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S. 275
STATUS INFORMATION
General Bill
Sponsors: Senators Gregory and Setzler
Document Path: l:\s-res\ckg\003ripa.dag.doc
Introduced in the Senate on January 16, 2007
Currently residing in the Senate Committee on Finance
Summary: Income tax credit
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 1/16/2007 Senate Introduced and read first time SJ-4 1/16/2007 Senate Referred to Committee on Finance SJ-4
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND CHAPTER 6, TITLE 12 OF THE 1976 CODE BY ADDING SECTION 12-6-3595, TO PROVIDE THAT A TAXPAYER IS ALLOWED AN INCOME TAX CREDIT OF FIVE HUNDRED DOLLARS PER ACRE OF ENHANCED RIPARIAN BUFFER MAINTAINED BY THE TAXPAYER, TO PROVIDE REQUIREMENTS FOR THE CREDIT, AND TO PROVIDE THAT THE CREDIT SHALL NOT YIELD A TAXPAYER MORE THAN TEN THOUSAND DOLLARS ANNUALLY OR SIX MILLION DOLLARS FOR ALL TAXPAYERS.
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 12-6-3595. (A) For purposes of this section:
(1) 'Commission' means the South Carolina Forestry Commission.
(2) 'Primary enhanced riparian buffer' means a riparian buffer along a perennial and intermittent stream or river that extends forty feet from the bank of the stream or river. For a designated trout stream or scenic river, the primary enhanced riparian buffer extends eighty feet from the bank.
(3) 'Riparian buffer' means forested land that is not harvested that is adjacent to a stream or river where vegetation, including timber, helps maintain the integrity of water sources.
(4) 'Secondary enhanced riparian buffer' means a riparian buffer that extends out an additional forty feet beyond a primary enhanced riparian buffer where there is a five to twenty percent land slope perpendicular to the stream, an additional eighty feet beyond a primary enhanced riparian buffer where there is twenty-one to forty percent land slope, or an additional one hundred twenty feet beyond a primary enhanced riparian buffer where there is a land slope greater than forty percent. A secondary enhanced riparian buffer does not exist where there is a land slope of five percent or less.
(B) A taxpayer is allowed a credit against income taxes equal to five hundred dollars per acre of primary enhanced riparian buffer and secondary enhanced riparian buffer maintained by the taxpayer adjoining property where timber is harvested.
(C) To qualify for the credit, a taxpayer must:
(1) own the property;
(2) apply for the credit with the commission no later than December thirty-first of the calendar year in which the qualifying timber harvest is completed. The taxpayer must also pay a non-refundable application fee set by the commission through regulation;
(3) not harvest within the primary enhanced riparian buffer for fifteen years from receipt of the credit;
(4) not harvest within the secondary enhanced riparian buffer for fifteen years unless a minimum of fifty square feet of overstory basal area per acre is maintained evenly spaced throughout the secondary enhanced riparian buffer;
(5) harvest at least ten acres in size and retain an average of thirty square feet, or less, of basal area per acre in standing trees; and
(6) comply with Best Management Practices as determined by the commission throughout the harvest.
A person may still qualify for the credit if they fail to meet the criteria set forth in (3) and (4) if the commission authorizes the harvesting in writing for salvage, insect and disease control, removal of non-native invasive species, or other rehabilitative purposes, provided the water quality and buffer integrity are not compromised.
(D)(1) Pursuant to this section, a taxpayer may receive a credit not to exceed ten thousand dollars annually. The credit shall apply to the year in which the application was filed. Any unused credit may be carried forward against income taxes in the next five succeeding taxable years. The total amount of credit that may be approved for all taxpayers under this section may not exceed six million dollars annually.
(2) Any credit earned pursuant to this section that a shareholder, partner, or member of an S corporation, a partnership, or a limited liability company is allowed, must be determined pursuant to Section 12-6-3310(B).
(3) A taxpayer may claim both the credit allowed by this section and the credit allowed by Section 12-6-3515.
(E)(1) The commission shall periodically monitor enhanced riparian buffers to ensure continued compliance. The commission may use remote imaging, aerial detection, site visits, and other lawful methods to monitor compliance.
(2) If enhanced riparian buffers are not maintained as required, then the tax due under Chapter 6 by the taxpayer, for the taxable year in which the commission determines non-compliance, must be increased by the amount of any credit claimed pursuant to this section in the fifteen years prior.
(3) The commission may adopt rules and promulgate regulations to administer and enforce the provisions of this section."
SECTION 2. This act takes effect upon approval by the Governor.
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