H 3614 Session 110 (1993-1994)
H 3614 General Bill, By R.A. Barber and J.J. Bailey
Similar(S 45)
A Bill to amend the Code of Laws of South Carolina, 1976 by adding Section
12-7-1273 so as to provide a temporary state income tax credit equal to ten
percent of the qualified wages paid to a person who was terminated from
employment as a result of the closing or realignment of a federal military
installation and to provide definitions.
03/03/93 House Introduced and read first time HJ-13
03/03/93 House Referred to Committee on Ways and Means HJ-13
A BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976,
BY ADDING SECTION 12-7-1273 SO AS TO PROVIDE A
TEMPORARY STATE INCOME TAX CREDIT EQUAL TO TEN
PERCENT OF THE QUALIFIED WAGES PAID TO A PERSON
WHO WAS TERMINATED FROM EMPLOYMENT AS A RESULT
OF THE CLOSING OR REALIGNMENT OF A FEDERAL
MILITARY INSTALLATION AND TO PROVIDE DEFINITIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 10, Chapter 7, Title 12 of the 1976 Code is
amended by adding:
"Section 12-7-1273. (A) As used in this section:
(1) `Applicable federal military installation' means a federal
military installation or other facility which is closed or realigned under:
(a) The Defense Base Closure and Realignment Act of 1990;
(b) Title II of the Defense Authorization Amendments and Base
Closure and Realignment Act; or
(c) Section 2687 of Title 10, United States Code.
(2) `Economic impact region' means a county or municipality any
portion of which is located within fifty miles of the boundaries of an
applicable federal military installation and any area not otherwise
included as part of the economic impact region if the State Development
Board determines the area to be adversely impacted by the closing or
realignment of an applicable federal military installation;
(3) `Qualified wages' means wages paid by an employer to an
employee if:
(a) at least ninety percent of the employee's services for the
employer during the taxable year are directly related to the conduct of
the employer's trade or business within an applicable federal military
installation or economic impact region; or
(b) at least fifty percent of the services of the employee for the
employer during the taxable year are performed within the installation
or region;
(4) (a) `Qualified wages' include, with respect to an individual,
only wages attributable to services rendered during the one year
beginning with the day the individual first works for an employer after
becoming a terminated employee.
(b) Qualified wages for a taxable year may not exceed the
excess, if any, of:
(i) thirty thousand dollars and over
(ii) the amount taken into account as qualified wages under
this section for a preceding taxable year.
(c) Qualified wages do not include wages paid for services
performed as an employee of the federal government or an agency or
instrumentality of the federal government.
(d) The amount of the qualified wages of a taxpayer under this
section for a taxable year must be reduced, but not below zero, by one
dollar for each dollar by which the employee's wages, whether or not
constituting qualified wages, exceed sixty thousand dollars.
(5) (a) `Terminated employee' means an individual who is
certified by the South Carolina Employment Security Commission,
under procedures similar to the procedures described in Internal
Revenue Code Section 51(d)(16), as being an individual, whether or not
a federal employee:
(i) who was employed on an applicable federal military
installation, and
(ii) whose job was terminated by reason of the closing or
realignment of the installation.
(b) An individual may not be treated as a terminated
employee with respect to a job termination after the later of:
(i) the close of the second calendar year following the
calendar year in which the commencement of the job termination occurs;
or
(ii) the close of the first year period beginning with the
date on which the employee first begins work for an employer after the
job termination.
(B) In the case of a terminated employee, there is allowed as a credit
against the tax imposed by this chapter for a taxable year an amount
equal to ten percent of the qualified wages of the employee for the
taxable year.
(C) For purposes of this section, the term `employee' includes an
employee described in Internal Revenue Code Section 401(c)(1),
relating to self-employed individual."
SECTION 2. This act takes effect January 1, 1994.
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