Current Status Bill Number:549 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19970319 Primary Sponsor:Matthews All Sponsors:Matthews, Patterson and Washington Drafted Document Number:res1325.jwm Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Income tax credit, donations to college or university where low income students majority of population
Body Date Action Description Com Leg Involved
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Senate 19970319 Introduced, read first time, 06 SF
referred to Committee
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TO AMEND ARTICLE 10, CHAPTER 7, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TAX CREDITS, BY ADDING SECTION 12-7-1265 SO AS TO PROVIDE STATE TAX CREDITS FOR DONATIONS TO COLLEGES AND UNIVERSITIES WHERE LOW INCOME STUDENTS COMPRISE FIFTY PERCENT OR MORE OF THE TOTAL STUDENT POPULATION AND TO DEFINE "LOW INCOME STUDENT".
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 12-7-1265. (A) A taxpayer may claim as a credit against his state income tax, bank tax, or premium tax liability fifty percent of all amounts donated to institutions of higher learning where fifty percent or more of the total student body population is comprised of low income students.
(B) The total amount of credits allowed under this section may not exceed in the aggregate fifteen million dollars for all taxpayers and all taxable years. The credit must be allowed to taxpayers in the order of the time of making of the donation to the institution meeting the criteria of subsection (A).
(C) If the amount of the credit determined under subsection (A) exceeds the taxpayer's state income tax liability for the applicable taxable year, then the taxpayer may carry the excess over to the immediately succeeding taxable years. However, the credit carryover may not be used for any taxable year that begins on or after ten years from the date of the initial donation. The amount of the credit carryover from a taxable year must be reduced to the extent that the carryover is used by the taxpayer to obtain a credit under this section for any subsequent taxable year.
(D) Notwithstanding the provisions of subsections (A), (B), and (C) above, if on April 1, 1998, or as soon thereafter as the Department of Revenue and Taxation may determine, the total amount of tax credits which may be claimed by all taxpayers exceeds the total amount of tax credits authorized by this section, then the credits must be determined on a pro rata basis. For purposes of this subsection, any institution of higher learning for which a donation may be claimed as a tax credit under this section must report all donations made prior to April 1, 1998, to the Department of Revenue and Taxation, by April 1, 1998, which shall, as soon as reasonably possible, inform all institutions of higher learning of the total of all donations to all institutions as of April 1, 1998.
(E) To receive the credit provided by this section, a taxpayer shall:
(1) claim the credit on the taxpayer's annual state income or premium tax return in the manner prescribed by the Department of Revenue and Taxation; and
(2) file with the Department of Revenue and Taxation and with the taxpayer's annual state income or premium tax return a copy of the form issued by the institution of higher learning as to the donation by the taxpayer.
(F) The institutions shall complete forms prescribed by the Department of Revenue and Taxation which must show as to each donation to an institution:
(1) the name, address, and identification number of the taxpayer who made the donation; and
(2) the amount donated by the taxpayer.
(G) No taxpayer may claim the tax credit provided in this section unless the institution to which the donation is made qualifies at the time the donation is made.
(H) A taxpayer may transfer or assign the tax credit provided in this section, except that for purposes of any time period within which an act must occur under this section, such transfer or assignment shall relate back to the time of original investment made by the transferor or assignor.
(I) Notwithstanding any other provision of law, the total amount of credits which may be allowed by the Department of Revenue and Taxation shall not exceed seven million dollars, respectively, for the fiscal years 1998-99 and 1999-2000. Any credit which is disallowed because of this subsection may be carried forward as provided in this section.
(J) For the purpose of this section, 'low income student' means a student who meets the criteria to qualify for the pell grant program."
SECTION 2. This section takes effect upon approval by the Governor, except that Section 12-7-1265(C) applies to tax years beginning after 1998.