H*3885(Rat #0152, Act #0124 of 2005)  General Bill, By Hagood, Scarborough, 
Limehouse, Anderson, Dantzler, Cotty, Brady, Taylor, Perry, R. Brown, 
Cobb-Hunter, Harrell and Chellis
 AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION
 12-6-3375 SO AS TO PROVIDE EITHER AN ADDITIONAL JOBS TAX CREDIT OR AN
 ADDITIONAL INVESTMENT TAX CREDIT FOR COMPANIES USING PORT FACILITIES LOCATED
 IN THIS STATE WHICH INCREASE THEIR BASE PORT CARGO VOLUME AT THESE FACILITIES
 BY A MINIMUM OF FIVE PERCENT OVER 2005 TOTALS AND TO PROVIDE PROCEDURES
 NECESSARY TO IMPLEMENT AND ALLOCATE THESE TAX CREDITS AND TO RECALCULATE BASE
 PORT CARGO VOLUME. - ratified title

   04/07/05  House  Introduced and read first time HJ-4
   04/07/05  House  Referred to Committee on Ways and Means HJ-5
   04/07/05  House  Member(s) request name added as sponsor: Dantzler
   04/13/05  House  Member(s) request name added as sponsor: Cotty, Brady
   04/14/05  House  Member(s) request name added as sponsor: Taylor,
                     Perry, R.Brown, Cobb-Hunter
   04/19/05  House  Member(s) request name added as sponsor: Harrell
   04/19/05  House  Committee report: Favorable with amendment Ways
                     and Means HJ-49
   04/25/05         Scrivener's error corrected
   04/26/05  House  Member(s) request name added as sponsor: Chellis
   04/26/05  House  Amended HJ-42
   04/26/05  House  Read second time HJ-44
   04/27/05  House  Read third time and sent to Senate HJ-8
   04/27/05         Scrivener's error corrected
   04/28/05  Senate Introduced and read first time SJ-16
   04/28/05  Senate Referred to Committee on Finance SJ-16
   05/18/05  Senate Committee report: Favorable with amendment
                     Finance SJ-31
   05/25/05  Senate Amended SJ-75
   05/25/05  Senate Read second time SJ-75
   05/25/05         Scrivener's error corrected
   05/26/05  Senate Read third time and returned to House with
                     amendments SJ-305
   05/31/05  House  Concurred in Senate amendment and enrolled HJ-75
   06/01/05         Ratified R 152
   06/03/05         Signed By Governor
   06/09/05         Copies available
   06/09/05         Effective date 06/03/05
   06/16/05         Act No. 124

(A124, R152, H3885)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3375 SO AS TO PROVIDE EITHER AN ADDITIONAL JOBS TAX CREDIT OR AN ADDITIONAL INVESTMENT TAX CREDIT FOR COMPANIES USING PORT FACILITIES LOCATED IN THIS STATE WHICH INCREASE THEIR BASE PORT CARGO VOLUME AT THESE FACILITIES BY A MINIMUM OF FIVE PERCENT OVER 2005 TOTALS AND TO PROVIDE PROCEDURES NECESSARY TO IMPLEMENT AND ALLOCATE THESE TAX CREDITS AND TO RECALCULATE BASE PORT CARGO VOLUME.

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

Tax credits

SECTION    1.    Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-3375.    (A)    Companies primarily engaged in manufacturing, warehousing, or distribution, which use port facilities in this State and which increase their base port cargo volume at these facilities by a minimum of five percent over 2005 totals, are eligible to take either a five hundred dollar additional tax credit for each new full-time job created, or an additional two percent investment tax credit for investments in new facilities, plants, and equipment. Companies may also take an additional two hundred fifty dollar tax credit for each new full-time job created, or an additional one percent investment tax credit for each incremental two and one-half percent increase in port cargo volume which is over and above the minimum five percent increase in base volume. An annual maximum of one thousand five hundred dollars per job or a six percent investment tax credit applies in regard to the tax credits authorized by this section. The credit may only be claimed by the manufacturer, warehouse, or distribution company which owns the cargo at the time the port facilities are used.

(B)    Base year port cargo volume must be at least seventy-five net tons of noncontainerized cargo or ten loaded TEUs for a company to be eligible for the credits provided for in this section.

(C)    For every year in which a taxpayer claims the credit, the taxpayer shall attach a schedule to the taxpayer's state income tax return, which shall set forth the following information, as a minimum, in addition to the information required by law and by the Department of Revenue:

(1)    a description of how the base year port traffic and the increase in port traffic was determined;

(2)    the amount of the base year port traffic;

(3)    the amount of the increase in port traffic for the taxable year, including information which demonstrates an increase in port traffic in excess of the minimum amount required to claim the tax credits under this section;

(4)    any tax credit utilized by the taxpayer in prior years;

(5)    the amount of tax credit carried over from prior years;

(6)    the amount of tax credit utilized by the taxpayer in the current taxable year; and

(7)    the amount of tax credit to be carried over to subsequent tax years.

(D)    As used in this section:

(1)    'TEU' means twenty-foot equivalent unit.

(2)    'Base port cargo volume' means the total amount of net tons of noncontainerized or twenty-foot equivalent units (TEUs) of product actually transported by way of a waterborne ship through a port facility during the period from January 1, 2005, through December 31, 2005. For companies who locate in South Carolina after the effective date of this section, their base cargo volume will be measured by their first calendar year as long as they meet the requirements of seventy-five net tons of noncontainerized cargo or ten loaded TEUs. Base port cargo volume must be recalculated during the period from January 1, 2015 to December 31, 2015 and every tenth year thereafter.

(3)    'Port facility' means any publicly or privately owned facility located within this State through which cargo is transported by way of a waterborne ship or vehicle to or from destinations outside this State and which handles cargo owned by third parties in addition to cargo owned by the port facility's owner.

(4)    'Port traffic' means the total amount of net tons of noncontainerized cargo or containers measured in twenty-foot equivalent units (TEUs) of cargo transported by way of a waterborne ship or vehicle through a port facility.

(5)    'New job' has the meaning defined in Section 12-6-3360(M)(3).

(6)    'Full-time' has the meaning defined in Section 12-6-3360(M)(4).

(7)    'Warehousing facility' has the meaning defined in Section 12-6-3360(M)(7).

(8)    'Distribution facility' has the meaning defined in Section 12-6-3360(M)(8).

(E)    Job tax credit provisions and procedures contained in Section 12-6-3360 and investment tax credit provisions and procedures contained in Section 12-14-60 apply to the tax credits provided by this section mutatis mutandi in the manner determined by the Department of Revenue.

(F)    A company which increases its base port cargo volume at Ports Authority facilities may take either the additional job tax credits or the additional investment tax credits as provided by this section, but not both.

(G)    The maximum amount of tax credits allowed to all qualifying taxpayers pursuant to this section may not exceed eight million dollars per calendar year. Tax credits allowed shall be allocated based on the date an application is received by the Coordinating Council for Economic Development.

The Coordinating Council has sole discretion in determining eligibility for additional credits provided by this section.

An application must be submitted to the Coordinating Council with the same information as required by subsection (C), and any other information required by the Coordinating Council."

Time effective

SECTION    2.    This act takes effect upon approval by the Governor.

Ratified the 1st day of June, 2005.

Approved the 3rd day of June, 2005.