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S. 1152

STATUS INFORMATION

General Bill
Sponsors: Senators Matthews, Patterson, Hutto and Land
Document Path: l:\council\bills\bbm\9256htc06.doc

Introduced in the Senate on February 16, 2006
Currently residing in the Senate Committee on Finance

Summary: Historically black four year colleges

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   2/16/2006  Senate  Introduced and read first time SJ-8
   2/16/2006  Senate  Referred to Committee on Finance SJ-8

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

2/16/2006

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3542 SO AS TO PROVIDE STATE INCOME, BANK, OR PREMIUM TAX CREDITS FOR DONATIONS TO HISTORICALLY BLACK FOUR-YEAR PUBLIC COLLEGES AND UNIVERSITIES MEETING THE DEFINITION OF A "PART B INSTITUTION" FOR PURPOSES OF FEDERAL AID TO HIGHER EDUCATION.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-3542.    (A)    A taxpayer may claim as a credit against his state income tax, bank tax, or premium tax liability thirty-five percent of all amounts donated to a historically black public four-year institution of higher learning located in this State as defined in Part B, Subchapter 111, Chapter 28, Title 20 of the United States Code.

(B)    The total amount of credits allowed pursuant to this section may not exceed in the aggregate twenty million dollars for all taxpayers over five taxable years. The credit must be allowed to taxpayers in the order of the time of making the donation to the institution meeting the criteria of subsection (A).

(C)    If the amount of the credit determined under subsection (A) exceeds the taxpayer's state income tax liability for the applicable taxable year, the taxpayer may carry over the excess to the immediately succeeding taxable years. However, the credit carryover may not be used for a taxable year that begins on or after seven years from the date of the initial donation. The amount of the credit carryover from a taxable year must be reduced to the extent that the carryover is used by the taxpayer to obtain a credit under this section for a subsequent taxable year.

(D)    Notwithstanding the provisions of subsections (A), (B), and (C), if on April 1, 2007, or as soon after that as the Department of Revenue determines, the total amount of tax credits which may be claimed by all taxpayers exceeds the total amount of tax credits authorized by this section, the credits must be determined on a pro rata basis. For purposes of this subsection, a public four-year institution of higher learning for which a donation may be claimed as a tax credit pursuant to this section must report all donations made before April 1, 2007, to the Department of Revenue, by April 1, 2007, and the department, as soon as reasonably possible, shall inform these institutions of the total of all donations to all institutions as of April 1, 2007.

(E)    To receive the credit provided by this section, a taxpayer shall:

(1)    claim the credit on the taxpayer's annual state income, bank tax, or premium tax return in the manner prescribed by the Department of Revenue; and

(2)    file with the Department of Revenue and with the taxpayer's annual state income or premium tax return a copy of the form issued by the institution of higher learning confirming the donation by the taxpayer, as provided in subsection (F).

(F)    The institution must complete a form prescribed by the Department of Revenue showing for each donation to the institution:

(1)    the name, address, and identification number of the taxpayer who made the donation; and

(2)    the amount donated by the taxpayer.

(G)    A taxpayer may not claim the tax credit provided in this section unless the public four-year institution to which the donation is made qualifies as an institution of higher learning with a total student population of sixty percent or more low and moderate income students at the time the donation is made.

(H)    A taxpayer may transfer or assign the tax credit provided in this section, except that for purposes of a time period within which an act must occur pursuant to this section, the transfer or assignment must relate back to the time of original investment made by the transferor or assignor.

(I)    Notwithstanding any other provision of law, the total amount of credits which may be allowed by the Department of Revenue may not exceed seven million dollars, respectively, for the fiscal years 2006-2007 and 2007-2008. A credit which is disallowed because of this subsection may be carried forward as provided in this section."

SECTION    2.    This act takes effect upon approval by the Governor and applies for tax years beginning after 2005.

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