H*4397 Session 111 (1995-1996)
H*4397(Rat #0234, Act #0231 of 1996) General Bill, By Wilkins, Allison, Bailey,
H. Brown, J. Brown, Cato, Gamble, Harrell, Haskins, R.J. Herdklotz, T.E. Huff,
H.G. Hutson, Jennings, Law, Littlejohn, Richardson, Sharpe, Simrill, D. Smith,
Townsend, Walker and W.J. Young
A Bill enacting the Economic Development Industrial Cluster Act of 1996, by
amending the Code of Laws of South Carolina, 1976, by adding Sections
12-6-3480, 38-7-190, 12-10-45, and 12-20-105 so as to allow certain income tax
credits to be applied against insurance premium tax liabilities and vice
versa, to allow certain income tax credits to be applied against corporate
license fees, and to provide for the designation of additional enterprise
zones in the case of projects of qualifying tire manufacturers; to amend
Section 12-6-3360, as amended, relating to the targeted jobs tax credit, so as
to extend the tax credit carry forward period from ten to fifteen years; to
amend Section 12-10-70, relating to additional tax credits allowed in
enterprise zones and other situations related to socio-economic status, so as
to extend these provisions to qualifying tire manufacturers and allow the
qualification of a percentage of transferred employees as new employees in the
case of an eligible tire manufacturer; to amend Section 12-10-80, relating to
the job development fees allowed qualifying businesses, so as to clarify the
status of the fees in the event of disqualification and provide additional
circumstances under which job development fees may be expended; to amend
Section 12-14-30, relating to definitions under the Economic Impact Zone
Community Development Act of 1995, so as to provide additional eligibility for
qualifying for the benefits allowed in the Act; to amend Section 12-21-2423,
as amended, relating to to the retention of a portion of admissions license
taxes for major tourism or recreation projects, so as to clarify the
application of the provision allowing the retention of these tax revenues; and
to amend Section 12-37-930, as amended, relating to valuation of property and
allowable depreciation of property for purposes of property taxation, so as to
allow a higher depreciation rate for rubber products and allow a lower
depreciation limit for qualifying tire manufacturers; and to provide the
duties of the Code Commissioner in the preparation of the cumulative
supplement with respect to Section 12-10-70 as amended by this Act.-amended
title
12/20/95 House Prefiled
12/20/95 House Referred to Committee on Ways and Means
01/09/96 House Introduced and read first time HJ-76
01/09/96 House Referred to Committee on Ways and Means HJ-77
01/10/96 House Committee report: Favorable with amendment Ways
and Means HJ-3
01/16/96 House Debate adjourned HJ-19
01/16/96 House Special order, set for Wed. 1/17/96, immediately
following third reading of statewide uncontested
bills (Under H. 4449) HJ-24
01/17/96 House Amended HJ-13
01/17/96 House Read second time HJ-20
01/17/96 House Roll call Yeas-113 Nays-1 HJ-20
01/18/96 House Read third time and sent to Senate HJ-12
01/23/96 Senate Introduced and read first time SJ-15
01/23/96 Senate Referred to Committee on Finance SJ-15
01/31/96 Senate Committee report: Favorable Finance SJ-7
02/01/96 Senate Read second time SJ-11
02/01/96 Senate Unanimous consent for third reading on next
legislative day SJ-11
02/02/96 Senate Read third time and enrolled SJ-1
02/06/96 Ratified R 234
02/12/96 Signed By Governor
02/12/96 Effective date 02/12/96 except where otherwise stated
03/06/96 Copies available
03/06/96 Act No. 231
(A231, R234, H4397)
AN ACT ENACTING THE ECONOMIC DEVELOPMENT
INDUSTRIAL CLUSTER ACT OF 1996, BY AMENDING THE CODE
OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS
12-6-3480, 38-7-190, 12-10-45, AND 12-20-105 SO AS TO ALLOW
CERTAIN INCOME TAX CREDITS TO BE APPLIED AGAINST
INSURANCE PREMIUM TAX LIABILITIES AND VICE VERSA, TO
ALLOW CERTAIN INCOME TAX CREDITS TO BE APPLIED
