H*4548(Rat #0356, Act #0280 of 2002)  General Bill, By W.D. Smith, Scarborough, 
McLeod, Knotts and D. Owens
 A BILL TO AMEND SECTIONS 4-12-30, 4-29-67, AND 12-44-30, ALL AS AMENDED, CODE
 OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE VARIOUS FEES IN LIEU OF
 PROPERTY TAXES AND THE APPLICABLE INVESTMENT THRESHOLDS FOR ELIGIBILITY FOR
 THESE FEES, SO AS TO PROVIDE THAT THERE MAY BE INCLUDED TO MEET THE MINIMUM
 INVESTMENT THRESHOLD REQUIREMENT AMOUNTS EXPENDED FOR COSTS INCURRED FOR
 VOLUNTARY CLEANUP ACTIVITY OF A NONRESPONSIBLE PARTY PURSUANT TO ARTICLE 7,
 CHAPTER 56, TITLE 44, THE BROWNFIELDS VOLUNTARY CLEANUP PROGRAM AND TO PROVIDE
 THAT AT LEAST ONE MILLION DOLLARS OF CLEANUP COSTS INCURRED QUALIFY THE
 PROJECT FOR THE FEE; BY ADDING SECTION 12-6-3550 SO AS TO ALLOW A STATE
 CORPORATE INCOME TAX CREDIT FOR EXPENSES INCURRED BY A TAXPAYER IN CLEANING UP
 A SITE PURSUANT TO ARTICLE 7, CHAPTER 56, TITLE 44. THE BROWNFIELDS VOLUNTARY
 CLEANUP ACT, TO PROVIDE THE AMOUNT OF THE CREDIT, THOSE ELIGIBLE TO RECEIVE
 IT, AND THE PROCEDURES NECESSARY TO CLAIM THE CREDIT; BY AMENDING SECTION
 12-6-3360, AS AMENDED, RELATING TO THE TARGETED JOBS TAX CREDIT, SO AS TO
 ALLOW AN ADDITIONAL CREDIT EQUAL TO ONE THOUSAND DOLLARS FOR AN OTHERWISE
 QUALIFYING NEWLY CREATED JOB IF THE JOB IS CREATED AT A FACILITY ON PROPERTY
 WHICH HAS BEEN THE SUBJECT OF A COMPLETED RESPONSE ACTION PURSUANT TO A
 NONRESPONSIBLE PARTY VOLUNTARY CLEANUP CONTRACT UNDER ARTICLE 7, CHAPTER 56,
 TITLE 44, THE BROWNFIELDS VOLUNTARY CLEANUP PROGRAM; AND BY AMENDING SECTION
 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO ALLOW AN
 EXEMPTION FROM COUNTY TAXES FOR FIVE YEARS ON PROPERTY SUBJECT TO A
 NONRESPONSIBLE PARTY VOLUNTARY CLEANUP CONTRACT FOR WHICH A CERTIFICATE OF
 COMPLETION HAS BEEN ISSUED BY THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL
 CONTROL.-amended title

   01/22/02  House  Introduced and read first time HJ-10
   01/22/02  House  Referred to Committee on Ways and Means HJ-11
   02/14/02  House  Recalled from Committee on Ways and Means HJ-24
   02/14/02  House  Referred to Committee on Agriculture, Natural
                     Resources and Environmental Affairs HJ-24
   02/14/02  House  Member(s) request name added as sponsor: McLeod
   02/20/02  House  Member(s) request name added as sponsor: Knotts
   04/03/02  House  Committee report: Favorable with amendment
                     Agriculture, Natural Resources and Environmental
                     Affairs HJ-75
   04/09/02  House  Member(s) request name added as sponsor: D.Owens
   04/10/02  House  Amended HJ-45
   04/10/02  House  Read second time HJ-48
   04/11/02  House  Read third time and sent to Senate HJ-11
   04/11/02  Senate Introduced and read first time SJ-5
   04/11/02  Senate Referred to Committee on Finance SJ-5
   05/08/02  Senate Committee report: Favorable Finance SJ-11
   05/09/02  Senate Read second time SJ-30
   05/09/02  Senate Ordered to third reading with notice of
                     amendments SJ-30
   05/15/02  Senate Read third time and enrolled SJ-22
   05/22/02         Ratified R 356
   05/28/02         Signed By Governor
   06/17/02         Act No. 280
   07/03/02         Effective date 05/28/02
   07/03/02         Copies available

