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Indicates Matter Stricken
Indicates New Matter
April 13, 2000
S. Printed 4/13/00--S. [SEC 4/14/00 2:26 PM]
Read the first time March 2, 2000.
TO AMEND CHAPTER 6, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE INCOME TAX, BY ADDING SECTION 12-6-3365 SO AS TO PROVIDE FOR A MORATORIUM ON STATE CORPORATE INCOME TAXES FOR A TAXPAYER WHO CREATES AND MAINTAINS FULL-TIME NEW JOBS IN A COUNTY QUALIFYING BY REASON OF HIGH UNEMPLOYMENT OR LOW PER CAPITA INCOME, TO ESTABLISH CRITERIA FOR THE NUMBER AND TYPE OF FULL-TIME NEW JOBS REQUIRED AND FOR THE DETERMINATION OF QUALIFYING COUNTIES, AND TO PROVIDE FOR THE LENGTH OF THE MORATORIUM; AND TO AMEND SECTION 12-6-3360, AS AMENDED, RELATING TO JOB TAX CREDIT, SO AS TO PROVIDE THAT TAX CREDITS MAY BE CLAIMED, OR UNUSED TAX CREDITS CARRIED FORWARD, AFTER EXPIRATION OF THE MORATORIUM PERIOD; AND TO PROVIDE THAT A TAXPAYER MAY QUALIFY FOR THE MORATORIUM BEGINNING IN TAX YEARS AFTER 1997, WITH THE REPEAL OF THESE PROVISIONS ON JULY 1, 2005, NOT AFFECTING A MORATORIUM THEN IN EFFECT.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3365. (A) A taxpayer creating and maintaining at least one hundred full-time new jobs, as defined in Section 12-6-3360(M), at a facility of a type identified in Section 12-6-3360(M) is allowed a moratorium on state corporate income taxes imposed pursuant to Section 12-6-530 for the ten taxable years beginning the first full taxable year after the taxpayer qualifies and ending either ten years from that year or the year when the taxpayer's number of full-time new jobs falls below one hundred, whichever is earlier.
(B) To qualify for the moratorium pursuant to subsection (A), a taxpayer must create at least one hundred full-time new jobs at a facility in a county:
(1) with an average annual unemployment rate of at least twice the state average during each of the last two completed calendar years, based on the most recent unemployment rates available, or that is one of the three lowest per capita income counties, based on the average of the three most recent years of available average per capita income data; and
(2) in which at least ninety percent of the taxpayer's total investment in this State is located.
(C) The moratorium applies to that portion of the taxpayer's corporate income tax that represents the ratio of the company's new investment in the qualifying county to its total investment in this State.
(D) The department shall prescribe certification procedures to ensure that the taxpayer may claim the moratorium in future years even if a particular county is removed from the list of moratorium counties.
(E) If the taxpayer creates and maintains at least two hundred full-time new jobs within five years from the date the taxpayer creates the first full-time new job at the facility, the moratorium period is fifteen taxable years, beginning the first full taxable year after the taxpayer qualifies and ending either fifteen years from that year or the year when the taxpayer's number of full-time new jobs falls below two hundred, whichever is earlier.
(F) The taxpayer must create the one hundred full-time new jobs within five years from the date it creates the first full-time new job, except that the taxpayer must have hired its first full-time new employee by July 1, 2005, to be eligible for either the ten-year or fifteen-year moratorium."
SECTION 2. Section 12-6-3360(H) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:
"(H) A credit claimed under this section but not used in a taxable year may be carried forward for fifteen years from the taxable year in which the credit is earned by the taxpayer. Credits which are carried forward must be used in the order earned and before jobs credits claimed in the current year. A taxpayer who earns credits allowed by this section and who also is eligible for the moratorium provided in Section 12-6-3365 may claim the credits and may carry forward unused credits beginning after the moratorium period expires."
SECTION 3. Section 12-10-30 of the 1976 Code is amended to read:
"Section 12-10-30. As used in this chapter:
(1) `Council' means the Advisory Coordinating Council for Economic Development.
(2) `Department' means the South Carolina Department of Revenue.
(3) `Employee' means an employee of the qualifying business who works full time within the enterprise zone.
(4) `Hospitality industry' means those businesses and establishments which are required to remit admissions taxes pursuant to Chapter 21 of Title 12 and accommodations taxes pursuant to Chapter 36 of Title 12.
(4) (5) `Manufacturing' means engagement primarily in an activity or activities listed under the Standard Industrial Classification (SIC) Codes 20 through 39 as published in the Office of Management and Budget's Standard Industrial Classification Manual.
(5) (6) `New job' means a job created or reinstated, as defined in Section 12-6-3360(M)(3).
(7) `Production employee' means an employee who is engaged in the actual making of tangible personal property, who is directly involved in the manufacturing, processing operation or distribution process, or who is employed in the hospitality industry. These employees must be full time and entitled to full benefits, including health care.
(6) (8) `Qualifying business' means an employer that meets the requirements of Section 12-10-50 and other applicable requirements of this chapter and, where required under Section 12-10-50, enters into a revitalization agreement with the council to undertake a project under the provisions of this chapter.
(7) (9) `Project' means an investment for one or more purposes in Section 12-10-80(B) needed for a qualifying business to locate, remain, or expand in an enterprise zone and otherwise fulfill the requirements of this chapter.
(8) (10) Reserved.
(9) (11) `Withholding' means employee withholding under Chapter 9 of this title."
SECTION 4. Section 12-10-50(1) of the 1976 Code is amended to read:
"(1) it must be primarily engaged in the hospitality industry or a business of the type identified in Section 12-6-3360;"
SECTION 5. This act takes effect upon approval by the Governor and applies to tax years beginning after 1999. Further, Section 12-6-3365 of the 1976 Code, as added by this act, is repealed effective July 1, 2005, except that the repeal does not affect any moratorium in effect on that date.
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