Reference is to the bill as introduced.
Amend the bill, as and if amended, by striking SECTIONS 2 and 3 and inserting:
/ SECTION 2. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3795.
(A) As used in this section:
(1)
'Federal housing tax credit' means the federal tax credit
as provided in Section 42 of the Internal Revenue Code of 1986,
as amended.
(2)
'Median income' means those incomes that are determined by
the federal Department of Housing and Urban Development
guidelines and adjusted for family size.
(3)
'Project' means a housing project that has restricted
rents that do not exceed thirty percent of median income for at
least forty percent of its units occupied by persons or families
having incomes of sixty percent or less of the median income, or
at least twenty percent of the units occupied by persons or
families having incomes of fifty percent or less of the median
income.
(4)
'Qualified project' means a qualified low-income building
as that term is defined in Section 42 of the Internal Revenue
Code of 1986, as amended, that is located in South Carolina.
(5)
'Taxpayer' means a sole proprietor, partnership,
corporation of any classification, limited liability company, or
association taxable as a business entity that is subject to
South Carolina taxes pursuant to Section 12-6-510, Section
12-6-530, Chapter 11, Title 12, or Chapter 7, Title 38.
(B)(1) A state tax
credit 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, Title 12, corporate license fees
imposed pursuant to Chapter 20, Title 12, and insurance premium
and retaliatory taxes imposed pursuant to Chapter 7, Title 38,
to be termed the South Carolina housing tax credit, and is
allowed with respect to each qualified project placed in service
after January 1, 2020, in an amount equal to the federal housing
tax credit allowed with respect to such qualified project. In
computing a tax payable by a taxpayer pursuant to Section
38-7-90, the credit allowed pursuant to this section must be
treated as a premium tax paid pursuant to Section 38-7-20.
(2)(a)
If under Section 42 of the Internal Revenue Code of 1986,
as amended, a portion of any federal housing tax credit taken on
a project is required to be recaptured, the taxpayer claiming
any state tax credit with respect to such project is also
required to recapture a portion of any state tax credit
authorized by this section. The state recapture amount is equal
to the proportion of the state tax credit claimed by the
taxpayer that equals the proportion the federal recapture amount
bears to the original federal housing tax credit amount subject
to recapture.
(b)
In the event that recapture of any South Carolina housing
tax credit is required, any amended return submitted to the
department, as provided in this section, shall include the
proportion of the state tax credit required to be recaptured,
the identity of each taxpayer subject to the recapture, and the
amount of tax credit previously allocated to such taxpayer.
(3)
The total amount of the tax credit allowed by section for
a taxable year may not exceed the taxpayer's income tax
liability. Any unused tax credit may be carried forward to
apply to the taxpayer's next five succeeding years' tax
liability. The taxpayer may not apply the credit against any
prior tax years' tax liability.
(4)
The tax credit allowed by this section, and any recaptured
tax credit, must be allocated among some or all of the partners,
members, or shareholders of the entity owning the project in any
manner agreed to by such persons, regardless of whether such
persons are allocated or allowed any portion of the federal
housing tax credit with respect to the project.
(C) The department, in
consultation with the South Carolina State Housing Finance and
Development Authority, may adopt rules and policies necessary to
implement and administer the provisions of this section."
SECTION 3. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 4. This act takes effect upon approval of the Governor and applies to taxable years beginning after 2019. /
Renumber sections to conform.
Amend title to conform.