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Bill 314

                    Current Status

Bill Number:                      314
Type of Legislation:              General Bill GB
Introducing Body:                 Senate
Introduced Date:                  19990114
Primary Sponsor:                  Passailaigue
All Sponsors:                     Passailaigue
Drafted Document Number:          l:\s-res\elp\020rese.efd.doc
Residing Body:                    Senate
Current Committee:                Finance Committee 06 SF
Subject:                          Income tax credits, certain research 
                                  activities; Taxation


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
Senate  19990114  Introduced, read first time,           06 SF
                  referred to Committee


                             Versions of This Bill

TO AMEND ARTICLE 25, CHAPTER 6, TITLE 12 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, ADDING SECTION 12-6-3520, SO AS TO PROVIDE FOR AN INCOME TAX CREDIT TO TAXPAYERS EQUAL TO FIVE PERCENT OF THE STATE'S APPORTIONED SHARE OF THE TAXPAYER'S EXPENDITURES FOR INCREASING RESEARCH ACTIVITIES.

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 12-6-3520. (A) A taxpayer that claims for the taxable year a federal income tax credit under Section 41(a) of the Internal Revenue Code for increasing research activities is allowed a credit equal to five percent of the state's apportioned share of the taxpayer's expenditures for increasing research activities. The state's apportioned share of a taxpayer's expenditures for increasing research activities is the excess of the taxpayer's qualified research expenses for the taxable year over the base amount, as determined under Section 41 of the Internal Revenue Code, multiplied by a percentage equal to the ratio of the taxpayer's qualified research expenses in this State for the taxable year to the taxpayer's total qualified research expenses for the taxable year.

(B) A taxpayer that claims the alternative incremental credit under Section 41(c)(4) of the Internal Revenue Code for increasing research activities is allowed a credit equal to twenty-five percent of the state's apportioned share of the federal credit claimed. The state's apportioned share of the federal credit claimed is the amount of the alternative incremental credit the taxpayer claimed under Section 41(c)(4) of the Internal Revenue Code for the taxable year multiplied by a percentage equal to the ratio of the taxpayer's qualified research expenses in this State for the taxable year to the taxpayer's total qualified research expenses for the taxable year. For the purpose of this subsection, the amount of the alternative incremental credit claimed by a taxpayer is determined without regard to any reduction elected under Section 280C(c) of the Internal Revenue Code.

(C) As used in this section, the terms 'qualified research expenses' and `base amount' have the meaning provided in Section 41 of the Internal Revenue Code."

SECTION 2. Upon approval by the Governor, this act takes effect for taxable years beginning in 1999.

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