AGAINST CORPORATE LICENSE FEES, AND TO PROVIDE FOR
THE DESIGNATION OF ADDITIONAL ENTERPRISE ZONES IN
THE CASE OF PROJECTS OF QUALIFYING TIRE
MANUFACTURERS; TO AMEND SECTION 12-6-3360, AS
AMENDED, RELATING TO THE TARGETED JOBS TAX CREDIT,
SO AS TO EXTEND THE TAX CREDIT CARRY FORWARD
PERIOD FROM TEN TO FIFTEEN YEARS; TO AMEND SECTION
12-10-70, RELATING TO ADDITIONAL TAX CREDITS ALLOWED
IN ENTERPRISE ZONES AND OTHER SITUATIONS RELATED TO
SOCIO-ECONOMIC STATUS, SO AS TO EXTEND THESE
PROVISIONS TO QUALIFYING TIRE MANUFACTURERS AND
ALLOW THE QUALIFICATION OF A PERCENTAGE OF
TRANSFERRED EMPLOYEES AS NEW EMPLOYEES IN THE CASE
OF AN ELIGIBLE TIRE MANUFACTURER; TO AMEND SECTION
12-10-80, RELATING TO THE JOB DEVELOPMENT FEES
ALLOWED QUALIFYING BUSINESSES, SO AS TO CLARIFY THE
STATUS OF THE FEES IN THE EVENT OF DISQUALIFICATION
AND PROVIDE ADDITIONAL CIRCUMSTANCES UNDER WHICH
JOB DEVELOPMENT FEES MAY BE EXPENDED; TO AMEND
SECTION 12-14-30, RELATING TO DEFINITIONS UNDER THE
ECONOMIC IMPACT ZONE COMMUNITY DEVELOPMENT ACT
OF 1995, SO AS TO PROVIDE ADDITIONAL ELIGIBILITY
FOR QUALIFYING FOR THE BENEFITS ALLOWED IN THE ACT;
TO AMEND SECTION 12-21-2423, AS AMENDED, RELATING TO
THE RETENTION OF A PORTION OF ADMISSIONS LICENSE
TAXES FOR MAJOR TOURISM OR RECREATION PROJECTS, SO
AS TO CLARIFY THE APPLICATION OF THE PROVISION
ALLOWING THE RETENTION OF THESE TAX REVENUES; TO
AMEND SECTION 12-37-930, AS AMENDED, RELATING TO
VALUATION OF PROPERTY AND ALLOWABLE DEPRECIATION
OF PROPERTY FOR PURPOSES OF PROPERTY TAXATION, SO AS
TO ALLOW A HIGHER DEPRECIATION RATE FOR RUBBER
PRODUCTS AND ALLOW A LOWER DEPRECIATION LIMIT FOR
QUALIFYING TIRE MANUFACTURERS; AND TO PROVIDE THE
DUTIES OF THE CODE COMMISSIONER IN THE PREPARATION
OF THE CUMULATIVE SUPPLEMENT WITH RESPECT TO
SECTION 12-10-70 AS AMENDED BY THIS ACT.
Be it enacted by the General Assembly of the State of South
Carolina:
Citation
SECTION 1. This act may be cited as the Economic Development
Industrial Cluster Act of 1996.
Findings
SECTION 2. The General Assembly finds that:
(1) The economic well-being of the citizens of the State will be
enhanced by the increased development and growth of business within
the State, and that it is in the best interest of the State to induce the
location or expansion of business within the State in order to promote the
public purpose of creating new jobs within the State;
(2) This act will promote the creation of industrial clusters. These
industrial clusters will produce new and vibrant growth which will in turn
expand our economy through business interaction. These interactions will
reinforce and strengthen the competitive position of each of the cluster's
constituent businesses.
The industrial clusters will develop particular sets of location-specific
strengths. Each area in the State which has a unique characteristic which
promotes a cluster, such as raw materials, access to markets, or
transportation access, will eventually create a concentration of knowledge
in a particular discipline, all of which will expand economy opportunities
to the citizens of the State.
Tax credits
SECTION 3. A. Article 25, Chapter 6, Title 12 of the 1976 Code is
amended by adding:
"Section 12-6-3480. (A) Notwithstanding any other provision of
law:
(1) Any credits under Title 38 may be applied against any taxes
imposed under this chapter or license fees imposed under Chapter 20 of
this title.
(2) Any credits under this chapter which are earned by one member
of a controlled group of corporations may be used and applied by that
member and by any other members of the controlled group of
corporations.
(3) Any limitations upon the total amount of liability for taxes or
license fees that can be reduced by the use of a credit must be computed
before any other credit is used to reduce any tax or license fee liability
under this chapter or Chapter 20 of this title. Subject to item (4), the
taxpayer may apply any credits arising under this chapter in any order the
taxpayer elects.
