South Carolina General Assembly
115th Session, 2003-2004

Download This Version in Microsoft Word format

Bill 516

Indicates Matter Stricken
Indicates New Matter


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

FREE CONFERENCE COMMITTEE REPORT ADOPTED -- NOT PRINTED

May 29, 2003

S. 516

Introduced by Senator McGill

S. Printed 5/27/03--S.

Read the first time March 26, 2003.

            

A BILL

TO AMEND SECTION 12-6-3360, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TARGETED JOBS TAX CREDIT, SO AS TO EXTEND THE DEFINITION OF "NEW JOB" TO INCLUDE JOBS MAINTAINED WHEN AN UNRELATED ENTITY ACQUIRES SUBSTANTIALLY ALL OF THE ASSETS OF A COMPANY OPERATING UNDER CHAPTER 11 OF THE UNITED STATES BANKRUPTCY CODE, MORE THAN FIVE HUNDRED INDIVIDUALS ARE HIRED WHO WERE LAST EMPLOYED BY THE BANKRUPT TAXPAYER, AND THE JOBS ARE IN A MANUFACTURING FACILITY LOCATED IN A COUNTY CLASSIFIED AS DISTRESSED OR LEAST DEVELOPED.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 12-6-3360(M)(3) of the 1976 Code is amended to read:

"(3)    'New job' means a job created in this State at the time a new facility or an expansion is initially staffed. Except as otherwise provided in this item, the term does not include a job created when an employee is shifted from an existing location in this State to a new or expanded facility whether the transferred job is from, or to, a facility of the taxpayer or a related person. A related person includes any entity or person that bears a relationship to the taxpayer as described in Section 267 of the Internal Revenue Code. However, this exclusion of a new job created by employee shifting does not extend to a job created at a new or expanded facility located in a county in which is located an 'applicable federal facility' as defined in Section 12-6-3450(A)(1)(b). The term 'new job' also includes an existing job at a facility of an employer which is reinstated after the employer has rebuilt the facility due to:

(a)    its destruction by accidental fire, natural disaster, or act of God;

(b)    involuntary conversion as a result of condemnation or exercise of eminent domain by the State or any of its political subdivisions or by the federal government.

Destruction for purposes of this provision means that more than fifty percent of the facility was destroyed. For purposes of this section, involuntary conversion as a result of condemnation or exercise of eminent domain includes a legally binding agreement for the purchase of a facility of an employer entered into between an employer and the State of South Carolina or a political subdivision of the State under threat of exercise of eminent domain by the State or its political subdivision.

The year of reinstatement is the year of creation of the job. All reinstated jobs qualify for the credit pursuant to this section, and a comparison is not required to be made between the number of full-time jobs of the employer in the taxable year and the number of full-time jobs of the employer with the corresponding period of the prior taxable year.

Notwithstanding any other provision of law, 'new job' includes jobs created by a taxpayer when the taxpayer hires more than five hundred full-time individuals:

(a)    at a manufacturing facility located in a county classified as least developed;

(b)    immediately before their employment by the taxpayer, the individuals were employed by a company operating under Chapter 11 of the United States Bankruptcy Code; and

(c)    the taxpayer, as an unrelated entity, acquires as of July 10, 2002, substantially all of the assets of the company operating under Chapter 11 of the United States Bankruptcy Code."

Section    2.    A.    Section 12-20-50 of the 1976 Code is amended by adding a new subsection at the end to read:

"(C)    In addition to the provisions of subsection (B) of this section, a holding company may reduce its paid-in capital surplus by the portion of contributions to capital received from its parent corporation that is directly or indirectly used to finance a subsidiary's expansion costing in excess of one hundred million dollars, which on the date construction started is located in an Economic Impact Zone as defined in Section 12-14-30. A reduction is only allowed pursuant to this subsection for the paid-in capital surplus of the holding company attributable to this contribution to capital for expansion. Additionally, no reduction is allowed unless the expansion is completed within three years of the first contribution to capital received by the holding company, but this three-year limitation may be extended by the Department of Revenue upon written application and good cause shown. Amounts previously excluded in paid-in capital surplus pursuant to this subsection must be included in the first license tax year beginning after the period allowed for the expansion if the expansion is not timely completed."

B.    Notwithstanding the general effective date of this act, this section takes effect upon approval of this act by the Governor and applies to increases in capital over the prior year's capital on January 1, 2003, and thereafter.

SECTION    3.    This act is effective for taxable years beginning after 2002 where the job tax credit pursuant to Section 12-6-3360 of the 1976 Code, as amended by this act, was earned after June 1, 2002.

/s/Harvey S. Peeler, Jr.    /s/Vida O. Miller

/s/Robert W. Hayes, Jr.    /s/Converse A. Chellis

/s/J. Yancey McGill    /s/Daniel T. Cooper

On Part of the Senate.        On Part of the House.

----XX----

This web page was last updated on Thursday, June 25, 2009 at 10:03 A.M.