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Indicates Matter Stricken
Indicates New Matter
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
April 9, 2003
H. 3641
S. Printed 4/9/03--H.
Read the first time February 19, 2003.
To whom was referred a Bill (H. 3641) to amend the Code of Laws of South Carolina, 1976, by adding Section 34-43-60 so as to provide that the provisions of the South Carolina Community Economic Development Act must terminate, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
ROBERT W. HARRELL, JR. for Committee.
REVENUE IMPACT1/
The Board of Economic Advisors has reviewed the bill and has determined that there is no impact on state general or other fund revenue in FY2003-04.
Explanation
This bill would extend the sunset date of "The South Carolina Community Development Act of 2000" to five years after "the receipt of grants and loans budgeted by the South Carolina General Assembly... and after at least five million dollars in tax credits [have been] granted." Under current law, this act is set to expire on June 30, 2005. According to South Carolina Department of Commerce (DOC) officials, this act was designed to fund activities of Community Development Organizations (CDC's) and Community Development Financial Institutions (CDFI's) created to facilitate economic revitalization in low-income communities. Under this act, DOC can fund CDC's and CDFI's through general fund appropriations, private contributions and other sources of revenue. Lifetime funds distributable under this act by DOC to all CDC's and CDFI's cannot exceed $5 million. According to DOC officials, no funds have been distributed by DOC to CDC's or CDFI's since the program was created three years ago. Under current law, taxpayers may also claim a thirty-three percent credit against income, bank, or insurance tax liability for each dollar invested in a CDC or CDFI capped at $5 million for all taxpayers and all taxable years. According to DOC officials, private investors have claimed approximately $60,000 of the $5 million in state community development tax credits available under current law. Because this bill does not allocate General Fund or other revenue to DOC for distribution to CDC's and CDFI's and does not change the $5 million lifetime credit amount already accounted for under current law, the BEA does not expect extending the current sunset provision of the South Carolina Community Development Act beyond 2005 to impact state general or other fund revenue in FY2003-04 or in subsequent years.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 34-43-60 SO AS TO PROVIDE THAT THE PROVISIONS OF THE SOUTH CAROLINA COMMUNITY ECONOMIC DEVELOPMENT ACT MUST TERMINATE AFTER THE FIFTH YEAR OF GRANTS AND LOANS ARE RECEIVED AND AT LEAST FIVE MILLION DOLLARS IN TAX CREDITS ARE USED; AND TO REPEAL SECTION 4 OF ACT 314 OF 2000, RELATING TO SUNSET PROVISIONS FOR THE ACT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 43, Title 34 of the 1976 Code is amended by adding:
"Section 34-43-60. Unless reauthorized by the South Carolina General Assembly, the provisions of this chapter terminate after the fifth year of the receipt of grants and loans budgeted by the South Carolina General Assembly as described in Section 34-43-50 and after at least five million dollars in tax credits are granted pursuant to Section 12-6-3530. This chapter and all other laws and regulations governing, authorizing, and otherwise dealing with community development corporations and community development financial institutions are deemed repealed on that date."
SECTION 2. Section 4 of Act 314 of 2000 is repealed.
SECTION 3. This act takes effect upon approval by the Governor.
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