House Amendment 1
H 4087 - Session 125 (2023-2024)
Income tax credits

The Committee on Ways and Means proposes the following amendment (LC-4087.DG0001H):

Amend the bill, as and if amended, SECTION 2, by striking Section 12-6-3460(3) and (4) and inserting:

(3) "Qualified recycling facility" means a facility certified as a qualified recycling facility by a duly authorized representative of the department which includes all real and personal property incorporated into or associated with the facility located or to be located within this State that will be used by the taxpayer to manufacture or fabricate products for sale composed of at least fifty percent postconsumer waste material by weight or by volume. The minimum level of investment for a qualified recycling facility must be at least three one hundred million dollars incurred by the end of the fifth calendar year after the year in which the taxpayer begins construction or operation of the facility.

(4) "Postconsumer waste material" means any product generated by a business or consumer which has served its intended end use and which has been separated from the solid waste stream for the purpose of recycling and includes, but is not limited to, scrap metal and iron, and used plastics, paper, glass, batteries, solar panels, turbines and related structures, and rubber.

Amend the bill further, by adding an appropriately numbered SECTION to read:

SECTION X. Section 12-6-3360 of the S.C. Code is amended by adding:

(Q)(1) Notwithstanding any other provision of law, to recruit an eligible business to this State or to expand in this State, and subject to approval by the Joint Bond Review Committee, the Secretary of Commerce is authorized to allow an eligible business to sell, exchange, or otherwise transfer tax credits earned pursuant to this section. A tax credit or increment of a tax credit may be transferred only once. The credit may be transferred to any taxpayer. A taxpayer to whom a credit has been transferred may use the credit for the taxable year in which the transfer occurred and unused amounts may be carried forward to succeeding taxable years, but the transferred credit may not be used more than ten years after it was originally earned. With regard to the sale or exchange of a credit allowed under this section, general income tax principles apply for purposes of the state income tax.

(2) For purposes of this section, an eligible business is a business that is:

(a) headquartered in this State; or

(b) whose primary business is in:

(i) research and development;

(ii) the production of microchips, semiconductors, or circuit boards and other electronics components;

(iii) the production of pharmaceuticals, including active pharmaceutical ingredients;

(iv) advanced manufacturing;

(v) life sciences; or

(vi) new, emerging, or high technologies.