AN ACT TO AMEND SECTIONS 4-12-30, 4-29-67, AND 12-44-30, ALL AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE VARIOUS FEES IN LIEU OF PROPERTY TAXES AND THE APPLICABLE INVESTMENT THRESHOLDS FOR ELIGIBILITY FOR THESE FEES, SO AS TO PROVIDE THAT THERE MAY BE INCLUDED TO MEET THE MINIMUM INVESTMENT THRESHOLD REQUIREMENT AMOUNTS EXPENDED FOR COSTS INCURRED FOR VOLUNTARY CLEANUP ACTIVITY OF A NONRESPONSIBLE PARTY PURSUANT TO ARTICLE 7, CHAPTER 56, TITLE 44, THE BROWNFIELDS VOLUNTARY CLEANUP PROGRAM AND TO PROVIDE THAT AT LEAST ONE MILLION DOLLARS OF CLEANUP COSTS INCURRED QUALIFY THE PROJECT FOR THE FEE; BY ADDING SECTION 12-6-3550 SO AS TO ALLOW A STATE CORPORATE INCOME TAX CREDIT FOR EXPENSES INCURRED BY A TAXPAYER IN CLEANING UP A SITE PURSUANT TO ARTICLE 7, CHAPTER 56, TITLE 44. THE BROWNFIELDS VOLUNTARY CLEANUP ACT, TO PROVIDE THE AMOUNT OF THE CREDIT, THOSE ELIGIBLE TO RECEIVE IT, AND THE PROCEDURES NECESSARY TO CLAIM THE CREDIT; BY AMENDING SECTION 12-6-3360, AS AMENDED, RELATING TO THE TARGETED JOBS TAX CREDIT, SO AS TO ALLOW AN ADDITIONAL CREDIT EQUAL TO ONE THOUSAND DOLLARS FOR AN OTHERWISE QUALIFYING NEWLY CREATED JOB IF THE JOB IS CREATED AT A FACILITY ON PROPERTY WHICH HAS BEEN THE SUBJECT OF A COMPLETED RESPONSE ACTION PURSUANT TO A NONRESPONSIBLE PARTY VOLUNTARY CLEANUP CONTRACT UNDER ARTICLE 7, CHAPTER 56, TITLE 44, THE BROWNFIELDS VOLUNTARY CLEANUP PROGRAM; AND BY AMENDING SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO ALLOW AN EXEMPTION FROM COUNTY TAXES FOR FIVE YEARS ON PROPERTY SUBJECT TO A NONRESPONSIBLE PARTY VOLUNTARY CLEANUP CONTRACT FOR WHICH A CERTIFICATE OF COMPLETION HAS BEEN ISSUED BY THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL.

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

Minimum level of investment; cleanup costs

SECTION 1. Section 4-12-30(B)(3) of the 1976 Code, as last amended by Act 100 of 1999, is further amended to read:

"(3) The minimum level of investment must be at least five million dollars and must be invested within the time period provided in subsection (C)(2). If a county has an average annual unemployment rate of at least twice the state average during each of the last two calendar years, the minimum level of investment is one million dollars. Investments may include amounts expended by a sponsor or sponsor affiliate as a nonresponsible party in a voluntary cleanup contract on the property pursuant to Article 7, Chapter 56 of Title 44, the Brownfields Voluntary Cleanup Program, if the Department of Health and Environmental Control has issued a certificate of completion for the cleanup. If these amounts equal at least one million dollars, the investment threshold requirement of this chapter is deemed to have been met."

Minimum level of investment; cleanup costs

SECTION 2. Section 4-29-67(B) of the 1976 Code, as last amended by Act 89 of 2001, is further amended by adding at the end:

"(5) Investment for all purposes of this section may include amounts expended by a sponsor or sponsor affiliate as a nonresponsible party in a voluntary cleanup contract on the property pursuant to Article 7, Chapter 56 of Title 44, the Brownfields Voluntary Cleanup Program if the Department of Health and Environmental Control certifies completion of the cleanup. If these amounts equal at least one million dollars, the investment threshold requirement of this chapter is deemed to have been met."

Minimum level of investment; cleanup costs

SECTION 3. Section 12-44-30(14) of the 1976 Code is amended to read:

"(14) 'Minimum investment' means a project which results in a total investment by a sponsor of not less than five million dollars within the investment period. If a county has an average annual unemployment rate of at least twice the state average during each of the last two completed calendar years, the minimum investment is one million dollars. For all purposes of this chapter, the minimum investment may include amounts expended by a sponsor or sponsor affiliate as a nonresponsible party in a voluntary cleanup contract on the property pursuant to Article 7, Chapter 56 of Title 44, the Brownfields Voluntary Cleanup Program if the Department of Health and Environmental Control certifies completion of the cleanup. If these amounts equal at least one million dollars, the investment threshold requirement of this chapter is deemed to have been met."

Corporate income tax credit; cleanup costs

SECTION 4. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-3550. (A) A taxpayer is allowed a credit against taxes due under Section 12-6-530 for costs of voluntary cleanup activity by a nonresponsible party pursuant to Article 7, Chapter 56 of Title 44, the Brownfields Voluntary Cleanup Program, in the manner provided in this section.

