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A389, R304, S1175
Sponsors: Senator Leatherman
Document Path: l:\council\bills\bbm\9266htc06.doc
Introduced in the Senate on February 22, 2006
Introduced in the House on March 23, 2006
Last Amended on May 11, 2006
Passed by the General Assembly on May 17, 2006
Governor's Action: May 24, 2006, Vetoed
Legislative veto action(s): Veto overridden
Summary: Targeted jobs tax credit
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 2/22/2006 Senate Introduced and read first time SJ-17 2/22/2006 Senate Referred to Committee on Finance SJ-17 3/16/2006 Senate Committee report: Favorable with amendment Finance SJ-6 3/21/2006 Senate Amended SJ-16 3/21/2006 Senate Read second time SJ-16 3/22/2006 Senate Read third time and sent to House SJ-25 3/23/2006 House Introduced and read first time HJ-16 3/23/2006 House Referred to Committee on Ways and Means HJ-17 5/10/2006 House Committee report: Favorable with amendment Ways and Means HJ-3 5/11/2006 House Amended HJ-18 5/11/2006 House Read second time HJ-19 5/11/2006 House Unanimous consent for third reading on next legislative day HJ-19 5/12/2006 House Read third time and returned to Senate with amendments HJ-2 5/17/2006 Senate Concurred in House amendment and enrolled SJ-46 5/18/2006 Ratified R 304 5/24/2006 Vetoed by Governor 6/14/2006 Senate Veto overridden by originating body Yeas-45 Nays-0 SJ-72 6/14/2006 House Veto overridden Yeas-92 Nays-8 HJ-190 6/21/2006 Copies available 6/21/2006 Effective date 06/14/06 6/28/2006 Act No. 389
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
(A389, R304, S1175)
AN ACT TO AMEND SECTION 12-6-3360, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF THE TARGETED JOBS TAX CREDIT, SO AS TO REVISE THE DEFINITION OF "DISTRIBUTION FACILITY", TO PROVIDE THAT IN A COUNTY OF AT LEAST ONE THOUSAND SQUARE MILES IN SIZE AND WHICH HAS HAD AN UNEMPLOYMENT RATE GREATER THAN THE STATE AVERAGE AND AN AVERAGE PER CAPITA LOWER THAN THE STATE AVERAGE PER CAPITA INCOME FOR THE PAST TEN YEARS AND WHICH IS OTHERWISE NOT ELIGIBLE FOR ANY SPECIAL CLASSIFICATION, THE TARGETED JOBS TAX CREDIT ALLOWED IN THE COUNTY IS TWO TIERS HIGHER THAN THE CREDIT FOR WHICH THE COUNTY WOULD OTHERWISE QUALIFY; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO CONFORM THE DEFINITION OF DISTRIBUTION FACILITY TO THE REVISED DEFINITION PROVIDED BY THE AMENDMENT TO THE TARGETED JOBS TAX CREDIT IN THIS ACT; BY ADDING SECTION 12-6-3367 SO AS TO ALLOW A SMALL BUSINESS AN ALTERNATE METHOD FOR CLAIMING THE TARGETED JOBS TAX CREDIT; AND TO AMEND ACT 157 OF 2005, RELATING TO MISCELLANEOUS REVENUE AND FINANCING MEASURES, SO AS TO MAKE PERMANENT THE PROVISION OF THE TARGETED JOBS TAX CREDIT FOR SMALL BUSINESSES.
Be it enacted by the General Assembly of the State of South Carolina:
Jobs tax credit
SECTION 1. Section 12-6-3360(M)(8) of the 1976 Code is amended to read:
"(8) 'Distribution facility' means an establishment where shipments of tangible personal property are processed for delivery to customers. The term does not include an establishment where retail sales of tangible personal property are made to retail customers on more than twelve days a year except for a facility which processes customer sales orders by mail, telephone, or electronic means, if the facility also processes shipments of tangible personal property to customers and if at least seventy-five percent of the dollar amount of goods sold through the facility are sold to customers outside of South Carolina. Retail sales made inside the facility to employees working at the facility are not considered for purposes of the twelve-day and seventy-five percent limitation. For purposes of this definition, 'retail sale' and 'tangible personal property' have the meaning provided in Chapter 36 of this title."
Property tax exemption definition revised
SECTION 2. Section 12-37-220(B)(32)(7) of the 1976 Code is amended to read:
"(7) 'distribution facility' has the meaning provided pursuant to Section 12-6-3360(M)(8)."
Small business jobs tax credit alternate method
SECTION 3. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3367. (A) A taxpayer eligible, pursuant to Section 12-6-3360(C)(2), for the jobs tax credits allowed pursuant to Section 12-6-3360 may elect to claim the applicable credit in the manner provided pursuant to subsection (B) of this section rather than as provided in Section 12-6-3360(C)(2).
(B) Beginning with the first full month wages are paid for the new full-time jobs created, the taxpayer is allowed a jobs tax credit in an amount equal to 8.33 percent of the maximum credit amount each month, for not more than sixty consecutive months, multiplied by the number of new full-time jobs for which wages are paid for the full month. A credit is not allowed for any month in which the new employment increase falls below the minimum level of two. To claim the credits allowed pursuant to Section 12-6-3360(C)(2)(a), the minimum gross wages requirement is met if the gross wages paid for the month, when annualized, meet the minimum requirement.
(C) Except where altered by subsection (B) of this section, the provisions of Section 12-6-3360 are incorporated into this section."
Credit made permanent
SECTION 4. Section 5(B) of Act 157 of 2005 is amended to read:
"(B) Each tax incentive, including credits and exemptions, enacted by this act shall be repealed for tax years beginning after five years from the date of enactment, unless a different time frame is otherwise provided herein, but this repeal does not apply to the small business targeted jobs tax credit allowed pursuant to Section 12-6-3360(C)(2), as amended by this act."
Jobs tax credit
SECTION 5. A. Section 12-6-3360(B)(5) of the 1976 Code, as last amended by Act 161 of 2005, is further amended by adding a subitem at the end of the item to read:
"(g) In a county which is at least one thousand square miles in size and which has had an unemployment rate greater than the state average for the past ten years and an average per capita income lower than the average state per capita income for the past ten years, and which is not included in any of the county classifications contained in subitems (a) through (f) of this item, the credit allowed is two tiers higher than the credit for which the county otherwise would qualify."
B. Notwithstanding the general effective date provided in this act, this section takes effect upon approval of this act by the Governor and applies for taxable years beginning after 2005 and applies for any company which applied for job development credits pursuant to Section 12-6-3360 of the 1976 Code after 2005.
SECTION 6. This act takes effect upon approval by the Governor.
Ratified the 18th day of May, 2006.
Vetoed by the Governor -- 5/24/06.
Veto overridden by Senate -- 6/14/06.
Veto overridden by House -- 6/14/06.
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