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Current Status Bill Number:View additional legislative information at the LPITS web site.886 Ratification Number:422 Act Number:332 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:20020116 Primary Sponsor:Leatherman All Sponsors:Leatherman, McGill, Land, Glover, Saleeby, Rankin, Elliott Drafted Document Number:l:\council\bills\bbm\10634htc02.doc Date Bill Passed both Bodies:20020529 Date of Last Amendment:20020528 Governor's Action:S Date of Governor's Action:20020618 Subject:'Distressed county' designation established; designation to apply to rural infrastructure grants, job development credits, and the hiring of person who receives Family Independence payments History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ ------ 20020716 Act No. A332 ------ 20020618 Signed by Governor ------ 20020604 Ratified R422 ------ 20020604 Scrivener's error corrected Senate 20020529 Concurred in House amendment, enrolled for ratification House 20020529 Read third time, returned to Senate with amendment House 20020528 Amended, read second time House 20020523 Committee report: Favorable with 30 HWM amendment ------ 20020412 Scrivener's error corrected House 20020411 Introduced, read first time, 30 HWM referred to Committee Senate 20020410 Amended, read third time, sent to House ------ 20020321 Scrivener's error corrected Senate 20020320 Amended Senate 20020220 Read second time, notice of general amendments ------ 20020221 Scrivener's error corrected Senate 20020219 Committee report: Favorable 06 SF Senate 20020116 Introduced, read first time, 06 SF referred to Committee Versions of This Bill Revised on February 19, 2002 - Word format Revised on February 21, 2002 - Word format Revised on March 20, 2002 - Word format Revised on March 21, 2002 - Word format Revised on April 10, 2002 - Word format Revised on April 12, 2002 - Word format Revised on May 23, 2002 - Word format Revised on May 28, 2002 - Word format Revised on June 4, 2002 - Word format
(A332, R422, S886)
AN ACT TO AMEND SECTION 12-6-3360, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TARGETED JOBS TAX CREDIT, SO AS TO ESTABLISH THE DESIGNATION OF "DISTRESSED COUNTY", PROVIDE THE CRITERIA FOR THE DESIGNATION AND ALLOW A TAX CREDIT EQUAL TO EIGHT THOUSAND DOLLARS FOR EACH NEW FULL-TIME JOB CREATED IN A DISTRESSED COUNTY; TO AMEND SECTION 12-10-85, AS AMENDED, RELATING TO THE STATE RURAL INFRASTRUCTURE FUND, SO AS TO CONFORM THE USE OF FUND REVENUES TO THE "DISTRESSED COUNTY" DESIGNATION AND TO INCREASE FROM FIVE TO TEN MILLION DOLLARS THE THRESHOLD ABOVE WHICH TWENTY-FIVE PERCENT OF FUND REVENUES MUST BE AVAILABLE FOR GRANTS IN COUNTIES ABOVE THE BOTTOM TWO DESIGNATIONS; TO AMEND SECTION 12-6-3470, RELATING TO THE EMPLOYER CREDIT ALLOWED AN EMPLOYER HIRING A PERSON WHO RECEIVED FAMILY INDEPENDENCE PAYMENTS, SO AS TO CONFORM THE ELIGIBILITY FOR THE CREDIT TO THE NEW CATEGORY OF "DISTRESSED COUNTY" AS ESTABLISHED IN THIS ACT; AND TO AMEND SECTIONS 12-10-80 AND 12-10-81, BOTH AS AMENDED, RELATING TO THE JOB DEVELOPMENT CREDIT, SO AS TO CONFORM THESE PROVISIONS TO THE NEW CATEGORY OF "DISTRESSED COUNTY" AS ESTABLISHED IN THIS ACT.
Be it enacted by the General Assembly of the State of South Carolina:
Tax credit; distressed county
SECTION 1. A. Subsections (A) and (B) of Section 12-6-3360 of the 1976 Code, as last amended by Act 89 of 2001, are amended to read:
"(A) Taxpayers that operate manufacturing, tourism, processing, warehousing, distribution, research and development, corporate office, qualifying service-related facilities, and qualifying technology intensive facilities are allowed an annual job tax credit as provided in this section. In addition, taxpayers that operate retail facilities and service-related industries qualify for an annual jobs tax credit in counties designated as least developed or distressed. Credits under this section may be claimed against income taxes imposed by Section 12-6-510 or 12-6-530, and insurance premium taxes imposed pursuant to Chapter 7 of Title 38, and are limited in use to fifty percent of the taxpayer's South Carolina income tax, insurance premium tax liability. In computing any tax payable by a taxpayer under Section 38-7-90, the credit allowable under this section must be treated as a premium tax paid under Section 38-7-20.
