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COMMITTEE REPORT
May 8, 2002
H. 4548
Introduced by Reps. W.D. Smith, Scarborough, McLeod, Knotts and Owens
S. Printed 5/8/02--S.
Read the first time April 11, 2002.
To whom was referred a Bill (H. 4548) to amend Sections 4-12-30, 4-29-67, and 12-44-30, all as amended, Code of Laws of South Carolina, 1976, relating to the various fees, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
HUGH K. LEATHERMAN, SR. for Committee.
TO AMEND SECTIONS 4-12-30, 4-29-67, AND 12-44-30, ALL AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE VARIOUS FEES IN LIEU OF PROPERTY TAXES AND THE APPLICABLE INVESTMENT THRESHOLDS FOR ELIGIBILITY FOR THESE FEES, SO AS TO PROVIDE THAT THERE MAY BE INCLUDED TO MEET THE MINIMUM INVESTMENT THRESHOLD REQUIREMENT AMOUNTS EXPENDED FOR COSTS INCURRED FOR VOLUNTARY CLEANUP ACTIVITY OF A NONRESPONSIBLE PARTY PURSUANT TO ARTICLE 7, CHAPTER 56, TITLE 44 OF THE 1976 CODE, THE BROWNFIELDS VOLUNTARY CLEANUP PROGRAM AND TO PROVIDE THAT AT LEAST ONE MILLION DOLLARS OF CLEANUP COSTS INCURRED QUALIFY THE PROJECT FOR THE FEE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 4-12-30(B)(3) of the 1976 Code, as last amended by Act 100 of 1999, is further amended to read:
"(3) The minimum level of investment must be at least five million dollars and must be invested within the time period provided in subsection (C)(2). If a county has an average annual unemployment rate of at least twice the state average during each of the last two calendar years, the minimum level of investment is one million dollars. Investments may include amounts expended by a sponsor or sponsor affiliate as a nonresponsible party in a voluntary cleanup contract on the property pursuant to Article 7, Chapter 56 of Title 44, the Brownfields Voluntary Cleanup Program, if the Department of Health and Environmental Control has issued a certificate of completion for the cleanup. If these amounts equal at least one million dollars, the investment threshold requirement of this chapter is deemed to have been met."
SECTION 2. Section 4-29-67(B) of the 1976 Code, as last amended by Act 89 of 2001, is further amended by adding at the end:
"(5) Investment for all purposes of this section may include amounts expended by a sponsor or sponsor affiliate as a nonresponsible party in a voluntary cleanup contract on the property pursuant to Article 7, Chapter 56 of Title 44, the Brownfields Voluntary Cleanup Program if the Department of Health and Environmental Control certifies completion of the cleanup. If these amounts equal at least one million dollars, the investment threshold requirement of this chapter is deemed to have been met."
SECTION 3. Section 12-44-30(14) of the 1976 Code is amended to read:
"(14) 'Minimum investment' means a project which results in a total investment by a sponsor of not less than five million dollars within the investment period. If a county has an average annual unemployment rate of at least twice the state average during each of the last two completed calendar years, the minimum investment is one million dollars. For all purposes of this chapter, the minimum investment may include amounts expended by a sponsor or sponsor affiliate as a nonresponsible party in a voluntary cleanup contract on the property pursuant to Article 7, Chapter 56 of Title 44, the Brownfields Voluntary Cleanup Program if the Department of Health and Environmental Control certifies completion of the cleanup. If these amounts equal at least one million dollars, the investment threshold requirement of this chapter is deemed to have been met."
SECTION 4. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3550. (A) A taxpayer is allowed a credit against taxes due under Section 12-6-530 for costs of voluntary clean-up activity by a nonresponsible party pursuant to Article 7, Chapter 56 of Title 44, the Brownfields Voluntary Cleanup Program, in the manner provided in this section.
(B) For expenses paid or accrued by the taxpayer in cleaning up a site under the applicable article, the credit is equal to fifty percent of the expenses of the cleanup or cash contributions to the cleanup but not more than fifty thousand dollars in a taxable year. The credit is available only for site rehabilitation conducted during the taxable year in which the tax credit application is submitted. Any unused credit, up to a total of one hundred thousand dollars, may be carried forward five years. Multiple taxpayers working jointly to clean up a single site are allowed the credit in the same proportion as their contribution to payment of clean-up costs.
