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A9, R9, S408
Sponsors: Senators Short and Leatherman
Document Path: l:\council\bills\agm\18746mm07.doc
Companion/Similar bill(s): 91, 3800, 3848
Introduced in the Senate on February 7, 2007
Introduced in the House on February 21, 2007
Last Amended on March 7, 2007
Passed by the General Assembly on March 8, 2007
Governor's Action: March 28, 2007, Vetoed
Legislative veto action(s): Veto overridden
Summary: Job tax credit
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 2/7/2007 Senate Introduced and read first time SJ-22 2/7/2007 Senate Referred to Committee on Finance SJ-22 2/9/2007 Senate Referred to Subcommittee: O'Dell (ch), Peeler, Reese, Short, Fair, Verdin 2/14/2007 Senate Committee report: Favorable with amendment Finance SJ-14 2/15/2007 Senate Amended SJ-23 2/15/2007 Senate Read second time SJ-23 2/15/2007 Senate Unanimous consent for third reading on next legislative day SJ-23 2/20/2007 Senate Read third time and sent to House SJ-14 2/21/2007 House Introduced, read first time, placed on calendar without reference HJ-11 2/28/2007 House Amended HJ-34 2/28/2007 House Read second time HJ-35 3/1/2007 House Read third time and returned to Senate with amendments HJ-22 3/1/2007 Scrivener's error corrected 3/7/2007 Senate House amendment amended SJ-33 3/7/2007 Senate Returned to House with amendments SJ-33 3/8/2007 House Concurred in Senate amendment and enrolled HJ-1 3/8/2007 Scrivener's error corrected 3/22/2007 Ratified R 9 3/28/2007 Vetoed by Governor 4/3/2007 Senate Veto overridden by originating body Yeas-41 Nays-2 SJ-3 4/11/2007 House Veto overridden Yeas-92 Nays-2 HJ-27 4/16/2007 Copies available 4/16/2007 Effective date See Act for Effective Date 5/7/2007 Act No. 9
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
(A9, R9, S408)
AN ACT TO AMEND SECTION 12-6-3360, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE JOBS TAX CREDIT, SO AS TO PROVIDE THAT A COUNTY'S DESIGNATION MAY NOT BE LOWERED IN CREDIT AMOUNT MORE THAN ONE TIER IN THE FOLLOWING YEAR AS A RESULT OF THE ANNUAL RANKING AND DESIGNATION OF COUNTIES BY THE DEPARTMENT OF REVENUE; TO MAKE A TRANSITIONAL PROVISION FOR THE 2006 TAX YEAR; AND TO AMEND SECTION 12-6-40, AS AMENDED, RELATING TO THE APPLICABILITY OF THE INTERNAL REVENUE CODE TO THE SOUTH CAROLINA TAX CODE, SO AS TO PROVIDE FOR THE APPLICABILITY OF THE 2006 INTERNAL REVENUE CODE.
Be it enacted by the General Assembly of the State of South Carolina:
County designations for purposes of jobs tax credit
SECTION 1. Section 12-6-3360(B) of the 1976 Code, as last amended by Act 390 of 2006, is further amended to read:
"(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 county designations are effective for taxable years that begin in the following calendar year. A county's designation may not be lowered in credit amount more than one tier in the following calendar year. The counties are ranked using the last three completed calendar years of per capita income data and the last thirty-six months of unemployment rate data that are available on November first, 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.
(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.
(f) In a county in which one employer has lost at least 1,500 jobs in a calendar year, the credit allowed is one tier higher than the credit for which the county would otherwise qualify. The one-tier-higher credit allowed by this subsection is allowed for a three-year period beginning immediately following the year during which the jobs were lost. This subsection does not apply to a job created in a county eligible for a higher tier pursuant to another provision of this section.
(g) In a county which is at least one thousand square miles in size and which has had an unemployment rate greater than the state average for the past ten years and an average per capita income lower than the average state per capita income for the past ten years, and which is not included in any of the county classifications contained in subitems (a) through (f) of this item, the credit allowed is two tiers higher than the credit for which the county otherwise would qualify.
(h) In a county in which one employer has lost at least 1,500 jobs in calendar year 2006, the credit allowed is three tiers higher than the credit for which the county would otherwise qualify. The three-tier-higher credit allowed by this subsection is allowed for taxable years beginning in 2007 and 2008. This subsection does not apply to a job created in a county eligible for a higher tier pursuant to another provision of this section."
2006 effective date only
SECTION 2. Section 12-6-40(A)(1)(a) of the 1976 Code, as last amended by Act 386 of 2006, is further amended to read:
"(a) Except as otherwise provided, 'Internal Revenue Code' means the Internal Revenue Code of 1986, as amended through December 31, 2006, and includes the effective date provisions contained in it."
Internal Revenue Code applications for 2006
SECTION 3. A. For tax year 2006 only, due to adjustments to the jobs tax credit classification as a result of legislative changes, a taxpayer has until March 31, 2007, to lock into the county classification as provided in Section 12-6-3360(J).
B. This section takes effect upon approval by the Governor and only for the purpose of locking into the 2006 classification.
SECTION 4. This act takes effect upon approval by the Governor and applies to county designations beginning in 2007.
Ratified the 22nd day of March, 2007.
Vetoed by the Governor -- 3/28/07.
Veto overridden by Senate -- 4/3/07.
Veto overridden by House -- 4/11/07.
This web page was last updated on Wednesday, December 2, 2009 at 3:30 P.M.