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COMMITTEE REPORT
May 30, 2001
H. 3885
Introduced by Reps. Meacham-Richardson, Simrill, Kirsh and Vaughn
S. Printed 5/30/01--S. [SEC 5/31/01 1:51 PM]
Read the first time April 26, 2001.
To whom was referred a Bill (H. 3885) to amend Section 12-24-40, Code of Laws of South Carolina, 1976, relating to exemptions from deed recording fees and Section 12-36-2120, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by striking SECTION 3 and inserting:
/ SECTION 3. (A) Section 12-6-3410(J) of the 1976 Code is amended by adding the following item (9) to read:
"(9) 'corporation", "corporate", "company', and 'taxpayer' for purposes of this section also include a limited liability company which is subject to regulation under the Federal Power Act (16 U.S.C. Section 791a) and which is formed to operate or to take functional control of electric transmission assets as defined in the Federal Power Act regardless of whether the limited liability company is treated as a partnership or as a corporation for South Carolina income tax purposes. If treated as a partnership, a limited liability company that qualifies for a credit under this section passes the credit through to its members in proportion to their interests in the limited liability company. Each member's share of the credit is nonrefundable, but is allowed as a credit against any tax under Section 12-6-530 or 12-20-50. Each member may carry any unused credit forward as provided in subsection (F). The limited liability company may not carry forward a credit that passes through to its members."
(B) The corporate income tax credit taken against the cost of tangible personal property pursuant to Section 12-6-3410(D) authorized to be taken by those corporations or companies referred to in item (9) of Section 12-6-3410(J) of the 1976 Code above may be taken for taxable years beginning after December 31, 2002./
Amend further, as and if amended, In SECTION 4 by striking / 2000 / on line 32, page 2, and inserting / 2002 /.
Renumber sections to conform.
Amend title to conform.
HUGH K. LEATHERMAN, SR. for Committee.
TO AMEND SECTION 12-24-40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXEMPTIONS FROM DEED RECORDING FEES AND SECTION 12-36-2120, RELATING TO EXEMPTIONS FROM SALES TAX, SO AS TO PROVIDE EXEMPTIONS FROM SALES TAX AND DEED RECORDING FEES FOR SALES, EXCHANGES, AND TRANSFERS OF ELECTRIC TRANSMISSION FACILITIES; AND TO AMEND SECTION 12-6-3410, RELATING TO THE CORPORATE INCOME TAX CREDIT FOR CORPORATE HEADQUARTERS, SO AS TO ALLOW CERTAIN LIMITED LIABILITY COMPANIES TO BE TREATED AS CORPORATIONS FOR THIS PURPOSE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-24-40 of the 1976 Code is amended by adding a new item (15) to read:
"(15) transferring title to facilities for transmitting electricity that is transferred, sold, or exchanged by electrical utilities, municipalities, electric cooperatives, or political subdivisions to a limited liability company which is subject to regulation under the Federal Power Act (16 U.S.C. Section 791(a)) and which is formed to operate or to take functional control of electric transmission assets as defined in the Federal Power Act;"
SECTION 2. Section 12-36-2120 of the 1976 Code is amended by adding a new item (59) to read:
"(59) facilities for transmitting electricity that is transferred, sold, or exchanged by electrical utilities, municipalities, electric cooperatives, or political subdivisions to a limited liability company which is subject to regulation under the Federal Power Act (16 U.S.C. Section 791(a)) and which is formed to operate or to take functional control of electric transmission assets as defined in the Federal Power Act;"
SECTION 3. Section 12-6-3410(J) of the 1976 Code is amended by adding the following item (9) to read:
"(9) 'corporation', 'corporate', 'company', and 'taxpayer' for purposes of this section also include a limited liability company which is subject to regulation under the Federal Power Act (16 U.S.C. Section 791a) and which is formed to operate or to take functional control of electric transmission assets as defined in the Federal Power Act regardless of whether the limited liability company is treated as a partnership or as a corporation for South Carolina income tax purposes. If treated as a partnership, a limited liability company that qualifies for a credit under this section passes the credit through to its members in proportion to their interests in the limited liability company. Each member's share of the credit is nonrefundable, but is allowed as a credit against any tax under Section 12-6-530 or Section 12-20-50. Each member may carry any unused credit forward as provided in subsection (F). The limited liability company may not carry forward a credit that passes through to its members."
SECTION 4. This act takes effect upon approval by the Governor and Sections 1 and 2 apply with respect to sales or deeds made or recorded after this date, and Section 3 is applicable to taxable years beginning after December 31, 2000.
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