South Carolina General Assembly
110th Session, 1993-1994

Bill 45


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Introducing Body:               Senate
Bill Number:                    45
Primary Sponsor:                Passailaigue
Committee Number:               06
Type of Legislation:            GB
Subject:                        Income tax credit for
                                employee of closed military
                                base
Residing Body:                  Senate
Current Committee:              Finance
Computer Document Number:       S.45
Introduced Date:                19930112
Last History Body:              Senate
Last History Date:              19930112
Last History Type:              Introduced, read first time,
                                referred to Committee
Scope of Legislation:           Statewide
All Sponsors:                   Passailaigue
                                Rose
Type of Legislation:            General Bill



History


Bill  Body    Date          Action Description              CMN  Leg Involved
____  ______  ____________  ______________________________  ___  ____________

45    Senate  19930112      Introduced, read first time,    06
                            referred to Committee

View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND ARTICLE 10, CHAPTER 7, TITLE 12, 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; or

(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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