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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO ENACT THE "SOUTH CAROLINA CAPITAL GAINS TAX ELIMINATION ACT" BY AMENDING SECTION 12-6-1150, AS AMENDED, RELATING TO THE DEDUCTION ALLOWED FOR A PORTION OF NET CAPITAL GAINS INCLUDED IN THE OTHERWISE TAXABLE INCOME OF INDIVIDUALS, ESTATES, AND TRUSTS, SO AS TO INCREASE THE DEDUCTION ALLOWED FROM FORTY-FOUR PERCENT TO ONE HUNDRED PERCENT OF THE NET CAPITAL GAIN AND TO PHASE IN THIS INCREASE OVER TEN YEARS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. This act may be cited as the "South Carolina Capital Gains Tax Elimination Act".
SECTION 2. Section 12-6-1150 of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:
"Section 12-6-1150. (A) Individuals, estates, and trusts are allowed a deduction from South Carolina taxable income equal to
forty-four percent a percentage of net capital gain recognized in this State during a taxable year as provided in subsection (C) of this section. In the case of estates and trusts, the deduction is applicable only to income taxed to the estate or trust or individual beneficiaries and not income passed through to nonindividual beneficiaries.
(B)(1) South Carolina income includes capital gains and losses from partnerships and 'S' Corporations.
(2) Net capital gain is as defined in Internal Revenue Code, Section 1222 and related sections.
(C) The deduction allowed pursuant to this section is as follows:
Taxable years beginning in: Net Capital Gain Percentage
2022 and after 100"
SECTION 3. This act takes effect upon approval by the Governor and applies for taxable years beginning after 2012.
This web page was last updated on December 13, 2012 at 3:46 PM