H 4551 General Bill, By W.D. Smith, Scarborough, McLeod and Knotts
 A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, 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 OF THE 1976 CODE, THE BROWNFIELD VOLUNTARY CLEANUP ACT, TO
 PROVIDE THE AMOUNT OF THE CREDIT, THOSE ELIGIBLE TO RECEIVE IT, AND THE
 PROCEDURES NECESSARY TO CLAIM THE CREDIT.

   01/22/02  House  Introduced and read first time HJ-11
   01/22/02  House  Referred to Committee on Ways and Means HJ-12
   02/14/02  House  Recalled from Committee on Ways and Means HJ-26
   02/14/02  House  Referred to Committee on Agriculture, Natural
                     Resources and Environmental Affairs HJ-26
   02/14/02  House  Member(s) request name added as sponsor: McLeod
   02/20/02  House  Member(s) request name added as sponsor: Knotts

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, 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 OF THE 1976 CODE, THE BROWNFIELD VOLUNTARY CLEANUP ACT, TO PROVIDE THE AMOUNT OF THE CREDIT, THOSE ELIGIBLE TO RECEIVE IT, AND THE PROCEDURES NECESSARY TO CLAIM THE CREDIT.

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

SECTION    1.    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 clean-up 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 clean-up costs.

    (C)    The taxpayer is allowed an additional ten percent of the total clean-up 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 clean-up 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 clean-up 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."

SECTION    2.    This act takes effect upon approval by the Governor and applies for eligible clean-up expenses incurred after 2001.