(4) No credit may be used more than once, and all credits must be
used, to the extent possible in any given year, first by the company that
earned them, and second against the tax which generated them.
(5) As used in this section:
(a) the term `controlled group of corporations' has the same
meaning as provided under Section 1563 of the Internal Revenue Code
without regard to Section 1563(a)(4), (b)(2)(A), only with respect to
corporations which are in existence for less than one-half the number of
days in the tax year referred to therein, and (b)(2)(C) and (D);
(b) the term `tax credit' or `credit' means a statutorily directed or
authorized reduction in the tax liability made after any applicable tax
rates are applied."
B. This section is effective for tax years beginning after 1995.
Tax credits
SECTION 4. A. Chapter 20, Title 12 of the 1976 Code, as added by
Act 76 of 1995, is amended by adding:
"Section 12-20-105. License fees may be reduced by credits as
provided in Section 12-6-3410 or Section 12-6-3480, or both of these
sections."
B. This section is effective for tax years beginning after 1995.
Tax credits
SECTION 5. A. Chapter 7, Title 38 of the 1976 Code is amended by
adding:
"Section 38-7-190. (A) Notwithstanding any other provision of
law:
(1) Any credits under Chapter 6 of Title 12 may be applied against
any taxes, license fees, and other assessments imposed under this
title.
(2) Any credits under this title which are earned by one member of
a controlled group of corporations may be used and applied by that
member and any other members of the controlled group of
corporations.
(3) Any limitations upon the total amount of liability for taxes that
can be reduced by the use of a credit must be computed before any credit
is used to reduce any tax liability under this title. Subject to item (4), the
taxpayer may apply any credits arising under this title in any order the
taxpayer elects.
(4) No credit can be used more than once, and all credits must be
used, to the extent possible in any given year, first by the company that
earned them, and second against the tax which generated them.
(5) As used in this section:
(a) The term `controlled group of corporations' has the same
meaning as provided under Section 1563 of the Internal Revenue Code
without regard to Section 1563(a)(4), (b)(2)(A) only with respect to
corporations which are in existence for less than one-half the number of
days in the tax year referred to therein, and (b)(2)(C) and (D);
(b) The term `tax credit' or `credit' means a statutorily directed or
authorized reduction in the tax liability made after any applicable tax
rates are applied."
B. This section is effective for tax years beginning after 1995.
Enterprise zone
SECTION 6. Chapter 10, Title 12 of the 1976 Code, as added by Act 25
of 1995, is amended by adding:
"Section 12-10-45. A tire manufacturer that has over one billion
dollars in capital investment in this State, and employs over five
thousand workers in this State may, after certification by the council,
designate up to two census tracts, but not to exceed four hundred acres
per site, in any area of the State as an enterprise zone provided that a
capital investment of at least one hundred million dollars be made over a
five-year period at each site. The tire manufacturer's capital investment
must be based upon the gross cost of assets in South Carolina as shown
on the manufacturer's property tax and fee-in-lieu of property tax filings.
The council will certify the manufacturer if it determines that the
available incentives are appropriate for the new project, the total benefits
of the new project exceed the costs to the public, and the qualifying
business otherwise fulfills the requirements of this chapter."
Carry forward
SECTION 7. A. Section 12-6-3360(H) of the 1976 Code, as added by
Act 76 and amended by Act 145 of 1995, is further amended to read:
"(H) A credit claimed under this section but not used in a
taxable year may be carried forward for fifteen years from the taxable
year in which the credit is earned by the taxpayer. Credits which are
carried forward must be used in the order earned and before jobs credits
claimed in the current year."
B. This section is effective for taxable years beginning after 1995.
Tax credits
SECTION 8. Section 12-10-70(1) of the 1976 Code, as added by Act 25
of 1995, is amended to read:
"(1) (a) If at least fifty-one percent of the full-time employees
hired for the project either reside in an enterprise zone at the time of
employment, have a household income that is eighty percent or less of
the median household income for the county prior to employment, or
have been a recipient of Aid to Families with Dependent Children
(AFDC) payments within the past twelve months; or
(b) If the business is a tire manufacturer that has a capital
investment in this State which exceeds one billion dollars and employs
more than five thousand employees in this State at all times during the
tax year for which the credit is claimed, the qualifying business is
entitled to the jobs tax credit for the period and in the amount provided
in Section 12-6-3360(C)(1); in addition, a qualifying business is entitled
to an additional five hundred dollars a year tax credit in the third, fourth,
and fifth year of any AFDC recipient's continued employment with the
qualifying business, based on the status of the employee at the time of
beginning employment. Except as stated below, a new job is not
considered a new job for the purpose of this credit if it replaces the same
job that was part of a reduction in force in the preceding twelve months.
