Current Status Bill Number:3637 Ratification Number:234 Act Number:143 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19970312 Primary Sponsor:R. Smith All Sponsors:R. Smith, Mason, Sharpe, Clyburn, Beck, Felder, Kelley and Spearman Drafted Document Number:dka\4197mm.97 Companion Bill Number:562 Date Bill Passed both Bodies:19970605 Date of Last Amendment:19970603 Governor's Action:S Date of Governor's Action:19970613 Subject:Job tax credit, annual; calculation of new and additional full-time jobs; Taxation, income; Businesses and Corporations
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
------ 19970714 Act No. A143
------ 19970613 Signed by Governor
------ 19970609 Ratified R234
House 19970605 Concurred in Senate amendment,
enrolled for ratification
Senate 19970603 Amended, read third time,
returned to House with amendment
Senate 19970522 Read second time, ordered to
third reading with notice of
general amendments
Senate 19970522 Committee amendment adopted
Senate 19970521 Committee report: Favorable with 06 SF
amendment
Senate 19970501 Introduced, read first time, 06 SF
referred to Committee
House 19970430 Read third time, sent to Senate
House 19970429 Amended, read second time
House 19970424 Committee report: Favorable with 30 HWM
amendment
House 19970312 Introduced, read first time, 30 HWM
referred to Committee
View additional legislative information at the LPITS web site.
(A143, R234, H3637)
AN ACT TO AMEND SECTION 12-6-3360, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CALCULATION OF NEW AND ADDITIONAL NEW FULL-TIME JOBS FOR PURPOSES OF AN ANNUAL JOB TAX CREDIT, SO AS TO PROVIDE FOR AND PLACE A TIME LIMIT ON A TAXPAYER ELECTION FOR DETERMINATION OF NEW AND ADDITIONAL NEW FULL-TIME JOBS AND TO DEFINE "SINGLE SITE" AND TO FURTHER DEFINE "NEW JOB".
Be it enacted by the General Assembly of the State of South Carolina:
Creates taxpayer election for annual job tax credit
SECTION 1. Section 12-6-3360(F) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:
"(F) (1) The number of new and additional new full-time jobs is determined by comparing the monthly average number of full-time employees subject to South Carolina income tax withholding in the applicable county for the taxable year with the monthly average in the prior taxable year. For purposes of calculating the monthly average number of full-time employees in the first year of operation in this State, a taxpayer may use the actual months in operation or a full twelve-month period. If a taxpayer's business is in operation for less than twelve months a year, the number of new and additional new full-time jobs is determined using the monthly average for the months the business is in operation.
(2)(a) A taxpayer who makes a capital investment of at least fifty million dollars at a single site within a three-year period may elect to have the number of new and additional new full-time jobs determined by comparing the monthly average number of full-time jobs subject to South Carolina income tax withholding at the site for the taxable year with the monthly average for the prior taxable year.
(b) For purposes of this item, 'single site' means a stand-alone building whether or not several stand-alone buildings are located in one geographical location.
(c) The calculation of new and additional jobs provided for in this item is allowed for only a five-year period commencing in the year in which the fifty million dollars of capital investment is completed.
(d) For purposes of this subsection a 'new job' does not include a job transferred from one site to another site by the taxpayer or a related person. A related person includes any entity or person that bears a relationship to the taxpayer as set forth in Section 267 of the Internal Revenue Code. However, this exclusion of a new job created by a job transferred from one site to another site does not extend to a job created at a new or expanded facility located in a county in which is located an 'applicable federal facility' as defined in Section 12-6-3450(A)(1)(b)."
Excludes certain "new jobs"
SECTION 2. Section 12-6-3360(M)(3) of the 1976 Code is amended to read:
"(3) 'New job' means a job created in this State at the time a new facility or an expansion is initially staffed. The term does not include a job created when an employee is shifted from an existing location in this State to a new or expanded facility whether the transferred job is from, or to, a facility of the taxpayer or a related person. A related person shall include any entity or person that bears a relationship to the taxpayer as set forth in Section 267 of the Internal Revenue Code. However, this exclusion of a new job created by employee shifting does not extend to a job created at a new or expanded facility located in a county in which is located an 'applicable federal facility' as defined in Section 12-6-3450(A)(1)(b). The term 'new job' also includes existing jobs at a facility of an employer which are reinstated after the employer has rebuilt the facility due to its destruction by accidental fire, natural disaster, or act of God. Destruction for purposes of this provision means that more than fifty percent of the facility was destroyed. The year of reinstatement is considered to be the year of creation of the job. All such jobs so reinstated qualify for the credit under this section, and no comparison is required to be made between the number of full-time jobs of the employer in the taxable year and the number of full-time jobs of the employer with the corresponding period of the prior taxable year."
Time effective
SECTION 3. This act takes effect upon approval by the Governor for taxable years beginning with 1997.
Approved the 13th day of June, 1997.