(B) The department shall rank and designate the state's counties by December thirty-first each year using data from the South Carolina Employment Security Commission and the United States Department of Commerce. The counties are ranked using the last three years of available per capita income data and the last thirty-six months or three years of available unemployment rate data, with equal weight given to unemployment rate and per capita income as follows:
(1)(a) The twelve counties with a combination of the highest unemployment rate and lowest per capita income are designated distressed counties. Notwithstanding any other provision of law, no more than twelve counties may be designated or classified as distressed and notwithstanding any other provision of this section, a county may be designated as distressed only by virtue of the criteria provided in this subitem.
(b) A category with the same criteria as provided in subitem (a) of this item is designated least developed county which consists of underdeveloped counties otherwise eligible for this category.
(2) The twelve counties with a combination of the next highest unemployment rate and next lowest per capita income are designated underdeveloped counties.
(3) The eleven counties with a combination of the next highest unemployment rate and the next lowest per capita income are designated moderately developed counties.
(4) The eleven counties with a combination of the lowest unemployment rate and the highest per capita income are designated developed counties. The designation by the department is effective for corporate taxable years which begin after the date of designation.
(5)(a) A county, any portion of which is located within twenty-five miles of the boundaries of an applicable military installation or applicable federal facility as defined in Section 12-6-3450(1), shall receive the next increased credit designation for five years beginning with the year in which the military installation or federal facility became an applicable military installation or applicable federal facility as defined in Section 12-6-3450(1), with the additional requirement that the military installation must have reduced employment on the installation of at least three thousand employees.
(b) In addition to the designation in subitem (a), a county in which an applicable military installation or applicable federal facility is located is allowed an additional increased credit designation for five years beginning with the year the installation or facility meets the requirements.
(c) Notwithstanding the designations in Section 12-6-3360, Laurens, Cherokee, and Union Counties shall qualify for the next increased credit designation.
(d) In a county where less than five percent of the work force is in manufacturing, the credit allowed is one tier higher than the credit for which the county would otherwise qualify.
(e) For a job created in a county that is not traversed by an interstate highway, the credit allowed is one tier higher than the credit for which jobs created in the county would otherwise qualify. This subitem does not apply to a job created in a county eligible for a higher tier pursuant to another provision of this item."
B. Section 12-6-3360(C)(1) of the 1976 Code is amended to read:
"(1)(a) Eight thousand dollars for each new full-time job created in distressed counties.
(b) Four thousand five hundred dollars for each new full-time job created in least developed counties."
C. Subsections (J) and (N) of Section 12-6-3360 of the 1976 Code are amended to read:
"(J) For a taxpayer which plans a significant expansion in its labor forces at a location in this State, the appropriate agency shall prescribe certification procedures to ensure that the taxpayer can claim credits in future years even if a particular county is removed from the list of distressed, least developed, under developed, or moderately developed counties.
(N) Except for employees employed in distressed counties, the maximum aggregate credit that may be claimed in any tax year for a single employee under this section and Section 12-6-34(A)(1) is five thousand five hundred dollars."
Rural infrastructure grants; distressed county
SECTION 2. Section 12-10-85(B) of the 1976 Code, as amended by Act 387 of 2000, is further amended to read:
"(B) Rural Infrastructure Fund grants must be available to benefit counties designated as 'distressed' or 'least developed' as defined in Section 12-6-3360 according to guidelines established by the council, except that up to twenty-five percent of the funds annually available in excess of ten million dollars must be set aside for grants to areas of 'underdeveloped', 'moderately developed', and 'developed' counties. A governing body of an 'underdeveloped', 'moderately developed', or 'developed' county must apply to the council for these set-aside grants stating the reasons that certain areas of the county qualify for these grants because the conditions in that area of the county are comparable to those conditions qualifying a county as 'distressed' or 'least developed'."
Job development credit; distressed county
SECTION 3. Section 12-10-80(D)(1)(a) of the 1976 Code, as last amended by Act 89 of 2001, is further amended to read:
"(a) one hundred percent of the maximum job development credits may be claimed by businesses located in counties designated as distressed or least developed;"
Job development credit; distressed county
SECTION 4. Section 12-10-81(E)(1)(a) of the 1976 Code, as last amended by Act 89 of 2001, is further amended to read:
"(a) one hundred percent of the maximum job development credits may be claimed by businesses located in counties designated as distressed or least developed;"
Family independence payments; distressed county
SECTION 5. Section 12-6-3470(B) of the 1976 Code is amended to read:
"(B) In addition to the credits provided for in subsection (A) and Section 12-6-3360, an employer who employs a person who received Family Independence payments within this State for three months immediately preceding the month the person becomes employed and employs that person to work full time in a distressed county or a least developed county, as defined in Section 12-6-3360, is allowed a credit in an amount equal to one hundred seventy-five dollars for each full month during the first thirty-six months of employment."
Time effective
SECTION 6. This act takes effect upon approval by the Governor.
Ratified the 4th day of June, 2002.
Approved the 18th day of June, 2002.
This web page was last updated on Tuesday, December 8, 2009 at 11:14 A.M.