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COMMITTEE REPORT
April 17, 2008
H. 4927
Introduced by Reps. Littlejohn, Kirsh, Brantley, Clyburn, Cobb-Hunter, Davenport, Haskins, Hodges, Hosey, Loftis, Moss, J.R. Smith, Barfield and Witherspoon
S. Printed 4/17/08--H.
Read the first time April 1, 2008.
To whom was referred a Bill (H. 4927) to amend the Code of Laws of South Carolina, 1976, by adding Section 12-6-3680 so as to allow a refundable income tax credit to a recycling facility, 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, by striking Section 12-6-3680, as contained in SECTION 1, beginning on page 1, and inserting:
/ Section 12-6-3680. (A) For purposes of this section:
(1) 'Recycling facility' means a facility located in South Carolina that:
(a) engages in recycling as defined in Section 44-96-40(37); and
(b) manufactures product for sale composed of over fifty percent post-consumer recycled content and pre-consumer recycled content by weight or by volume.
(B) A taxpayer owning and operating a recycling facility as defined in subsection (A) is allowed a refundable income tax credit equal to the yearly amount expended by the recycling facility for electric service used in the manufacturing process multiplied by the percentage of recycled content calculated in subsection (A)(1)(b) of this section, and multiplied by the following:
(1) one percent in the first year the credit is claimed;
(2) two percent in the second year the credit is claimed;
(3) three percent in the third year the credit is claimed;
(4) four percent in the fourth year the credit is claimed; and
(5) four percent in subsequent years, not to exceed the amount of credit received pursuant to item (4).
(C) The credit is first allowed against returns due to be filed in fiscal year 2009-2010. A credit is not allowed and may not be claimed for a taxable year except as provided in subsection (E).
(D) A taxpayer may claim the credit allowed in this section only on the taxpayer's annual return. The taxpayer shall provide all information that the department determines is necessary for the calculation and administration of the credit.
(E) Beginning with the February 15, 2009, forecast by the Board of Economic Advisors of annual general fund revenue growth for the upcoming fiscal year, and annually after that, if the forecast of that growth then and in any adjusted forecast made before the beginning of the fiscal year equals at least five percent of the most recent estimate by the board of general fund revenues for the current fiscal year, then the applicable credit is allowed for the taxable year returns for which are due in the fiscal year beginning July first. If the February fifteenth forecast or adjusted forecast of annual general fund revenue growth for the upcoming fiscal year meets the requirement for the credit, the board promptly shall certify this result in writing to the department.
(F) The recycling facility must maintain or increase the number of employees in South Carolina in order to qualify for the credit. The benchmark for the number of employees of a recycling facility is the number of employees submitted to the department in the initial claim seeking the credit. The recycling facility must submit a notarized certification of the number of employees to the Department of Revenue each year." /
Renumber sections to conform.
Amend title to conform.
DANIEL T. COOPER for Committee.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3680 SO AS TO ALLOW A REFUNDABLE INCOME TAX CREDIT TO A RECYCLING FACILITY EQUAL TO THE YEARLY AMOUNT EXPENDED BY THE RECYCLING FACILITY FOR ELECTRIC SERVICE MULTIPLIED BY ONE PERCENT IN THE FIRST YEAR THE CREDIT IS CLAIMED, TWO PERCENT IN THE SECOND YEAR, AND INCREASING BY TWO PERCENT IN THE YEARS UP TO A MAXIMUM OF EIGHT PERCENT, AND TO PROVIDE THAT THE CREDIT IS ALLOWED ONLY IF THE ANNUAL FEBRUARY FIFTEENTH FORECAST BY THE BOARD OF ECONOMIC ADVISORS OF ANNUAL GENERAL FUND REVENUE FORECASTS GROWTH THAT EQUALS AT LEAST FIVE PERCENT OF THE MOST RECENT ESTIMATE OF GENERAL FUND REVENUES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3680. (A) For purposes of this section:
(1) 'Recycling facility' means a facility located in South Carolina that:
(a) engages in recycling as defined in Section 44-96-40(37);
(b) manufactures product for sale composed of over fifty percent post-consumer recycled content and pre-consumer recycled content by weight or by volume;
(c) produces over fifty thousand tons of product, which is manufactured as recycled content, for sale in a calendar year; and
(d) employs at least one hundred employees in South Carolina.
(B) For taxable years beginning after June 30, 2009, a taxpayer owning and operating a recycling facility as defined in subsection (A) of this section is allowed a refundable income tax credit equal to the yearly amount expended by the recycling facility for electric service multiplied by one percent in the first taxable year the credit is claimed, two percent in the second year the credit is claimed, and increasing by two percent each year, not to exceed a total of eight percent. A credit is not allowed and may not be claimed for a taxable year except as provided in subsection (D) of this section.
(C) The credit allowed pursuant to this section must be claimed on the taxypayer's annual return and the taxpayer shall provide all information that the department determines necessary for the calculation and administration of this credit.
(D) Beginning with the February 15, 2009, forecast by the Board of Economic Advisors of annual general fund revenue growth for the upcoming fiscal year, and annually thereafter, if the forecast of that growth equals at least five percent of the most recent estimate by the board of general fund revenues for the current fiscal year, then the applicable credit is allowed for the taxable year returns for which are due in the fiscal year beginning the following July first. If the February fifteenth forecast meets the requirement for the credit, the board promptly shall certify this result in writing to the department."
SECTION 2. This act takes effect upon approval by the Governor.
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