A tire manufacturer may qualify as new jobs up to ninety percent of the
employees transferred from an existing project in the State to one of up
to three new projects approved by the council if:
(i) the tire manufacturer has a capital investment in this State
which exceeds one billion dollars, as defined in Section 12-10-45;
(ii) the tire manufacturer employs more than five thousand
employees in this State at all times during the tax year for which the
credit is claimed;
(iii) the tire manufacturer makes a capital investment in excess of
five hundred million dollars in this State over the five-year period
beginning on the stipulated date; and
(iv) the council and the tire manufacturer enter into a
revitalization agreement that, among other provisions:
(A) clearly defines the three new projects,
(B) limits the credit for transferred jobs to jobs that were either
backfilled by other new hires in the State or the transfer was needed to
retain an employee's employment in the State,
(C) includes a provision for an audit by the Department of
Revenue and Taxation to ensure that the credit for transferred employees
is only allowed for employees transferred for valid business reasons from
projects in operation in the State on the stipulated date to one of the three
defined new projects, and
(D) no credit will be allowed for employees transferred solely to
obtain the credit."
Job development fee
SECTION 9. A. Subsection (A) of Section 12-10-80 of the 1976 Code,
as added by Act 32 of 1995, is amended to read:
"(A) Upon certification by the council to the department of the
council's determination that a business is a qualifying business, a
qualifying business may collect a job development fee by retaining an
amount of employee withholding permitted by subsection (C) or (D), or
both, for the purposes permitted by subsection (B) or (D), respectively.
The amount retained is the property of the business, subject to all of the
conditions in this section including the later possible requirement that the
funds be transferred to this State as withholding and the possible
forfeiture of the funds to this State as misappropriated withholding. The
retained withholding must be maintained in an escrow account with a
bank which is insured by the Federal Deposit Insurance Corporation. To
the extent the money is not used as permitted by subsection (B) or (D), it
must be treated as misappropriated employee withholding. Employee
withholding may not be retained from an employee whose job was
created in this State before the entry of the qualifying business into a
revitalization agreement. If a qualifying business retains employee
withholding under this section, it shall make its payroll books and
records available for inspection by the council and the department at the
times the council and the department request. Each qualifying business
retaining employee withholding under this section shall file with the
council and the department the information and documentation respecting
the retention and use of the employee withholding according to the
revitalization agreement. Each qualifying business which retains in
excess of ten thousand dollars in any calendar year shall furnish an
audited report prepared by an independent certified public accountant
which itemizes the sources and uses of the funds. The audited report
must be filed with the council and the department no later than June
thirtieth following the calendar year of the retention. Each qualifying
business retaining employee withholding under this section is allowed a
credit against the withholding tax liability provided in Chapter 9 of this
title otherwise owed to the State, the credit not to exceed the lesser of the
amount of such tax or the aggregate amount of employee withholding
retained. No employer may withhold an amount that results in any
employee ever receiving a smaller amount of wages on either a weekly
or on an annual basis than the employee would otherwise receive in the
absence of this chapter."
B. That portion of subsection (B) preceding item (1) of Section
12-10-80 of the 1976 Code, as added by Act 32 of 1995, is amended to
read:
"A qualifying business may collect a job development fee under
the revitalization agreement for a period not to exceed fifteen years. A
qualifying business must create at least ten new, full-time jobs at the
South Carolina facility described in the revitalization agreement. Capital
expenditures from the escrow account must be expended at the
above-described facility or for utility or transportation improvements that
serve this facility. The qualifying business may expend funds from the
escrow account if (a) the expenditures are incurred during the term of the
revitalization agreement or within sixty days before the execution of a
revitalization agreement, including a preliminary revitalization agreement,
(b) the expenditures from the escrow account are authorized by the
revitalization agreement, (c) the expenditures are approved in writing by
the council and the department prior to expenditure, and (d) the
expenditures are for any of the following purposes:"
C. This section is effective April 4, 1995.
Definitions
SECTION 10. A. Section 12-14-30 of the 1976 Code, as added by Act
25 of 1995, is amended to read:
"Section 12-14-30. As used in this chapter:
(1) An `economic impact zone' is a county or municipality, any
portion of which is located within fifty miles of the boundaries of an
applicable federal military installation or an applicable federal facility,
and any area not otherwise included as part of the economic impact zone
if the State Budget and Control Board determines the area to be
adversely impacted by the closing, realignment, or downsizing of an
applicable federal military installation or an applicable federal
facility.
