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Current Status Bill Number:View additional legislative information at the LPITS web site.1333 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:20020605 Primary Sponsor:Reese All Sponsors:Reese Drafted Document Number:l:\council\bills\bbm\9228htc02.doc Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Property transferred pursuant to stock options, additional income tax applies under certain conditions History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ Senate 20020605 Introduced, read first time, 06 SF referred to Committee Versions of This Bill
TO AMEND SECTION 12-6-1130, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MODIFICATIONS TO DEDUCTIONS PROVIDED IN THE INTERNAL REVENUE CODE FOR PURPOSES OF THE SOUTH CAROLINA INCOME TAX ACT, SO AS TO REQUIRE AN ADDITION TO SOUTH CAROLINA TAXABLE INCOME FOR ANY AMOUNT DEDUCTED FOR FEDERAL INCOME TAX PURPOSES WITH RESPECT TO PROPERTY TRANSFERRED PURSUANT TO STOCK OPTIONS WHICH EXCEEDS THE AMOUNT THE TAXPAYER TREATED AS AN EXPENSE FOR THE PURPOSE OF ASCERTAINING INCOME, PROFIT, OR LOSS IN A REPORT OR STATEMENT TO SHAREHOLDERS, PARTNERS, OTHER PROPRIETORS, OR BENEFICIARIES AND TO REQUIRE THE DIRECTOR OF THE SOUTH CAROLINA DEPARTMENT OF REVENUE TO PRESCRIBE PROCEDURES FOR THE APPLICATION OF THIS PROVISION WHERE THE STOCK OPTION IS GRANTED BY A PARENT OR SUBSIDIARY CORPORATION OF THE EMPLOYER CORPORATION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-6-1130 of the 1976 Code is amended by adding at the end:
"(12) The deduction allowed pursuant to Internal Revenue Code Section 83(h) for property transferred in connection with a stock option is not allowed as a deduction from South Carolina taxable income to the extent the federal deduction exceeds the amount the taxpayer treated as an expense for the purpose of ascertaining income, profit, or loss in a report or statement to shareholders, partners, or other proprietors or beneficiaries. The director of the department shall prescribe procedures for the application of this item in cases where the stock option is granted by a parent or subsidiary corporation, within the meaning of Internal Revenue Code Section 424, of the employer corporation."
SECTION 2. Upon approval by the Governor, this act is effective for taxable years beginning after 2002.
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