South Carolina General Assembly
116th Session, 2005-2006

Download This Version in Microsoft Word format

Bill 4800


Indicates Matter Stricken
Indicates New Matter


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

A BILL

TO AMEND SECTIONS 12-6-3360, AS AMENDED, 12-6-3410, AS AMENDED, AND 12-6-3420, ALL OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING RESPECTIVELY TO THE TARGETED JOBS TAX CREDIT, THE INCOME TAX CREDIT FOR ESTABLISHING OR ADDING TO A CORPORATE HEADQUARTERS IN THIS STATE, AND THE TAX CREDIT ALLOWED A CORPORATION FOR CONSTRUCTION OR IMPROVEMENT OF AN INFRASTRUCTURE PROJECT, SO AS TO ALLOW THESE CREDITS TO BE CLAIMED AGAINST THE BANK TAX AND TO MAKE CONFORMING AMENDMENTS.

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

SECTION    1.    A.    Section 12-6-3360(A) of the 1976 Code, as last amended by Act 332 of 2002, is further amended to read:

"(A)    Taxpayers that operate manufacturing, tourism, processing, warehousing, distribution, research and development, corporate office, qualifying service-related facilities, and qualifying technology intensive facilities are allowed an annual job tax credit as provided in this section. In addition, taxpayers that operate retail facilities and service-related industries qualify for an annual jobs tax credit in counties designated as least developed or distressed. Credits under this section may be claimed against income taxes imposed by Section 12-6-510 or 12-6-530, bank taxes imposed pursuant to Chapter 11 of this title, and insurance premium taxes imposed pursuant to Chapter 7 of Title 38, and are limited in use to fifty percent of the taxpayer's South Carolina income tax, bank tax, or insurance premium tax liability. In computing any tax payable by a taxpayer under Section 38-7-90, the credit allowable under this section must be treated as a premium tax paid under Section 38-7-20."

B.        Section 12-6-3360(K)(2)(a) of the 1976 Code is amended to read:

"(a)    The amount of the credit allowed a shareholder, partner, or member by this subsection is equal to the shareholder's percentage of stock ownership, partner's interest in the partnership, or member's interest in the limited liability company for the taxable year multiplied by the amount of the credit earned by the entity. This nonrefundable credit is allowed against taxes due under Section 12-6-510 or 12-6-530 and bank taxes imposed pursuant to Chapter 11 of this title and may not exceed fifty percent of the shareholder's, partner's, or member's tax liability under Sections 12-6-510 or 12-6-530 or bank tax liability imposed pursuant to Chapter 11 of this title."

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

"(1)    'Taxpayer' means a sole proprietor, partnership, corporation of any classification, limited liability company, or association taxable as a business entity which is subject to South Carolina taxes as contained in Sections 12-6-510 and 12-6-530, Chapter 11 of this title, and Chapter 7 of Title 38."

D.        Section 12-6-3360(M)(9) of the 1976 Code is amended to read:

"(9)    'Research and development facility' means an establishment engaged in laboratory, scientific, or experimental testing and development related to new products, new uses for existing products, or improving existing products. The term does not include an establishment engaged in efficiency surveys, management studies, consumer surveys, economic surveys, advertising, promotion, banking, or research in connection with literary, historical, or similar projects."

E.        That portion of subitem (b) of Section 12-6-3360(M)(13) of the 1976 Code that precedes subsubitem (i) is amended to read:

"a business, other than a business engaged in legal, accounting, banking, or investment services or retail sales, which has a net increase of at least:"

SECTION    2.    A.    Section 12-6-3410(A) of the 1976 Code is amended to read:

"(A)    A corporation establishing a corporate headquarters in this State, or expanding or adding to an existing corporate headquarters, is allowed a credit against any tax due pursuant to Sections 12-6-530, Section 12-11-20, or Section 12-20-50 as set forth in this section."

B.    Items (6) and (9) of Section 12-6-3410(J), as last amended by Act 89 of 2001, are amended to read:

"(6)    'Research and development' means laboratory, scientific, or experimental testing and development related to new products, new uses for existing products, or improving existing products, but 'research and development' does not include efficiency surveys, management studies, consumer surveys, economic surveys, advertising, promotion, banking, or research in connection with literary, historical, or similar projects.

(9)    'corporation', 'corporate', 'company', and 'taxpayer' for purposes of this section also include a limited liability company which is subject to regulation under the Federal Power Act (16 U.S.C. Section 791(a)) and which is formed to operate or to take functional control of electric transmission assets as defined in the Federal Power Act regardless of whether the limited liability company is treated as a partnership or as a corporation for South Carolina income tax purposes. If treated as a partnership, a limited liability company that qualifies for a credit under this section passes the credit through to its members in proportion to their interests in the limited liability company. Each member's share of the credit is nonrefundable but is allowed as a credit against any tax under Section 12-6-530 or Section 12-20-50 and bank taxes imposed pursuant to Chapter 11 of this title. Each member may carry any unused credit forward as provided in subsection (F). The limited liability company may not carry forward a credit that passes through to its members."

SECTION    3.    Section 12-6-3420(A) of the 1976 Code is amended to read:

"(A)    A corporation may claim a credit for the construction or improvement of an infrastructure project against taxes due under Section 12-6-530 or Section 12-11-20 for:

(1)    expenses paid or accrued by the taxpayer;

(2)    contributions made to a governmental entity; or

(3)    contributions made to a qualified private entity in the case of water or sewer lines and their related facilities in areas served by a private water and sewer company."

SECTION    4.    This act takes effect upon approval by the Governor.

----XX----

This web page was last updated on Tuesday, June 23, 2009 at 2:42 P.M.