(2) An `applicable federal military installation' is one 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.
(3) An `applicable federal facility' is one which is:
(a) a federal facility that has reduced its permanent employment by
three thousand or more jobs after December 31, 1990;
(b) a manufacturing facility that has closed or experienced
permanent layoffs and notified the Employment Security Commission
under the federal Worker Adjustment and Retraining Notification
(WARN) Act of 1988. The number of jobs lost must equal twenty-five
percent or more of the total workforce in the census tract in which the
facility is located at the time the layoff occurred. The job loss must have
occurred no more than five years before April 4, 1995, except in any
census tract where a catastrophic loss of one thousand or more jobs from
a single employer has occurred since 1980 and fewer than half the jobs
have been replaced.
(4) `Internal Revenue Code' has the meaning provided in Section
12-6-40(A)."
B. This section is effective April 4, 1995.
Admissions taxes
SECTION 11. Section 12-21-2423 of the 1976 Code, as last amended by
Act 497 of 1994, is further amended to read:
"Section 12-21-2423. An amount equal to one-fourth of the
license tax on admissions to a major tourism or recreation facility
collected by the Department of Revenue and Taxation beginning when
the facility is open to the general public or the application is approved by
the department, whichever is later, and ending fifteen years thereafter
must be paid to the county or municipality in which the major tourism or
recreation facility is located to be used directly or indirectly for
additional infrastructure improvements. If the facility is located in an
unincorporated area of a county, the payment must be made to the county
governing body and, if located within the corporate limits of a
municipality, the payment must be made to the municipal governing
body. The county or municipal governing body may share funds
received from these payments with another county, special purpose
district, or municipal governing body to provide additional infrastructure
facilities or services in support of the tourism or recreation facility that
generates the admission tax revenues responsible for the payments. An
additional amount equal to one-fourth of the license tax on admissions to
a major tourism or recreation facility collected by the beginning when the
facility is open to the general public or the application is approved by the
department, whichever is later, and ending fifteen years thereafter must
be transferred to the State Treasurer to be deposited into a special
tourism infrastructure development fund and distributed pursuant to the
approval of the Advisory Coordinating Council for Economic
Development of the Department of Commerce as provided in this section.
Deposits into the fund must be separated into special accounts based on
which facility generated the transfer. Local units of governments within
five miles of a major tourism or recreation facility may apply to the
council for infrastructure development grants from the special account for
which they are eligible. The amount of the funds received by each of the
eligible local governments must be determined by the council based upon
its review of a grant application submitted by each government.
Preference must be given to applications for projects which directly or
indirectly serve the generating facility or other development occurring as
a result of the generating facility. Grants may run for more than one
year and may be based upon a specified dollar amount or a percentage of
the funds annually deposited into the special account. After approval of
a grant application the council may approve the release of funds to
eligible local governments. Funds must be used directly or indirectly for
additional infrastructure improvements provided in this section. The
council shall adopt guidelines to administer the fund including, but not
limited to, tourism infrastructure development grant application criteria
for review and approval of grant applications. Expenses incurred by the
council in administering the fund may be paid from the fund. The
application may be filed anytime within the five-year investment
period.
For purposes of this section `major tourism or recreation facility'
means an establishment or predetermined formally `designated
development area' to which an aggregate investment in land and new
capital assets or in refurbishing or expanding an existing facility of at
least twenty million dollars is made within a five-year period and which
is used for a theme park, an amusement park, an historical, educational,
or trade museum, a botanical or zoological garden, an aquarium, a
cultural center, a theater, a motion picture production studio, a
convention center, an arena, a coliseum, an auditorium, a golf course, or
a spectator or participatory sports facility and similar establishments.
