelve consecutive months.

(C)(1)    An application for the rebates provided for by this chapter must be accepted only from production companies that report an anticipated base investment in the State in the aggregate equal to or exceeding one million dollars in a twelve month period.

(2)    The application must be approved by the department.

(D)    The department shall use up to seven percent of these funds for marketing for the following purposes:

(1)    to allow for assistance with recruitment or infrastructure development of the film industry, or

(2)    marketing, or

(3)    ally support, or

(4)    special events.

(E)(1)    The rebate provided in this section is available to the production company at the end of all qualified production activity. The production company shall apply to the South Carolina Film Commission for a certificate of completion once qualified production activity in South Carolina is complete. The production company shall provide any information the South Carolina Film Commission considers necessary to determine if the one million dollar base investment requirement has been met.

(2)    A production company may claim the rebate by filing a request for a rebate with the South Carolina Film Commission once the certificate of completion is obtained. To claim the rebate, the production company and all companies described in Section 12-68-40(B)(1)(b) or (c) must be current with respect to all taxes or loans due and owing the State or political subdivisions at the time of the filing of the request for the rebate. If the production company or company described in Section 12-68-40(B)(1)(b) or (c) is not current with respect to all taxes due and owing the State or political subdivisions, the production company may be barred from claiming the rebate until the taxes and loans have been paid in full.

(3)    The production company shall attach to its request for the rebate a copy of the certificate of completion and a copy of all assignments of the rebate, if applicable.

(F)    A production company claiming a rebate pursuant to this section, and all companies described in Section 12-68-40(B)(1)(b) or (c), shall make payroll books and records of all expenditures available for inspection to the South Carolina Film Commission at the times requested by the South Carolina Film Commission. Each production company claiming the rebate, at the time of filing, shall provide a report to the South Carolina Film Commission that includes the project's name, the name of each employee that worked on the project, the social security number for each employee, the beginning and ending date of employment, the number of days the employee worked, a job description for each employee, the total gross wages for each employee, the South Carolina taxable wages subject to withholding for each employee, and other information considered necessary by the South Carolina Film Commission. The report also must contain the total amount of withholding attributable to all employees that worked on the project in South Carolina.

(G)    A production company claiming a rebate pursuant to Section 12-68-60 shall make records of all expenditures available for inspection to the South Carolina Film Commission at the times requested by the South Carolina Film Commission. Each production company claiming the rebate shall provide a report, as prescribed by the South Carolina Film Commission, at the time of filing.

(H)    For purposes of this section, and as an exception to Section 12-54-240, a production company and a company described in Section 12-68-40(B)(1)(b) or (c) agree that the department and the Department of Revenue may provide information concerning the request for the rebate and the certificate of completion among the respective taxpayers and the respective agencies.

(I)    The allocations to production companies contemplated by this chapter must be made by the department. The South Carolina Film Commission may prescribe policies and procedures necessary to administer the application and award of the rebate.

(J)    The rebates paid to a production company are not income and not subject to tax pursuant to Chapter 6 of this title.

(K)     The department shall report annually on the use of all funds pursuant to this section. The report is a public record pursuant to the Freedom of Information Act, Chapter 4 of Title 30, and must be posted annually on the department's web site by December thirty-first for the previous fiscal year.

Section 12-68-40.    (A)    The department may rebate to a production company a portion of the South Carolina payroll of the employment of persons subject to South Carolina income tax withholdings in connection with production of qualified production activities. The rebate is twenty percent of the total aggregate South Carolina payroll. An additional ten percent rebate will be paid for all South Carolina residents who are paid a minimum of eighteen dollars an hour. For purposes of this section, total aggregate payroll does not include the portion of the salary of an employee whose salary is greater than one million dollars for each qualified production activity.

(B)(1)    For purposes of this section, an employee is an individual directly involved in the qualified production activity in South Carolina and who is an employee of a:

(a)    production company;

(b)    personal service corporation retained by a production company to provide persons used directly in the qualified production activity in South Carolina; or

(c)    payroll services or loan out company that is retained by a production company to provide employees who work directly in the qualified production activity in South Carolina.

(2)    For his wages to qualify for the rebate, the employee must be certified by the South Carolina Film Commission as a qualifying employee and the employee is liable for South Carolina income tax withholding. In the case of a person or persons represented by a loan out company or a personal service company, and paid by a payroll service company, all payments qualify pursuant to Section 12-8-550.

(C)    The rebate applies with respect to an employee described in subsection (B)(1)(b) or (c) of this section only if, before the rebate is applied for, the personal services corporation, payroll services company, or loan out company is approved and certified by the South Carolina Film Commission, and makes an irrevocable assignment of its rebate to the production company that produced the qualified production activity. The assignment must be made on a form provided by the South Carolina Film Commission which must include a waiver of confidentiality pursuant to Section 12-54-240. Upon assignment, the rebate may be paid only to the production company. A personal services corporation, payroll services company, or loan out company which is a subcontractor to another entity which has made or does make the irrevocable assignment is not required to make the assignment to execute the form. However, a subcontractor is not entitled to a rebate unless, before the start of the physical production in South Carolina, the subcontractor has notified the South Carolina Film Commission and the production company that it does not intend to assign its rebate.

Section 12-68-50.    At the time the production company is certified by the department, it may make, with the approval of the department, an irrevocable assignment of future payments attributable to the rebates made pursuant to Section 12-68-30 to a designated trustee. The assignment must specify the exact dollar amount being assigned to the designated trustee. For purposes of this chapter, 'designated trustee' means the single financier or financial institution designated by the production company to receive all assignments of payments made pursuant to this chapter and to the terms of an agreement entered into by the production company. If a production company elects to assign payments to the designated trustee, the election must be made on a form provided by the department, including a waiver of confidentiality pursuant to Section 12-54-240, and the payments may be paid only to the designated trustee. The production company shall file an application for the assignment with the department before applying for the rebate.

Section 12-68-60.    (A)(1)    The department may rebate to a production company thirty percent of the qualified production expenditures made by the production company in this State.

(2)    This subsection does not apply to payroll paid for production company emp