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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3650 SO AS TO ENACT THE "COMMUNITY SCHOOLS INVESTMENT ACT", TO PROVIDE THAT A PERSON IS ALLOWED AN INCOME TAX CREDIT UP TO ONE HUNDRED FIFTY DOLLARS A YEAR FOR A CONTRIBUTION TO A PUBLIC SCHOOL, TO PROVIDE FOR A COMMUNITY SCHOOLS INVESTMENT COMMITTEE AT EACH PUBLIC SCHOOL THAT RECEIVES A CONTRIBUTION TO DETERMINE HOW THE FUNDS ARE SPENT, AND TO PROVIDE THAT TOTAL TAX CREDITS CLAIMED MAY NOT EXCEED FIVE MILLION DOLLARS EACH YEAR.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. This act may be cited as the "Community Schools Investment Act".
SECTION 2. Article 25, Chapter 6, Title 12, of the 1976 Code is amended by adding:
"Section 12-6-3650. (A) A person is allowed a tax credit up to one hundred fifty dollars a year for a contribution to a public school in the State of South Carolina that will be used in accordance with this section. The credit may be applied against the person's liability for taxes imposed pursuant this chapter. Limitations upon the total amount of liability for taxes that can be reduced by the use of another credit allowed for that tax must be computed after the credit allowed by this section is used to reduce a tax liability pursuant to this chapter. The credit may be claimed only by the person who actually made the contribution except that if the credit is earned by one member of a controlled group of corporations, the credit may be used and applied by that member and by another member of the controlled group of corporations. As used in this section, 'controlled group of corporations' has the same meaning as provided in Section 12-6-3480(5) and 'person' has the same meaning as provided in Section 12-2-20. The credit is nonrefundable. A credit claimed pursuant to this section but not used in a taxable year may be carried forward for five years from the taxable year in which the credit is earned by the taxpayer. Credits that are carried forward must be used in the order earned.
(B) Contributions to a public school, which qualify for the credit provided in this section, must be used by the school and must not be considered part of the funds subject to the maintenance of local effort requirement provided in Section 59-21-1030. A school receiving contributions for which the person claims a credit pursuant to this section must segregate the contributions from other funds of the school.
(C) Each public school receiving a contribution pursuant to this section shall form a Community Schools Investment Committee. The committee must be composed of the principal of the school and two teachers to be chosen by the principal to serve on the committee for that school year. The Community Schools Investment Committee shall determine how the contribution received pursuant to this section will be spent based on the needs of the school and its teachers.
(D) Total tax credits claimed pursuant to this section each year may not exceed five million dollars."
SECTION 3. This act takes effect upon approval by the Governor, and the tax credits provided for in this act begin with tax year 2007.
This web page was last updated on Monday, June 22, 2009 at 2:40 P.M.