(C) The taxpayer is allowed an additional ten percent of the total clean-up costs, not to exceed fifty thousand dollars, in the final year of clean up as evidenced by the Department of Health and Environmental Control issuing a certificate of completion for that site.
(D) To be eligible for the tax credit the applicant must have entered into a nonresponsible party voluntary clean-up contract with the Department of Health and Environmental Control (DHEC) pursuant to Section 44-56-750.
(E) To obtain the tax credit certificate, an applicant must annually file an application for certification, which must be received by DHEC by December thirty-first. The applicant shall provide all pertinent information requested on the tax credit application form including, at a minimum, the name and address of the applicant and the address and tracking identification of the eligible site. Along with the application form, the applicant shall submit the following:
(1) copies of contracts and documentation of contract negotiations, accounts, invoices, sales tickets, or other payment records for purchases, sales, leases, or other transactions involving the actual costs incurred for that taxable year related to site rehabilitation under the voluntary clean-up contract; and
(2) proof that the documentation submitted pursuant to item (1) has been reviewed and verified by an independent certified public accountant who must attest to the accuracy and validity of the costs incurred and paid by conducting an independent review of the data presented by the applicant. A copy of the accountant's report must be submitted to DHEC with the tax credit application.
(F) If upon review of the tax credit application and any supplemental documentation submitted by each applicant, DHEC determines that the applicant has met all requirements for the tax credit, it shall issue a tax credit certificate before April first. The applicant shall pay the administrative costs of this review pursuant to the provisions of Section 44-56-750(D).
(G) DHEC may prescribe the necessary forms required to claim the credit under this section and to provide the administrative guidelines and procedures required to administer this section.
(H) DHEC may revoke or modify any written decision granting eligibility for partial tax credits under this section if it is discovered that the tax credit applicant submitted any false statement, representation, or certification in any application, record, report, plan, or other document filed in an attempt to receive the credit under this section. DHEC shall immediately notify the Department of Revenue of any revoked or modified orders affecting previously granted tax credits. Additionally, the taxpayer shall notify the Department of Revenue of any change in tax credit claimed.
(I) This section applies for eligible clean-up expenses incurred after 2001."
SECTION 5. Section 12-6-3360(E) of the 1976 Code is amended to read:
"(E)(1) Taxpayers which qualify for the job tax credit provided in subsection (C) and which are located in a business or industrial park jointly established and developed by a group of counties pursuant to Section 13 of Article VIII of the Constitution of this State are allowed an additional one thousand dollar credit for each new full-time job created. This additional credit is permitted for five years beginning in the taxable year following the creation of the job.
(2) Taxpayers which otherwise qualify for the job tax credit provided in subsection (C) and which are located and the qualifying jobs are located on property where a response action has been completed pursuant to a nonresponsible party voluntary cleanup contract pursuant to Article 7, Chapter 56 of Title 44, the Brownfields Voluntary Cleanup Program, are allowed an additional one thousand dollar credit for each new full-time job created. This additional credit is permitted for five years beginning in the taxable year following the creation of the job. No credit under this item is allowed a taxpayer that is a 'responsible party' as defined in that article."
SECTION 6. Section 12-37-220(B) of the 1976 Code is amended by adding an appropriately numbered item at the end to read:
"( ) Subject to the approval by resolution of the county governing body, property and improvements subject to a nonresponsible party voluntary clean-up contract for which a certificate of completion has been issued by the Department of Health and Environmental Control pursuant to Article 7, Chapter 56 of Title 44, the Brownfields Voluntary Cleanup Program, is exempt from ad valorem taxation in the same manner and to the same extent as the exemption allowed pursuant to subsection (A)(7) of this section. This exemption applies beginning with the taxable year in which the certificate of completion is issued."
SECTION 7. The incentives offered in this act apply only to projects receiving a certification of completion from the Department of Health and Environmental Control after the effective date of this act."
SECTION 8. This act takes effect upon approval by the Governor.
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