Secondary support facilities such as hotels, food, and retail services
located within the establishment or the designated development area or
immediately adjacent to and which directly support the primary `tourism
or recreation facility' are included as part of the aggregate investment of
at least twenty million dollars for the primary tourism or recreation
facility. One or more such establishments may be included within a
designated development area as part of the aggregate investment of at
least twenty million dollars. The aggregate investment totaling at least
twenty million dollars may include private or public sector funds or a
combination of private and public sector funds. A designated
development area includes, but is not limited to, a downtown or
waterfront redevelopment area, a local historic district, redevelopment of
a closed military facility, or a newly designated economic development
site that includes tourism or recreation facilities as described in this
section. For those facilities opening before January 1, 1996, a designated
development area and its boundaries must be determined within three
years of the opening of the new or expanded facilities by municipal
ordinance, if located in a municipality, and otherwise by county
ordinance, if located in an unincorporated county area, or by more than
one ordinance by municipal or county governments, or both, if it
embraces areas within two or more governmental jurisdictions. For those
facilities opening after December 31, 1995, a designated development
area and its boundaries must be determined within one year of the
opening of the new or expanded facilities, the total aggregate amount of
a designated development area within any municipality or county may
not exceed five percent of the total acreage of the municipality or
unincorporated county area. One or more designated development areas
may be located within a municipality or unincorporated county area. The
total acreage for all designated development areas within a municipality
must not exceed ten percent of the total acreage of the municipality and
the total acreage for all designated development areas within
unincorporated areas of a county must not exceed ten percent of the total
acreage of the county's unincorporated areas. The acreage limitations for
municipalities and unincorporated county areas do not apply to
designated development areas located on a closed federal military facility
as defined by the Base Realignment and Closure Commission, and the
acreage for a designated development area on a closed military facility
are in addition to the acreage limitations applicable to any other
designated development areas within the same municipality or
unincorporated county area. Two or more municipal or county
governments or combination of these governments may adopt ordinances
to designate a `designated development area' embracing contiguous lands
within two or more of the involved county-municipal entities, but the
acreage for each involved municipality or county must not exceed five
percent of the total acreage in each involved municipality or
unincorporated county area. For purposes of this section `additional
infrastructure improvement' means a publicly-owned road or pedestrian
access way, a right-of-way, a bridge, a water and sewer facility, an
electric or a gas facility, a landfill or waste treatment facility, a hospital
or other medical facility, a fire station, a school, a transportation facility,
a telephone or communications system, or similar infrastructure facility
and facilities ancillary thereto including, but not limited to, a
publicly-owned tourism or recreation facility which generated the
admissions tax from which funds were paid to a county, municipality, or
special purpose district.
If an existing establishment or designated development area which
includes facilities that generate admissions tax revenues is expanded with
an aggregate investment in new land and new capital assets of at least
twenty million dollars, the amount of admissions tax revenues to be
returned to local governments for a fifteen-year period under the terms of
this section is the amount in excess of the annual admissions tax revenues
previously generated by the establishment or establishments within the
development area. This amount is determined by using the average of
the admissions tax revenues generated during the two fiscal years
preceding the first year of new and expanded land and capital assets of at
least twenty million dollars."
Annual depreciation
SECTION 12A. Item 26 of the schedule contained in the first paragraph
of Section 12-37-930 of the 1976 Code is amended to read:
"26. Rubber Products........ 15%."
Depreciation floor
SECTION 12B. The penultimate paragraph of Section 12-37-930 of the
1976 Code, as amended by Act 32 of 1995, is further amended to
read:
"In no event may the original cost be reduced by more than
eighty percent, except this limit is ninety percent for:
(1) custom molds and dies used in the conduct of manufacturing
electronic interconnection component assembly devices for computers and
computer peripherals; and
(2) equipment used in the manufacture of tires by manufacturers
who employ more than five thousand employees in this State and have
over one billion dollars in capital investment in this State. Capital
investment will be based upon the gross cost of assets in South Carolina
as shown on the manufacturer's property tax and fee-in-lieu of property
tax filings. In the year of acquisition, depreciation is allowed as if the
property were owned for the full year. The term `original cost' means
gross capitalized cost, including property on which the taxpayer made the
election allowed pursuant to Section 179 of the Internal Revenue Code of
1986, as shown by the taxpayer's records for income tax purposes. For
purposes of this paragraph, custom molds and dies used in the conduct of
manufacturing electronic interconnection component assembly devices for
computers and computer peripherals are molds and dies designed,
produced, and conditioned to the special order of a
manufacturer."
Stipulated date
SECTION 13. As used in the amendments to Section 12-10-70(1)(b)
contained in this act, the phrase "stipulated date" means the
general effective date of this act and the Code Commissioner in the
preparation of the cumulative supplement to the Code of Laws of South
Carolina, 1976, is directed to delete the phrase "stipulated
date" and insert the calendar date that is the general effective date
of this act.
Time effective
SECTION 14. Except where otherwise stated, this act takes effect upon
approval by the Governor.
Approved the 12th day of February, 1996. |