(B) For expenses paid or accrued by the taxpayer in cleaning up a site under the applicable article, the credit is equal to fifty percent of the expenses of the cleanup or cash contributions to the cleanup but not more than fifty thousand dollars in a taxable year. The credit is available only for site rehabilitation conducted during the taxable year in which the tax credit application is submitted. Any unused credit, up to a total of one hundred thousand dollars, may be carried forward five years. Multiple taxpayers working jointly to clean up a single site are allowed the credit in the same proportion as their contribution to payment of cleanup costs.

(C) The taxpayer is allowed an additional ten percent of the total cleanup costs, not to exceed fifty thousand dollars, in the final year of clean up as evidenced by the Department of Health and Environmental Control issuing a certificate of completion for that site.

(D) To be eligible for the tax credit the applicant must have entered into a nonresponsible party voluntary cleanup contract with the Department of Health and Environmental Control (DHEC) pursuant to Section 44-56-750.

(E) To obtain the tax credit certificate, an applicant must annually file an application for certification, which must be received by DHEC by December thirty-first. The applicant shall provide all pertinent information requested on the tax credit application form including, at a minimum, the name and address of the applicant and the address and tracking identification of the eligible site. Along with the application form, the applicant shall submit the following:

(1) copies of contracts and documentation of contract negotiations, accounts, invoices, sales tickets, or other payment records for purchases, sales, leases, or other transactions involving the actual costs incurred for that taxable year related to site rehabilitation under the voluntary cleanup contract; and

(2) proof that the documentation submitted pursuant to item (1) has been reviewed and verified by an independent certified public accountant who must attest to the accuracy and validity of the costs incurred and paid by conducting an independent review of the data presented by the applicant. A copy of the accountant's report must be submitted to DHEC with the tax credit application.

(F) If upon review of the tax credit application and any supplemental documentation submitted by each applicant, DHEC determines that the applicant has met all requirements for the tax credit, it shall issue a tax credit certificate before April first. The applicant shall pay the administrative costs of this review pursuant to the provisions of Section 44-56-750(D).

(G) DHEC may prescribe the necessary forms required to claim the credit under this section and to provide the administrative guidelines and procedures required to administer this section.

(H) DHEC may revoke or modify any written decision granting eligibility for partial tax credits under this section if it is discovered that the tax credit applicant submitted any false statement, representation, or certification in any application, record, report, plan, or other document filed in an attempt to receive the credit under this section. DHEC shall immediately notify the Department of Revenue of any revoked or modified orders affecting previously granted tax credits. Additionally, the taxpayer shall notify the Department of Revenue of any change in tax credit claimed.

(I) This section applies for eligible cleanup expenses incurred after 2001."

Additional targeted jobs tax credit; Brownfields location incentive

SECTION 5. Section 12-6-3360(E) of the 1976 Code is amended to read:

"(E)(1) Taxpayers which qualify for the job tax credit provided in subsection (C) and which are located in a business or industrial park jointly established and developed by a group of counties pursuant to Section 13 of Article VIII of the Constitution of this State are allowed an additional one thousand dollar credit for each new full-time job created. This additional credit is permitted for five years beginning in the taxable year following the creation of the job.

(2) Taxpayers which otherwise qualify for the job tax credit provided in subsection (C) and which are located and the qualifying jobs are located on property where a response action has been completed pursuant to a nonresponsible party voluntary cleanup contract pursuant to Article 7, Chapter 56 of Title 44, the Brownfields Voluntary Cleanup Program, are allowed an additional one thousand dollar credit for each new full-time job created. This additional credit is permitted for five years beginning in the taxable year following the creation of the job. No credit under this item is allowed a taxpayer that is a 'responsible party' as defined in that article."

Five-year property tax exemption for cleanup site

SECTION 6. Section 12-37-220(B) of the 1976 Code is amended by adding an appropriately numbered item at the end to read:

"( ) Subject to the approval by resolution of the county governing body, property and improvements subject to a nonresponsible party voluntary cleanup contract for which a certificate of completion has been issued by the Department of Health and Environmental Control pursuant to Article 7, Chapter 56 of Title 44, the Brownfields Voluntary Cleanup Program, is exempt from ad valorem taxation in the same manner and to the same extent as the exemption allowed pursuant to subsection (A)(7) of this section. This exemption applies beginning with the taxable year in which the certificate of completion is issued."

When incentives begin

SECTION 7. The incentives offered in this act apply only to projects receiving a certification of completion from the Department of Health and Environmental Control after the effective date of this act.

Time effective

SECTION 8. This act takes effect upon approval by the Governor.

Ratified the 22nd day of May, 2002.

Approved the 28th day of May, 2002.