Current Status Bill Number:View additional legislative information at the LPITS web site.
2156Ratification Number: 33Act Number: 21Introducing Body: HouseSubject: Jobs tax credit, eligibility for service related industries
(A21, R33, H2156)
AN ACT TO AMEND SECTION 12-7-616, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE JOBS TAX CREDIT, SO AS TO EXTEND ELIGIBILITY FOR THE CREDIT TO SERVICE-RELATED INDUSTRIES AND FOR TAX YEAR 1985 ONLY INCREASE THE NUMBER OF COUNTIES ELIGIBLE FOR CLASSIFICATION FOR PURPOSES OF THE CREDIT.
Be it enacted by the General Assembly of the State of South Carolina:
Certain counties designated as less developed areas
SECTION 1. Subsections A and B of Section 12-7-616 of the 1976 Code are respectively amended to read:
"(A) Annually by December thirty-first, using the most current data available from the South Carolina Employment Security Commission and the United States Department of Commerce, the South Carolina Tax Commission shall make a single determination as to which twelve counties in the State have a combination of the highest unemployment rate and lowest per capita income for the most recent thirty-six month period with equal weight being given to each category. For the tax year 1985 only, the Tax Commission shall make a single determination as to which sixteen counties in the State have a combination of the highest unemployment rate and lowest per capita income for the most recent thirty-six month period with equal weight being given to each category. The counties must be designated less developed areas by the Tax Commission and are qualified for tax credit for jobs as provided in subsection (B) of this section. The designation by the Tax Commission is effective for the tax years of permanent business enterprises which begin after the date of designation. For companies which plan a significant expansion in their labor forces, the Tax Commission shall prescribe certification procedures to insure that the companies can claim credits in future years without regard to whether or not a particular county is removed from the list of less developed areas.
(B) Permanent business enterprises engaged in manufacturing, processing, warehousing, wholesaling, research and development, and service-related industries in less developed areas are allowed a job tax credit for taxes imposed by Section 12-7-230 equal to five hundred dollars annually for each new full-time employee job for five years beginning with years two through six after the creation of the job. The number of new full-time jobs must be determined by comparing the monthly average number of full-time employees subject to South Carolina income tax withholding for the taxable year with the corresponding period of the prior taxable year. Only those permanent businesses that increase employment by eighteen or more in a less developed area are eligible for the credit. Credit is not allowed during any of the five years if the net employment increase falls below eighteen. The Tax Commission shall adjust the credit allowed each year for net new employment fluctuations above the minimum level of eighteen."
SECTION 2. This act shall take effect upon approval by the Governor.