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COMMITTEE REPORT
April 19, 2005
H. 3885
Introduced by Reps. Hagood, Scarborough, Limehouse, Anderson, Dantzler, Cotty, Brady, Taylor, Perry, R. Brown, Cobb-Hunter and Harrell
S. Printed 4/19/05--H. [SEC 4/25/05 4:44 PM]
Read the first time April 7, 2005.
To whom was referred a Bill (H. 3885) to amend the Code of Laws of South Carolina, 1976, by adding Section 12-6-3375 so as to provide either an additional jobs tax credit or an additional investment tax credit, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, in Section 12-6-3375(D)(3) of the 1976 Code, as contained in SECTION 1, by striking /privately owned or / on line 32, page 2.
When amended item (3) shall read:
"(3) 'Port facility' means any publicly owned facility located within this State through which cargo is transported by way of a waterborne ship or vehicle to or from destinations outside this State."
Amend the bill, as and if amended, by adding a new subsection (G) to Section 12-6-3375, as contained in SECTION 1, to read:
/ (G) The maximum amount of tax credits allowed to all qualifying taxpayers pursuant to this section may not exceed eight million dollars per calendar year. Tax credits allowed shall be allocated based on the date an application is received by the Coordinating Council for Economic Development. In addition, the Coordinating Council, in its discretion, may allocate an additional two million dollars of tax credits per calendar year. Coordination of this amount is the responsibility of the Coordinating Council.
The Coordinating Council has sole discretion in determining eligibility for additional credits provided by this section.
An application must be submitted to the Coordinating Council with the same information as required by subsection (C), and any other information required by the Coordinating Council. /
Renumber sections to conform.
Amend title to conform.
ROBERT W. HARRELL, JR. for Committee.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3375 SO AS TO PROVIDE EITHER AN ADDITIONAL JOBS TAX CREDIT OR AN ADDITIONAL INVESTMENT TAX CREDIT FOR COMPANIES USING STATE PORTS AUTHORITY FACILITIES WHICH INCREASE THEIR BASE PORT CARGO VOLUME AT THESE FACILITIES BY A MINIMUM OF FIVE PERCENT OVER 2005 TOTALS AND TO PROVIDE PROCEDURES NECESSARY TO IMPLEMENT THESE TAX CREDITS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3375. (A) Companies primarily engaged in manufacturing, warehousing, or distribution, which use port facilities in this State and which increase their base port cargo volume at these facilities by a minimum of five percent over 2005 totals, are eligible to take either a five hundred dollar additional tax credit for each new full-time job created, or an additional two percent investment tax credit for investments in new facilities, plant, and equipment. Companies may also take an additional two hundred fifty dollar tax credit for each new full-time job created, or an additional one percent investment tax credit for each incremental two and one-half percent increase in port cargo volume which is over and above the minimum five percent increase in base volume. An annual maximum of one thousand five hundred dollars per job or a six percent investment tax credit applies in regard to the tax credits authorized by this section. The credit may only be claimed by the manufacturer, warehouse, or distribution company which owns the cargo at the time the State Ports Authority facilities are used.
(B) Base year port cargo volume must be at least seventy-five net tons of noncontainerized cargo or ten loaded TEUs for a company to be eligible for the credits provided for in this section.
(C) For every year in which a taxpayer claims the credit, the taxpayer shall attach a schedule to the taxpayer's state income tax return, which shall set forth the following information, as a minimum, in addition to the information required by law and by the Department of Revenue:
(1) a description of how the base year port traffic and the increase in port traffic was determined;
(2) the amount of the base year port traffic;
(3) the amount of the increase in port traffic for the taxable year, including information which demonstrates an increase in port traffic in excess of the minimum amount required to claim the tax credits under this section;
(4) any tax credit utilized by the taxpayer in prior years;
(5) the amount of tax credit carried over from prior years;
(6) the amount of tax credit utilized by the taxpayer in the current taxable year; and
(7) the amount of tax credit to be carried over to subsequent tax years.
(D) As used in this section:
(1) 'TEU' means twenty-foot equivalent unit.
(2) 'Base port cargo volume' means the total amount of net tons of noncontainerized or twenty-foot equivalent units (TEUs) of product actually transported by way of a waterborne ship through a port facility during the period from January 1, 2005, through December 31, 2005.
(3) 'Port facility' means any privately owned or publicly owned facility located within this State through which cargo is transported by way of a waterborne ship or vehicle to or from destinations outside this State.
(4) 'Port traffic' means the total amount of net tons of noncontainerized cargo or containers measured in twenty-foot equivalent units (TEUs) of cargo transported by way of a waterborne ship or vehicle through a port facility.
(5) 'New job' has the meaning defined in Section 12-6-3360(M)(3).
(6) 'Full-time' has the meaning defined in Section 12-6-3360(M)(4).
(7) 'Warehousing facility' has the meaning defined in Section 12-6-3360(M)(7).
(8) 'Distribution facility' has the meaning defined in Section 12-6-3360(M)(8).
(E) Job tax credit provisions and procedures contained in Section 12-6-3360 and investment tax credit provisions and procedures contained in Section 12-14-60 apply to the tax credits provided by this section mutatis mutandi in the manner determined by the Department of Revenue
(F) A company which increases its base port cargo volume at Ports Authority facilities may take either the additional job tax credits or the additional investment tax credits as provided by this section, but not both."
SECTION 2. This act takes effect upon approval by the Governor.
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