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1210Ratification Number: 305Act Number: 277Type of Legislation: General Bill GBIntroducing Body: SenateIntroduced Date: 20000302Primary Sponsor: ShortAll Sponsors: ShortDrafted Document Number: l:\council\bills\dka\3735mm00.docDate Bill Passed both Bodies: 20000503Date of Last Amendment: 20000425Governor's Action: SDate of Governor's Action: 20000519Subject: Job tax credit, corporate income tax credit; moratorium when new jobs created in certain counties; Businesses, TaxationHistory Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ ------ 20000606 Act No. A277 ------ 20000519 Signed by Governor ------ 20000516 Ratified R305 House 20000503 Read third time, enrolled for ratification House 20000502 Read second time House 20000427 Recalled from Committee 30 HWM House 20000426 Introduced, read first time, 30 HWM referred to Committee Senate 20000425 Read third time, sent to House Senate 20000425 Reconsidered vote whereby amendment No. 1 was adopted; amendment withdrawn ------ 20000414 Scrivener's error corrected Senate 20000413 Amended ------ 20000410 Scrivener's error corrected Senate 20000406 Amended, read second time, notice of general amendments ------ 20000405 Scrivener's error corrected Senate 20000404 Recalled from Committee, 06 SF placed on the Calendar Senate 20000302 Introduced, read first time, 06 SF referred to Committee Versions of This Bill Revised on April 4, 2000 - Word format Revised on April 5, 2000 - Word format Revised on April 6, 2000 - Word format Revised on April 10, 2000 - Word format Revised on April 13, 2000 - Word format Revised on April 14, 2000 - Word format Revised on April 25, 2000 - Word format Revised on April 27, 2000 - Word format
(A277, R305, S1210)
AN ACT TO AMEND CHAPTER 6, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE INCOME TAX, BY ADDING SECTION 12-6-3365 SO AS TO PROVIDE FOR A MORATORIUM ON STATE CORPORATE INCOME TAXES FOR A TAXPAYER WHO CREATES AND MAINTAINS FULL-TIME NEW JOBS IN A COUNTY QUALIFYING BY REASON OF HIGH UNEMPLOYMENT OR LOW PER CAPITA INCOME, TO ESTABLISH CRITERIA FOR THE NUMBER AND TYPE OF FULL-TIME NEW JOBS REQUIRED AND FOR THE DETERMINATION OF QUALIFYING COUNTIES, AND TO PROVIDE FOR THE LENGTH OF THE MORATORIUM; AND TO AMEND SECTION 12-6-3360, AS AMENDED, RELATING TO JOB TAX CREDIT, SO AS TO PROVIDE THAT TAX CREDITS MAY BE CLAIMED, OR UNUSED TAX CREDITS CARRIED FORWARD, AFTER EXPIRATION OF THE MORATORIUM PERIOD; AND TO PROVIDE THAT A TAXPAYER MAY QUALIFY FOR THE MORATORIUM BEGINNING IN TAX YEARS AFTER 1999, WITH THE REPEAL OF THESE PROVISIONS ON JULY 1, 2005, NOT AFFECTING A MORATORIUM THEN IN EFFECT.
Be it enacted by the General Assembly of the State of South Carolina:
Moratorium on state tax
SECTION 1. Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3365. (A) A taxpayer creating and maintaining at least one hundred full-time new jobs, as defined in Section 12-6-3360(M), at a facility of a type identified in Section 12-6-3360(M) is allowed a moratorium on state corporate income taxes imposed pursuant to Section 12-6-530 for the ten taxable years beginning the first full taxable year after the taxpayer qualifies and ending either ten years from that year or the year when the taxpayer's number of full-time new jobs falls below one hundred, whichever is earlier.
(B) To qualify for the moratorium pursuant to subsection (A), a taxpayer must create at least one hundred full-time new jobs at a facility in a county:
(1) with an average annual unemployment rate of at least twice the state average during each of the last two completed calendar years, based on the most recent unemployment rates available, or that is one of the three lowest per capita income counties, based on the average of the three most recent years of available average per capita income data; and
(2) in which at least ninety percent of the taxpayer's total investment in this State is located.
(C) The moratorium applies to that portion of the taxpayer's corporate income tax that represents the ratio of the company's new investment in the qualifying county to its total investment in this State.
(D) The department shall prescribe certification procedures to ensure that the taxpayer may claim the moratorium in future years even if a particular county is removed from the list of moratorium counties.
(E) If the taxpayer creates and maintains at least two hundred full-time new jobs within five years from the date the taxpayer creates the first full-time new job at the facility, the moratorium period is fifteen taxable years, beginning the first full taxable year after the taxpayer qualifies and ending either fifteen years from that year or the year when the taxpayer's number of full-time new jobs falls below two hundred, whichever is earlier.
(F) The taxpayer must create the one hundred full-time new jobs within five years from the date it creates the first full-time new job, except that the taxpayer must have hired its first full-time new employee by July 1, 2005, to be eligible for either the ten-year or fifteen-year moratorium."
Carry forward of unused credit
SECTION 2. Section 12-6-3360(H) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:
"(H) A credit claimed under this section but not used in a taxable year may be carried forward for fifteen years from the taxable year in which the credit is earned by the taxpayer. Credits which are carried forward must be used in the order earned and before jobs credits claimed in the current year. A taxpayer who earns credits allowed by this section and who also is eligible for the moratorium provided in Section 12-6-3365 may claim the credits and may carry forward unused credits beginning after the moratorium period expires."
SECTION 3. This act takes effect upon approval by the Governor and applies to tax years beginning after 1999. Further, Section 12-6-3365 of the 1976 Code, as added by this act, is repealed effective July 1, 2005, except that the repeal does not affect any moratorium in effect on that date.
Ratified the 16th day of May, 2000.
Approved the 19th day of May, 2000.
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