H*3405 Session 107 (1987-1988)
H*3405(Rat #0545, Act #0488 of 1988) General Bill, By B.O. Baker
A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
12-7-1250, so as to allow a state corporate income tax credit for corporate
contributions for infrastructure construction or improvement, to limit the
credit to fifty percent of the expenses, not to exceed ten thousand dollars,
to allow a three-year carry forward of unused credit, and to define
infrastructure as sewer lines, water lines, related facilities, and roads not
for the taxpayer's exclusive benefit, built to appropriate standards, and
dedicated to public use, or, in the case of water and sewer lines built in
service areas of privately owned water or sewer systems, deeded to a
qualifying private entity, to require expenses to be allocated when a taxpayer
also benefits from a project, to define qualifying private entity, and to
require the amount of the tax credit allowed for a road project to be added to
the tax due of the taxpayer who claimed the credit if the road is removed from
the State Highway System or Public Road System.-amended title
12/21/87 House Prefiled
12/21/87 House Referred to Committee on Ways and Means
01/12/88 House Introduced and read first time HJ-277
01/12/88 House Referred to Committee on Ways and Means HJ-277
02/02/88 House Committee report: Favorable Ways and Means HJ-839
02/10/88 House Debate adjourned until Thursday, February 11,
1988 HJ-1063
02/11/88 House Read second time HJ-1108
02/11/88 House Unanimous consent for third reading on next
legislative day HJ-1111
02/12/88 House Read third time and sent to Senate HJ-1166
02/16/88 Senate Introduced and read first time SJ-5
02/16/88 Senate Referred to Committee on Finance SJ-5
04/06/88 Senate Recalled from Committee on Finance SJ-143
04/07/88 Senate Amended SJ-40
04/07/88 Senate Read second time SJ-42
04/07/88 Senate Ordered to third reading with notice of
amendments SJ-42
04/14/88 Senate Read third time SJ-192
04/14/88 Senate Returned SJ-192
04/20/88 House Concurred in Senate amendment and enrolled HJ-3122
04/26/88 Ratified R 545
05/02/88 Signed By Governor
05/02/88 Act No. 488
05/02/88 See act for exception to or explanation of
effective date
05/23/88 Copies available
(A488, R545, H3405)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION
12-7-1250 SO AS TO ALLOW A STATE CORPORATE INCOME TAX CREDIT FOR CORPORATE
CONTRIBUTIONS FOR INFRASTRUCTURE CONSTRUCTION OR IMPROVEMENT, TO LIMIT THE CREDIT
TO FIFTY PERCENT OF THE EXPENSES, NOT TO EXCEED TEN THOUSAND DOLLARS, TO ALLOW
A THREE-YEAR CARRY-FORWARD OF UNUSED CREDIT, AND TO DEFINE INFRASTRUCTURE AS
SEWER LINES, WATER LINES, RELATED FACILITIES, AND ROADS NOT FOR THE TAXPAYER'S
EXCLUSIVE BENEFIT, BUILT TO APPROPRIATE STANDARDS, AND DEDICATED TO PUBLIC USE,
OR, IN THE CASE OF WATER AND SEWER LINES BUILT IN SERVICE AREAS OF PRIVATELY
OWNED WATER OR SEWER SYSTEMS, DEEDED TO A QUALIFYING PRIVATE ENTITY, TO REQUIRE
EXPENSES TO BE ALLOCATED WHEN A TAXPAYER ALSO BENEFITS FROM A PROJECT, TO DEFINE
QUALIFYING PRIVATE ENTITY, AND TO REQUIRE THE AMOUNT OF THE TAX CREDIT ALLOWED
FOR A ROAD PROJECT TO BE ADDED TO THE TAX DUE OF THE TAXPAYER WHO CLAIMED THE
CREDIT IF THE ROAD IS REMOVED FROM THE STATE HIGHWAY SYSTEM OR PUBLIC ROAD
SYSTEM.
Be it enacted by the General Assembly of the State of South Carolina:
Income tax credit
SECTION 1. Article 10, Chapter 7 of Title 12 of the 1976 Code is amended by
adding:
"Section 12-7-1250. (A)
A corporate taxpayer is allowed as a credit against taxes due pursuant to Section
12-7-230 an amount equal to fifty percent, not to exceed ten thousand dollars,
of expenses paid or accrued by the taxpayer in building or improving any one
infrastructure project. Any unused credit may be carried forward three years.
(B) For purposes of the credit allowed by this
section, an infrastructure project includes water lines, sewer lines, their
related facilities, and roads that:
(1) do not exclusively benefit the taxpayer;
(2) are built to applicable standards;
(3) are dedicated to public use or, in the case of water and sewer lines and
their related facilities in areas served by a private water and sewer company,
the water and sewer lines are deeded to a qualified private entity.
If an infrastructure project benefits more than the taxpayer, the expenses of
the taxpayer must be allocated to the various beneficiaries and only those
expenses not allocated to the taxpayer's benefit qualify for the credit. The
credit may be claimed for contributions to a governmental entity and, in the case
of water or sewer lines and their related facilities in areas served by a private
water and sewer company, to a qualified private entity, for the construction or
improvements of qualifying infrastructure projects, or for expenses incurred by
the taxpayer in building or improving qualifying infrastructure projects for
dedication to public use. The credit may be claimed before dedication or
conveyance if the taxpayer submits with its tax return a letter of intent signed
by the chief operating officer of the appropriate governmental entity or
qualified private entity stating that upon completion the governmental entity or
qualified private entity shall accept the infrastructure project for the
appropriate use.
(C) For purposes of this section, a qualified private entity is any entity
holding the required permits, certifications, and licenses from the South
Carolina Department of Health and Environmental Control, the South Carolina
Public Service Commission, and any other state agencies, departments, or
commissions, from which approvals must be obtained in order to operate as a
utility furnishing water supply services or sewage collection or treatment
services, or both, to the public.
(D) A qualifying private entity is not allowed the credit provided by this
section for expenses it incurs in building or improving facilities it owns,
manages, or operates.
(E) If a road qualifying for the credit allowed by this section is
subsequently removed from the state highway or public road system the amount of
the credit allowed for the construction of the road must be added to any
corporate income tax due from the taxpayer for the first taxable year following
the removal of the road from public use. The South Carolina Tax Commission shall
by regulation implement the provisions of this subsection."
Time effective
SECTION 2. This act, upon approval by the Governor, is effective for taxable
years beginning after 1987. |